(a) In general

The Internal Revenue Code of 1986 is amended by adding at the end the following new subtitle:

L Greenhouse Gas Emissions

1 TAXATION OF GREENHOUSE GAS EMISSIONS

9901. Imposition of tax on combusted fossil fuel greenhouse gas emissions

(a) In general

There is hereby imposed a tax on fossil fuels produced within, or imported into, the United States.

(b) Rate of tax

(1) Greenhouse gases that would be released if the fossil fuel were combusted

The tax imposed by subsection (a) shall be the applicable amount per ton of carbon dioxide equivalent of all greenhouse gasses that would be released if the fossil fuel were combusted.

(2) Applicable amount of carbon dioxide equivalent emissions

For purposes of paragraph (1), the term applicable amount means—

(A)

for calendar year 2027, $35 per metric ton of carbon dioxide equivalent emissions, and

(B)

for each calendar year after 2027, the tax rate shall be the sum of—

(i)

the previous calendar year’s tax rate, plus

(ii)

the sum of—

(I)

5 percentage points, plus

(II)

a percentage increase in the previous year’s tax rate equal to the increase in the Consumer Price Index for the previous calendar year.

(3) Consumer price index for any calendar year

For purposes of subparagraph (B), the Consumer Price Index for the previous calendar year is the average of the Consumer Price Index for all-urban consumers published by the Department of Labor as of the close of the 12-month period ending on August 31 of such calendar year. For purposes of the preceding sentence, the revision of the Consumer Price Index which is most consistent with the Consumer Price Index for calendar year 1986 shall be used.

(4) Rate adjustment based on emission levels

(A) Report

Not later than March 30, 2028, and annually thereafter, the Secretary and the Administrator shall jointly report the emissions during the calendar year ending on the preceding December 31 from sources subject to taxation under this part. The report shall determine whether the cumulative amount of annual emissions reported for the period beginning in calendar year 2027 and through the end of the preceding calendar year were less than the emissions levels specified in the following schedule:

(i)

The total emissions through calendar year 2027 are 4,700 million metric tons of carbon dioxide equivalent.

(ii)

The total emissions through calendar year 2028 are 9,400 million metric tons of carbon dioxide equivalent.

(iii)

The total emissions through calendar year 2029 are 14,000 million metric tons of carbon dioxide equivalent.

(iv)

The total emissions through calendar year 2030 are 18,300 million metric tons of carbon dioxide equivalent.

(v)

The total emissions through calendar year 2031 are 22,600 million metric tons of carbon dioxide equivalent.

(vi)

The total emissions through calendar year 2032 are 26,800 million metric tons of carbon dioxide equivalent.

(vii)

The total emissions through calendar year 2033 are 31,000 million metric tons of carbon dioxide equivalent.

(viii)

The total emissions through calendar year 2034 are 35,100 million metric tons of carbon dioxide equivalent.

(ix)

The total emissions through calendar year 2035 are 39,100 million metric tons of carbon dioxide equivalent.

(x)

The total emissions through calendar year 2036 are 43,100 million metric tons of carbon dioxide equivalent.

(xi)

The total emissions through calendar year 2037 are 47,100 million metric tons of carbon dioxide equivalent.

(B) Adjustments for report period

(i) In general

Not later than March 30, 2029, and every two years thereafter, the Secretary shall determine whether an adjustment is required in accordance with clause (ii).

(ii) Period through 2036

If the emission level reported under subparagraph (A) for calendar year 2028, and every second calendar year thereafter through calendar year 2038, exceeds the level for such calendar year specified in clauses (i) through (xi) of subparagraph (A), then the applicable amount under paragraph (2) for the calendar year beginning on the next January 1 following the determination in clause (i) shall, after the increase under paragraph (2) for such next calendar year, be increased by an additional $4 per metric ton.

(c) By whom paid

The tax imposed by subsection (a) shall be paid by the owner of the fossil fuel at the point of taxation.

(d) Point of taxation

(1)

For fossil fuels produced within the United States, the point of taxation shall be—

(A)

for coal, the mine mouth or, for washed coal, the exit from the coal preparation and processing plant,

(B)

for petroleum products, the exit point from the refinery, and

(C)

for natural gas, the exit from the gas processing plant or, for natural gas that is not treated at a gas processing plant, the point of sale to the person who combusts the gas or incorporates it into a product that is not intended for combustion.

(2)

For any fossil fuel imported into the United States, the point of taxation shall be the point at which it first enters the United States.

(e) Exemptions

(1) Exemption for noncombustive uses

(A) Refund for reduction or elimination of emissions

Any manufacturer of a product that incorporates a fossil fuel that has been taxed under this section who can demonstrate to the Secretary that the fossil fuel has been transformed via the manufacture of the product so that the fossil fuel’s emissions will be reduced or eliminated over the product’s lifetime shall be entitled to a refund of the tax paid under this section on the proportion of the emissions reduced thereby, as determined by the Secretary.

(B) Rule

The Secretary, in consultation with the Administrator, shall establish by rule the criteria and process by which product manufacturers can demonstrate that the conditions in subparagraph (A) have been satisfied.

(C) Publication of regulations

The Secretary shall publish the regulations required by this subsection no later than one year prior to the start of the calendar year referred to in section 9901(b)(2)(A). The Secretary may not collect the tax imposed by this section for any calendar year that begins less than one year after the regulations are published.

