Sec. 301. Carbon equivalency fee border adjustments for carbon pollution-intensive goods

437 words·~2 min read·/bill/114/s/2399/is/section-301

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There is imposed on each person importing a carbon pollution-intensive good into the United States a fee in an amount that is equal to the cost that a producer of a good that is comparable to the carbon pollution-intensive good (as determined by the Secretary of the Treasury, in consultation with the Administrator, the Secretary of State, and the Secretary of Energy) and is produced in the United States incurs as a result of— any fee imposed under section 196 of the Clean Air Act, as added by section 101 of this Act— paid by the producer of the comparable good with respect to a carbon-polluting substance used in the production of the comparable good; or paid by a person that imported a carbon-polluting substance used in the production of the comparable good; and any fee imposed under this subsection paid by a person that imported a carbon pollution-intensive good that was used in the production of the comparable good.

In determining the amount of the fee imposed under subsection

(a)with respect to a carbon pollution-intensive good, the Secretary of the Treasury shall— determine the amount of the fee annually; and determine different amounts for such goods— based on class of good and country of origin; and taking into account the quantity of greenhouse gas emissions released during the process of manufacturing such goods and transporting such goods from the country of origin to the United States. The Secretary of the Treasury shall establish a process for petitioning for adjustment of the fee imposed under subsection (a). The fee imposed under subsection

(a)shall cease to apply with respect to goods imported from a country at such time as, and to the extent that— in the case of a country that adopts and ratifies an international agreement requiring countries that emit greenhouse gases and produce carbon pollution-intensive goods for exportation to adopt substantially equivalent measures, that agreement takes effect; or in the case of a country that has not adopted and ratified such an agreement, the country has implemented substantially equivalent measures, as determined by the President; and the Secretary of the Treasury determines that the application of the fee with respect to imports from that country is no longer appropriate. The Secretary of the Treasury, in consultation with the Administrator, the Secretary of Commerce, and the Secretary of Energy, shall prescribe such regulations as are necessary to carry out this section. In this section, the terms carbon pollution-intensive good and substantially equivalent measure have the meanings given those terms in section 194 of the Clean Air Act, as added by section 101 of this Act.