(2) Exemption for carbon capture and storage

(A) Refund for sequesters

Any person who sequesters greenhouse gas emissions resulting from the combustion of fossil fuel that has passed through a point of taxation shall be entitled to a refund of the tax imposed by this section. Emissions that are used for enhanced oil recovery shall be entitled for such refund provided that these emissions meet all of the criteria applicable to other emissions that qualify for such refund.

(B) Rule

The Secretary shall establish by rule the procedures by which to apply for such refunds and such refunds shall be paid within six months of the Secretary receiving an approvable application.

(C) Time of refund

The Secretary may not refund any amounts under this paragraph until such time as the Secretary has published the regulations described in section 45Q(f)(2).

9902. Imposition of tax on greenhouse gas emissions from certain industrial processes

(a) In general

There is hereby imposed a tax on industrial process greenhouse gas emissions by certain source categories.

(b) List of source categories

(1) Initial list

The Congress establishes for purposes of this section a list of source categories subject to this section as follows:

(A)

Iron and steel production and metallurgical coke production.

(B)

Underground coal mining.

(C)

Coal preparation and processing plants.

(D)

Refineries.

(E)

Cement production.

(F)

Petrochemical production.

(G)

Lime production.

(H)

Ammonia production.

(I)

Aluminum production.

(J)

Soda ash production.

(K)

Ferroalloy production.

(L)

Phosphoric acid production.

(M)

Glass production.

(N)

Zinc production.

(O)

Lead production.

(P)

Magnesium production and processing.

(Q)

Nitric acid production.

(R)

Adipic acid production.

(S)

Semiconductor manufacture.

(T)

Electrical transmission and distribution.

(2) Revision of the list

The Administrator shall review the list of source categories established by this subsection not less than once every five years to determine if they should continue to be listed and publish the results of that review. The Administrator may, if appropriate, add any source categories to this list by rule.

(3) Removal of a source category from the list

The Administrator may remove a source category from this list only if—

(A)

the total emissions from the entire source category which are taxable under this section have been less than 250,000 metric tons of carbon dioxide equivalent per year for each of three consecutive years,

(B)

the average emissions from facilities in the source category which are taxable under this section have been less than 25,000 metric tons of carbon dioxide equivalent per year for each of the years referred in subparagraph (A), and

(C)

the Administrator determines that there is no reasonable possibility that the total emissions from the entire source category which are taxable under this section will exceed 250,000 metric tons per year of carbon dioxide equivalent within any of the five years following such determination.

(4) Addition of a source category to the list

The Administrator may add a source category to this list only if the Administrator determines that—

(A)

the total emissions from the entire source category which are taxable under this section have been greater than 250,000 metric tons per year of carbon dioxide equivalent in any two years out of the preceding five years,

(B)

the average emissions from facilities in the source category which are taxable under this section have been greater than 25,000 metric tons per year of carbon dioxide equivalent in the years in which emissions from the entire source category have been greater than 250,000 tons per year, and

(C)

there is a reasonable possibility that the total emissions from the entire source category which are taxable under this section will be greater than 250,000 metric tons per year of carbon dioxide equivalent in any year within the next five years following such determination.

(c) Rate of tax

The rate of tax shall be the same as the rate given in section 9901(b)(2).

(d) By whom paid

The tax imposed by subsection (a) shall be paid by the owner or operator of the point of taxation.

(e) Point of taxation

The point of taxation shall be any facility in a source category which emits more than 25,000 metric tons of carbon dioxide equivalent subject to taxation under this section in any calendar year.

9903. Imposition of tax on greenhouse gas emissions from certain product uses

(a) In general

There is hereby imposed a tax on non-fossil-fuel-greenhouse-gas emissions by certain manufactured products when used for their intended purposes that are manufactured within or imported into, the United States.

(b) List of products

(1) Initial list

The Congress establishes for purposes of this section a list of products subject to this section as follows:

(A)

Fuel ethanol.

(B)

Industrial carbonates.

(C)

Carbon dioxide urea.

(D)

Soda ash.

(E)

Nitrous oxide.

(F)

Ozone depleting substances, but not if the United States has ratified the Kigali Amendment to the Montreal Protocol and is subject to Article 2J, paragraph 1 of the Amended Montreal Protocol.

(G)

Biodiesel.

(H)

Solid biomass fuels.

(2) Revision of the list

The Administrator shall review the list of products established by this subsection not less than once every five years to determine if they should continue to be listed and publish the results of that review. The Administrator may, if appropriate, add any product to this list by rule.

(3) Removal of a product from the list

The Administrator may remove a product from this list only if—

(A)

the total emissions from all of the product used within the United States has been less than 250,000 metric tons per year of carbon dioxide equivalent for each of three consecutive years, and

(B)

the Administrator determines that there is no reasonable possibility that the total emissions from all of the product used in the United States will exceed 250,000 metric tons per year of carbon dioxide equivalent within any of the five years following such determination.

(4) Addition of a product to the list

The Administrator may add a product to this list only if the Administrator determines that—

(A)

the total emissions from all of the product used within the United States has been greater than 250,000 metric tons per year of carbon dioxide equivalent in any two years out of the preceding five years, and

(B)

there is a reasonable possibility that the total emissions from all of the product used within the United States will be greater than 250,000 metric tons per year of carbon dioxide equivalent in any year within the next five years following such determination.

(c) Rate of tax

The rate of tax shall be the same as the rate given in section 9901(b)(2).

(d) By whom paid

The tax imposed by subsection (a) shall be paid—

(1)

for products manufactured in the United States, by the owner or operator of the point of taxation, and

(2)

for products imported into the United States, by the owner of the product when it enters the United States.

(e) Point of taxation

The point of taxation shall be—

(1)

for products manufactured in the United States, the manufacturing facility,

(2)

for products imported into the United States, the point at which it first enters the United States, and

(3)

for domestically produced biomass fuel by a facility that emits from combusted biomass fuel more than 25,000 metric tons of carbon dioxide equivalent greenhouse gases in a year, the facility that combusts the biomass fuel.

9904. Calculation of taxable emissions

(a) How To calculate taxable emissions

In consultation with the Department of Energy, the Administrator shall establish by rule (and may, from time to time, revise) the method by which taxable emissions under this part shall be calculated.

(b) Categories and subcategories considered

For purposes of calculating emissions taxable under—

(1)

section 9901, the Administrator shall determine by rule the amount of carbon dioxide equivalent that would be emitted if each fossil fuel were combusted, and the Administrator may establish by rule such subcategories of each fuel and the means by which it is combusted as the Administrator deems appropriate,

(2)

section 9902, the Administrator may determine by rule such subcategories of any industrial process category listed in subsection 9902(b) as the Administrator deems appropriate, and

(3)

section 9903, for fuel ethanol, biodiesel, and solid biomass fuels the Administrator shall determine by rule the amount of carbon dioxide equivalent that would be emitted based on the lifecycle greenhouse gas emissions of the product (excluding emissions from fossil fuels that have passed through a point of taxation), and the Administrator may determine by rule such subcategories of manufactured products listed in subsection 9903(b) as the Administrator deems appropriate.

(c) Methods

Where greenhouse gas emissions subject to taxation under any section of this part are combined with greenhouse gas emissions subject to taxation under any other section of this part, the Administrator shall ensure, to the greatest degree possible, that the methods required to determine the emissions taxable under any section of this part do not include any emissions taxable under any other section of this part.

(d) Method cost differences

The Administrator shall not require the use of any method to calculate taxable emissions whereby the difference in cost of the method compared to the next cheapest alternative method is greater than the amount of the tax that would be paid on the additional emissions determined by the more expensive method.

(e) Publication of regulations

The Administrator shall publish the regulations required by this section no later than one year prior to the start of the calendar year referred to in section 9901(b)(2)(A). The Secretary may not collect the tax imposed by any section in this part for any calendar year that begins less than one year after the regulations applicable to each such section are published.

9905. Credit for state payments

(a) Credit for payments

The Secretary shall allow any person who is required to make payment for greenhouse gas emissions under this part a credit for payments made on those emissions required under any State law in the following manner:

(1)

For the year given in section 9901(b)(2), a credit equal to 100 percent of the amount paid pursuant to requirements of State law.

(2)

For the first year following the year used in paragraph (1), a credit equal to 80 percent of the amount paid pursuant to requirements of State law.

(3)

For the second year following the year used in paragraph (1), a credit equal to 60 percent of the amount paid pursuant to requirements of State law.

(4)

For the third year following the year used in paragraph (1), a credit equal to 40 percent of the amount paid pursuant to requirements of State law.

(5)

For the fourth year following the year used in paragraph (1), a credit equal to 20 percent of the amount paid pursuant to requirements of State law.

(b) No credit

For all years following the year used in paragraph (5), no credit shall be allowed.

9906. Penalties for nonpayment

Any person who fails to comply with the requirements of section 9901, 9902, or 9903 shall be liable for payment to the Secretary, without demand, of a penalty in the amount equal to 3 times the applicable amount specified by those sections for the same tax year as the year in which the person failed to comply with such requirements.

9907. Definitions

Unless otherwise provided, the definitions provided herein are applicable to all provisions of this subtitle.

(1) Administrator

The term Administrator means the Administrator of the Environmental Protection Agency.

(2) Cardon dioxide equivalent

The term carbon dioxide equivalent means the number of metric tons of CO₂ emissions with the same global warming potential over a 100-year period as one metric ton of another greenhouse gas.

(3) Coal

The term coal means any of the recognized classifications and ranks of coal, including anthracite, bituminous, semibituminous, subbituminous, lignite, and peat.

(4) Coal preparation and processing plant

The term coal preparation and processing plant means any facility (excluding underground mining operations) which prepares coal by one or more of the following processes: breaking, crushing, screening, wet or dry cleaning, and thermal drying.

(5) Enhanced oil recovery

The term enhanced oil recovery has the meaning defined at section 1.193–1(b)(2) of title 26, Code of Federal Regulations, as in effect on the date of enactment of this section.

(6) Facility

The term facility means any physical property, plant, building, structure, source, or stationary equipment located on one or more contiguous or adjacent properties in actual physical contact or separated solely by a public roadway or other public right-of-way and under common ownership or common control, that emits or may emit any greenhouse gas.

(7) Fossil fuel

The term fossil fuel means coal, petroleum products, or natural gas.

(8) Greenhouse gas

The term greenhouse gas means carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.

(9) Greenhouse gas effects

The term greenhouse gas effects means the adverse effects of greenhouse gasses on health or welfare caused by the greenhouse gas’s heat-trapping potential or its effect on ocean acidification.

(10) Lifecycle greenhouse gas emissions

The term lifecycle greenhouse gas emissions has the meaning given that term in section 211 of the Clear Air Act.

(11) Natural gas

The term natural gas means any fuel consisting in whole or in part of natural gas, including components of natural gas such as methane and ethane; liquid petroleum gas; synthetic gas derived from coal, petroleum, or natural gas liquids; or any mixture of natural gas and synthetic gas.

(12) Petroleum products

The term petroleum products means unfinished oils, liquefied petroleum gases, pentanes plus, aviation gasoline, motor gasoline, naphtha-type jet fuel, kerosene-type jet fuel, kerosene, distillate fuel oil, residual fuel oil, petrochemical feedstocks, special naphthas, lubricants, waxes, petroleum coke, asphalt, road oil, still gas, and miscellaneous products obtained from the processing of crude oil (including lease condensate), natural gas, and other hydrocarbon compounds. The term does not include natural gas, liquefied natural gas, biofuels, methanol, and other nonpetroleum fuels.

(13) Publish

The term publish means publication in the Federal Register.

(14) Refinery

The term refinery means any facility engaged in producing gasoline, kerosene, distillate fuel oils, residual fuel oils, lubricants, or other products through distillation of petroleum or through redistillation, cracking, or reforming of unfinished petroleum derivatives.

(15) Owner

The term owner with respect to any fossil fuel means any person who has legal title to the fossil fuel.

(16) Owner or operator

The term owner or operator with respect to any fossil fuel means any person who has legal title to the fossil fuel.

(17) Sequesters

The term sequesters means the permanent storage of carbon dioxide or other greenhouse gas such that it does not escape into the atmosphere, and is in compliance with the regulations issued pursuant to section 45Q(f)(2).

(18) Solid biomass

The term solid biomass means nonfossilized and biodegradable organic material originating from plants, animals, or microorganisms, including products, byproducts, residues and waste from agriculture, forestry, and related industries as well as the nonfossilized and biodegradable organic fractions of industrial and municipal wastes, but does not include gases and liquids recovered from the decomposition of nonfossilized and biodegradable organic material.

(19) Source category

The term source category means any category or subcategory regulated under part 60 of title 40, Code of Federal Regulations, or part 90 of title 40, Code of Federal Regulations.

(b) Clerical amendment

The table of subtitles for the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

L Greenhouse Gas Emissions

(c) Effective date

The amendments made by this section shall apply to emissions after the later of December 31, 2025, and the date that is one year after the date regulations are promulgated under section 9914 of the Internal Revenue Code of 1986.

(a) In general

Subtitle L of the Internal Revenue Code of 1986, as added by subsection (a), is further amended by adding at the end the following new part:

2 TAX ADJUSTMENTS FOR IMPORTS AND EXPORTS OF GREENHOUSE GAS INTENSIVE PRODUCTS

9911. Purposes

(a) Purposes of part

The purposes of this part are—

(1)

to promote a strong global effort to significantly reduce greenhouse gas emissions, and

(2)

to prevent carbon leakage.

(b) Additional purposes of part

The purposes of this part are additionally—

(1)

to provide a rebate to exporters in domestic eligible industrial sectors for the greenhouse gas emission costs of the owners and operators incurred under this title, but not for costs associated with other related or unrelated market dynamics,

(2)

to ensure that imports from other countries, and, in particular, fast-growing developing countries, do not enjoy competitive advantages because of the carbon tax liability of domestic manufacturers, and therefore increase their emissions,

(3)

to encourage foreign countries to take substantial action with respect to their greenhouse gas emissions, and

(4)

to ensure that the measures described in this subpart are designed and implemented in a manner consistent with applicable international agreements to which the United States is a party.

9912. Definitions

In this part:

(1) Carbon leakage

The term carbon leakage means any substantial increase (as determined by the Secretary) in greenhouse gas emissions by entities located in other countries caused by a cost of production increase in the United States resulting from implementation of this title.

(2) Border tax adjustment

The term border tax adjustment means the levying of a tax on imported covered goods equivalent to the amount of tax paid pursuant to part 1 of this subtitle in the manufacture of comparable domestic manufactured goods, and the rebating of the tax paid pursuant to part 1 of this subtitle that has been paid on covered goods exported from the United States.

(3) Border tax adjustment rate

The term border tax adjustment rate means the amount of tax that would be paid on a covered good produced in the United States in the current year.

(4) Commissioner

The term Commissioner means the Commissioner of United States Customs and Border Protection.

(5) Covered good

The term covered good means a good that is—

(A)

entered under a heading or subheading of the Harmonized Tariff Schedule of the United States that corresponds to the NAICS code for an eligible industrial sector, as established in the concordance between NAICS codes and the Harmonized Tariff Schedule of the United States prepared by the United States Census Bureau, or

(B)

a manufactured item for consumption.

(6) Eligible industrial sector

The term eligible industrial sector means an industrial sector determined by the Secretary under section 9913.

(7) Industrial sector

The term industrial sector means any sector that—

(A)

is in the manufacturing sector (as defined in NAICS codes 31, 32, and 33), or

(B)

is part of, or an entire, sector that beneficiates or otherwise processes (including agglomeration) metal ores, including iron and copper ores, soda ash, and phosphate. The term industrial sector does not include any part of a sector that extracts fossil fuels, metal ores, soda ash, or phosphate.

(8) Manufactured item for consumption

The term manufactured item for consumption means any good—

(A)

that includes in substantial quantities one or more goods like the goods produced by an eligible industrial sector, and

(B)

for which the Secretary has determined, with the concurrence of the Commissioner, that the application of the border tax adjustment program pursuant to this part is technically and administratively feasible and appropriate to achieve the purposes of this part, taking into account the greenhouse gas intensity, and where appropriate the trade intensity, of the industrial sector that produces the good, as measured consistent with section 9913 and the ability of the producers to recover cost increases in the marketplace and other appropriate factors.

(9) NAICS

The term NAICS means the North American Industrial Classification System of 2002.

(10) Output

The term output means the total tonnage or other standard unit of production (as determined by the Secretary) produced by an entity in an industrial sector.

9913. Notification of foreign countries

(a) In general

As soon as practicable after the date of the enactment of the Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act, the President shall notify each foreign country—

(1)

requesting the foreign country to take appropriate measures to limit the greenhouse gas emissions of the foreign country, and

(2)

indicating that a border tax adjustment may apply to covered goods imported into and exported from the United States.

(b) Lists

(1) In general

Not later than 1 year after the date of the enactment of the Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act, the Secretary shall promulgate a rule designating, based on the criteria under subsection (c)(2), industrial sectors where covered products are liable for the border tax adjustment.

(2) Content

The list shall include the amount of the border tax adjustment rate for each covered good in the following calendar year pursuant to section 9914.

(3) Subsequent lists

Not later than January 31 of each calendar year after the calendar year in which the Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act is enacted, the Secretary shall publish in the Federal Register an updated version of the list published under paragraph (1).

(c) Eligible industrial sectors

(1) Presumptively eligible industrial sectors

(A) Eligibility criteria

(i) In general

(I)

Imported covered goods are liable under this part if they are produced in the United States in an industrial sector that is included in a 6-digit classification of the NAICS that meets the criteria in both clauses (ii) and (iii).

(II)

Exported covered goods are eligible under this part if they are produced in the United States in an industrial sector that is included in a 6-digit classification of the NAICS that meets the criteria in clauses (ii) and (iii).

(ii) Greenhouse gas intensity

As determined by the Secretary, an industrial sector meets the criteria of this clause if the United States industrial sector has a greenhouse gas intensity of at least 5 percent, calculated by dividing—

(I)

the number of metric tons of carbon dioxide equivalent greenhouse gas emissions (including direct emissions from fuel combustion, process emissions, and indirect emissions from the generation of electricity used to produce the output of the sector) of the sector based on data described in subparagraph (C), multiplied by the applicable rate in section 9901(b)(2), by

(II)

the value of the shipments of the sector, based on data described in subparagraph (C).

(iii) Trade intensity

As determined by the Secretary, an industrial sector meets the criteria of this clause if the industrial sector has a trade intensity of at least 15 percent, calculated by dividing—

(I)

the value of the total imports and exports of the sector, by

(II)

the value of the shipments plus the value of imports of the sector, based on data described in subparagraph (C).

(B) Metal and phosphate production classified under more than one NAICs code

For purposes of this section, the Secretary shall—

(i)

aggregate data for the beneficiation or other processing (including agglomeration) of metal ores, including iron and copper ores, soda ash, or phosphate with subsequent steps in the process of metal and phosphate manufacturing, regardless of the NAICS code under which the activity is classified, and

(ii)

aggregate data for the manufacturing of steel with the manufacturing of steel pipe and tube made from purchased steel in a nonintegrated process.

(C) Data sources

(i) Value of shipments

(I) In general

The Secretary shall determine the value of shipments under this subsection from data from the United States Census Annual Survey of Manufacturers.

(II) Average data available

The Secretary shall use the average of data from the most recent 3 years for which the data are available.

(III) Average data not available

If data described in subclause (II) are unavailable, the Secretary shall make a determination based on—

(aa)

data from the most detailed industrial classification level of the Manufacturing Energy Consumption Survey of the Energy Information Administration, and

(bb)

data from the most recent Economic Census of the United States.

(IV) Data not available for sector

If data from the Manufacturing Energy Consumption Survey or Economic Census are unavailable for any sector at the 6-digit classification level in the NAICS, the Secretary may use available Manufacturing Energy Consumption Survey or Economic Census data pertaining to a broader industrial category classified in the NAICS.

(V) Data not available for processing

If data relating to the beneficiation or other processing (including agglomeration) of metal ores (including iron and copper ores, soda ash, or phosphate) are not available from the specified data sources, the Secretary—

(aa)

shall use the best available Federal or State government data, and

(bb)

may use, to the extent necessary, representative data submitted by entities that perform the beneficiation or other processing (including agglomeration), in making a determination.

(ii) Imports and exports

(I) In general

The Secretary shall base the value of imports and exports under this subsection on United States International Trade Commission data.

(II) Average data available

The Secretary shall use the average of data from the three most recent years for which the data are available.

(III) Average data not available

If data from the United States International Trade Commission are unavailable for any sector at the 6-digit classification level in the NAICS, the Secretary may use United States International Trade Commission data pertaining to a broader industrial category classified in the NAICS.

(iii) Percentages

The Secretary shall round the greenhouse gas intensity and trade intensity percentages under subparagraph (A) to the nearest whole number.

(iv) Greenhouse gas emission calculations

When calculating the metric tons of carbon dioxide equivalent greenhouse gas emissions for each sector under subparagraph (A)(ii)(I), the Secretary—

(I)

shall use the best available data from the three most recent years for which the data are available, and

(II)

may, to the extent necessary with respect to a sector, use economic and engineering models and the best available information on technology performance levels for the sector.

(2) Administrative determination of additional eligible industrial sectors

(A) Updated trade intensity data

The Secretary shall designate as liable for the border tax adjustment rate on imported products under this part an industrial sector that—

(i)

met the greenhouse gas intensity criteria in paragraph (1)(A)(ii) as of the date of promulgation of the rule under paragraph (1), and

(ii)

meets the trade intensity criteria established under paragraph (1)(A)(iii), using data sources described in paragraph (1)(C) from any year after the passage of this Act.

(B) Individual showing petition

(i) Petition

In addition to designation under subparagraph (A), the owner or operator of an entity or a group of entities that collectively produce not less than 80 percent of the average annual value of shipments from within the sector of the group consistent with subclause (I), that manufacture similar products in an industrial sector may petition the Secretary to designate as eligible industrial sectors under this part an entity or a group of entities that—

(I)

represent a sector using a standard product classification, and

(II)

meet the respective import and/or export eligibility criteria in paragraph (1)(A)(i).

(ii) Data

In making a determination under this subparagraph, the Secretary shall consider—

(I)

data submitted by the petitioner,

(II)

data solicited by the Secretary from other entities in the sector, and

(III)

data specified in paragraph (1)(C).

(iii) Basis of subsector determination

(I) In general

Except as provided in subclause (II), the Secretary shall determine an entity or group of entities to be a subsector of a 6-digit section of the NAICS code based only on the products manufactured and not the industrial process by which the products are manufactured.

(II) Type of material

The Secretary may determine an entity or group of entities that manufacture a product from primarily virgin material to be a separate subsector from another entity or group of entities that manufacture the same product primarily from recycled material.

(iv) Use of most recent data

In determining whether to designate a sector or subsector as an eligible industrial sector under this subparagraph, the Secretary shall use the most recent data available from the sources described in paragraph (1)(C), rather than the data from the years specified in paragraph (1)(C), to determine the trade intensity of the sector or subsector, but only for determining the trade intensity.

(v) Final action

The Secretary shall take final action on a petition described in this subparagraph not later than 180 days after the date the completed petition is received by the Secretary.

(3) Cessation of qualifying activities

If, as determined by the Secretary, an industrial sector or a covered good within the sector is no longer liable to be designated under this section, the Commissioner shall cease to apply the border tax adjustment on the relevant covered goods with effect from January 1 of the following year.

9914. Border tax adjustment rate

(a) Establishment

The Secretary, with the concurrence of the Commissioner, shall, no later than the date that is one year after the date of the enactment of this section, promulgate regulations—

(1)

establishing the products which are liable for, and requiring payment of, the border tax adjustment rate,

(2)

establishing a general methodology for calculating the level of the border tax adjustment rate that a domestic importer of any covered good must submit and the rebate that an exporter will receive,

(3)

establishing an administrative process whereby any determination by the Secretary under this subsection may be appealed,

(4)

exempting from this section products that originate from—

(A)

any country that the United Nations has identified as among the least developed of developing countries, or

(B)

any country that the President has determined to be responsible for less than 0.5 percent of total global greenhouse gas emissions and less than 5 percent of global production in the eligible industrial sector,

(5)

specifying the procedures that the Commissioner will apply for the declaration and entry of covered goods with respect to the eligible industrial sector into the customs territory of the United States, and

(6)

establishing procedures that prevent circumvention of the carbon tax liability for covered goods that are manufactured or processed in more than one foreign country.

(b) Presidential discretion

The President may elect not to levy the border tax adjustment for an eligible industrial sector or for specific products within that sector if the President determines and certifies to Congress that the program would not be in the national interest, economic interest, or environmental interest of the United States.

(b) Effective date

The amendments made by this section shall apply to emissions after the later of December 31, 2025, and the date that is one year after the date regulations are promulgated under section 9914 of the Internal Revenue Code of 1986.

Sec. 10201. Establishment of the RISE Trust Fund

There is hereby created in the Treasury of the United States a trust fund to be known as the Rebuilding Infrastructure and Solutions for the Environment Trust Fund (hereafter in this Act referred to as the RISE Trust Fund), consisting of amounts paid into the Treasury pursuant to subtitle L of the Internal Revenue Code of 1986 (as added by title I of this Act), and 75 percent of such amounts are hereby appropriated and transferred to the RISE Trust Fund.

Sec. 10202. Appropriations from the RISE Trust Fund

Sec. 10203. State grants

Sec. 10211. Repeal of Federal motor vehicle and aviation fuel taxes

Sec. 10212. Modifications of qualifying advanced coal project credit

Sec. 10301. Amendments to the Clean Air Act

Sec. 10302. Frequent and chronic flooding mitigation and adaptation infrastructure projects

Sec. 10303. No preemption of State law

Nothing in this title shall preempt or supersede, or be interpreted to preempt or supersede, any State law or regulation.

Sec. 10321. Assistance to displaced workers in the energy sector

(a) Establishment

There is established a bipartisan commission to be known as the National Climate Commission (in this title referred to as the Commission).

(b) Membership

(c) Meetings

(a) Goals

The Commission shall set goals for emissions reduction to be achieved by 2031 and every five years thereafter through 2056, using such estimated rates of reduction as the Commission determines reflect the latest scientific findings of what is necessary to avoid the serious human health and environmental consequences of climate change.

(b) Review

The Commission shall assess the effect of existing policies and programs of the Federal Government with the aim of achieving the emissions reduction goals in subsection (a).

(c) Report

Beginning in 2032, and every 5 years thereafter, the Commission shall issue a report to the President, Congress, and the States, which shall include—

(a) Obtaining official data

(b) Assistance from Federal agencies

(c) Postal services

The Commission may use the United States mail in the same manner and under the same conditions as other departments and agencies of the United States.

(a) Private sector donations

The Secretary of Commerce may collect private sector donations for the purpose of carrying out this title, to be deposited in the Treasury and made available consistent with the authorization of appropriations in subsection (c).

(b) Transparency

The amounts and sources of all funds donated under subsection (a) and all spending by the Commission shall be made publicly available on the website of the Commission.

(c) Authorization of Appropriations

There is authorized to be appropriated to the Commission, for the purpose of carrying out the activities of this title, $5,000,000 for each of fiscal years 2027 through 2036.

(a) Detail of government employees

Any Federal Government employee may be detailed to the Commission without reimbursement from the Commission, and such detail shall be without interruption or loss of civil service status or privilege.

(b) Expert and consultant services

The Commission may procure the services of experts and consultants in accordance with section 3109 of title 5, United States Code, at rates not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code.

(1)

economic reasons;

(2)

supply chain failures;

(3)

delays and other complications relating to—

(4)

insufficient generic drugs and biosimilar biological products.

(1) In general

Not later than 1 year after the date of enactment of this Act, the Secretary of Health and Human Services, acting through the Commissioner of Food and Drugs, shall complete the study under subsection (a) and submit a report to the appropriate committees of the Congress on the results of such study.

(2) Recommendations

The report under paragraph (1) shall include recommendations for addressing the reasons for cancer drug shortages.

(1)

to improve the outreach, education, and communication efforts of the Department with respect to current or former defense communities located in the United States that have been affected by the contamination or leakage of perfluoroalkyl and polyfluoroalkyl substances (referred to in this section as PFAS); and

(2)

to serve as a dedicated liaison between the Department of State and local governments, advocacy organizations, and individual citizens in the current and former defense communities where the Department has ongoing or incomplete PFAS remediation projects.

(1) Composition

The Commission shall be composed of 20 members, including the following:

(2) Appointment

Members of the Commission shall be appointed not later than 30 days after the establishment of the Commission.

(3) Chair

Two of the members of the Commission appointed by the President shall be designated by the President to serve as Chair and Vice Chair of the Commission.

(1) Subpoena power

(2) Hearings and evidence

The Commission, or on the authority of the Commission, may for the purpose of carrying out this section hold such hearings, sit and act at such times and places, take testimony, and receive such evidence as the Commission may deem advisable.

(3) Oaths

The chair of the Commission, the vice chair of the Commission, or any voting member of the Commission designated by the chair may administer oaths to any witness.

(1) Initial meeting

The Commission shall meet and begin operations of the Commission as soon as practicable, but in any case not later than 180 days after the date of the enactment of this Act.

(2) Quorum

After its initial meeting, the Commission shall meet upon the call of the chair or a majority of its voting members. Ten voting members of the Commission shall constitute a quorum.

(3) Vacancy

Any vacancy in the Commission shall not affect its powers but shall be filled in the same manner in which the original appointment was made and within 90 days of the vacancy.

(1) Submission of proposed joint resolution

Not later than 60 days after the date on which the Commission submits a report to Congress under section 401(d), the President shall transmit to Congress a special message on the report, accompanied by a proposed joint resolution consisting of legislative language to implement the recommendations contained in such report.

(2) Requirements for preparation of proposed joint resolution

(3) Contents of special message

A special message transmitted under subsection (a) shall—

(4) Transmittal

The President shall submit the special message to the Secretary of the Senate if the Senate is not in session and to the Clerk of the House of Representatives if the House is not in session.

(5) Public availability

The President shall make a copy of the special message and the proposed joint resolution publicly available, including publicly available on a website of the President, and shall publish in the Federal Register a notice of the message and information on how it can be obtained.

(1) Qualifying legislation

(2) Consideration in the House of Representatives

(3) Expedited procedure in the Senate

(4) Amendment

A Commission joint resolution shall not be subject to amendment in either the Senate or the House of Representatives.

(5) Consideration by the other House

(6) Rules To coordinate action with other House

(7) Exercise of rulemaking power

This section is enacted by Congress—

(1)

review and enhance training and examinations procedures to improve the capabilities of anti-money laundering and countering the financing of terrorism programs to detect financial transactions relating to severe forms of trafficking in persons;

(2)

review and enhance procedures for referring potential cases relating to severe forms of trafficking in persons to the appropriate law enforcement agency; and

(3)

determine, as appropriate, whether requirements for financial institutions are sufficient to detect and deter money laundering relating to severe forms of trafficking in persons.

(1) In general

Not later than 270 days after the date of the enactment of this Act, the Interagency Task Force To Monitor and Combat Trafficking shall submit to the Committee on Financial Services and the Committee on the Judiciary of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs and the Committee on the Judiciary of the Senate, and the head of each Federal banking agency—

(2) Required recommendations

The recommendations under paragraph (1) shall include—

(1)

grant rulemaking authority to the Interagency Task Force To Monitor and Combat Trafficking; or

(2)

encourage financial institutions to deny services to victims of trafficking, victims of severe forms of trafficking in persons, or individuals not responsible for promoting severe forms of trafficking in persons.

(1)

the term Federal banking agency has the meaning given the term in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q));

(2)

the term severe forms of trafficking in persons has the meaning given such term in section 103 of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7102);

(3)

the term Interagency Task Force To Monitor and Combat Trafficking means the Interagency Task Force To Monitor and Combat Trafficking established by the President pursuant to section 105 of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7103); and

(4)

the term law enforcement agency means an agency of the United States, a State, or a political subdivision of a State, authorized by law or by a government agency to engage in or supervise the prevention, detection, investigation, or prosecution of any violation of criminal or civil law.

(1)

State and local law enforcement officers;

(2)

school safety personnel or school resource officers;

(3)

school safety advocates, which may include parents;

(4)

public, private, or parochial school teachers or administrators;

(5)

individuals with expertise in the area of ballistic shielding technology;

(6)

individuals with expertise in the field of school construction, including structural engineering or architecture; and

(7)

other stakeholders or experts the Director of CISA, in consultation with the Secretary of Homeland Security, determines appropriate.

(1)

Requirements for any reinforced door, including an identification or specification of appropriate technologies, mechanisms, covers, adhesives, or other qualities of such doors that may be utilized to better guarantee security within a classroom or primary or secondary school building.

(2)

Reinforced door performance standards that manufacturers and primary or secondary schools are required to satisfy.

(3)

The development, certification, testing, manufacturing, installation, and training relating to reinforced doors.

(4)

The appropriate term of service or lifetime of a reinforced door.

(5)

How requirements will ensure the effectiveness of a reinforced door in protecting against threats while not inhibiting the movement of law enforcement personnel in pursuit of a threat or the ability of students, teachers, and primary or secondary school personnel to safely evacuate in the event of an emergency.

(6)

Other considerations the Director of CISA determines appropriate.

(1) Access of unaffiliated voters to primaries

Each State shall permit an unaffiliated voter who is registered to vote in an election for Federal office held in the State to vote in any primary election for such office held in the State, except that the State shall not permit an unaffiliated voter to vote in primary elections for such office of more than one political party.

(2) Restrictions relating to unaffiliated voters

(1)

the State permits an unaffiliated voter who is registered to vote in an election for State or local office held in the State to vote in any primary election for such office held in the State, except that the State shall not permit an unaffiliated voter to vote in primary elections for such office of more than one political party;

(2)

the State applies the restrictions on sharing information relating to unaffiliated voters in primary elections for Federal office, as described in subsection (a)(2)(A), to information relating to unaffiliated voters in primary elections for State and local office; and

(3)

the State applies the restrictions on treating unaffiliated voters in primary elections for Federal office as members of, or as individuals who are otherwise affiliated with, a political party, as described in subsection (a)(2)(B), to unaffiliated voters in primary elections for State and local office.

(1) Payment of grants

If a State certifies to the Election Assistance Commission that the State is in compliance with the requirements of this section with respect to a fiscal year, the Commission shall make a payment to the State during that fiscal year and each of the 4 succeeding fiscal years in an amount equal to 2 percent of the total amount of requirements payments made to the State under section 251 of the Help America Vote Act of 2002 (52 U.S.C. 21001).

(2) Use of funds

A State shall use the payment received under this subsection to cover the costs of permitting unaffiliated voters who are registered to vote in elections for Federal, State, or local office held in the State to vote in any primary election for such office held in the State.

(3) Authorization of appropriations

There are authorized to be appropriated for fiscal year 2026 and each succeeding fiscal year such sums as may be necessary for grants under this subsection.

(1)

the terms election and Federal office have the meanings give such terms in section 301 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101);

(2)

the term primary election means an election (including a primary election held for the expression of a preference for the nomination of individuals for election to the office of President) held by any political party to nominate individuals who would appear on a general election ballot as a candidate for election for Federal office, including a convention or caucus of a political party which has authority to nominate such a candidate;

(3)

the term State has the meaning given such term in section 901 of the Help America Vote Act of 2002 (52 U.S.C. 21141); and

(4)

the term unaffiliated voter means an individual who is not registered to vote as a member of a political party or otherwise affiliated with a political party.

(A)

in clause (ii) by striking and at the end;

(B)

in clause (iii) by striking the period at the end and inserting ; and; and

(C)

by adding at the end the following:

(iv)

veterans.

(1)

by inserting (A) before The rate; and

(2)

by adding at the end the following new subparagraph:

(B)

A veteran who died from amyotrophic lateral sclerosis shall be treated as a veteran described in subparagraph (A) without regard for how long the veteran had such disease prior to death.

(C)

For purposes of the payment of compensation under this subsection by reason of the death of a veteran described in subparagraph (B), the term surviving spouse means a person who was married to the veteran for a continuous period of eight years or longer prior to the death of the veteran.

(1)

A comprehensive list of service-connected disabilities with high mortality rates.

(2)

Detailed information on the average life expectancy for persons with each such disability.