Sec. 601. Purposes; definitions
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/bill/115/hr/3314/ih/section-601·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The purposes of this title are— to ensure that the shift to a clean energy economy in the United States is not eroded by the transition to foreign countries of the manufacturing of goods in energy-intensive industrial sectors; to ensure the competitiveness of United States manufacturing and industry; to make trade a tool for the mitigation of emissions, rather than the source of a substantial increase, as determined by the National Climate Change Council, in greenhouse gas emissions by industrial entities located in foreign countries caused by an increased cost of production in the United States resulting from the implementation of this Act; to provide an incentive for high-emissions foreign countries to strengthen the climate regulations and address the greenhouse gas emissions of those countries; and to prevent an increase in greenhouse gas emissions from foreign countries as a result of direct and indirect compliance costs incurred under this title.
In this title: The term climate duty means a duty assessed by the United States on the importation into the customs territory of the United States of a covered good. The term covered good means a good that is entered under a heading or subheading of the Harmonized Tariff Schedule of the United States that corresponds to the North American Industrial Classification System code for an eligible industrial sector, as established in the concordance between North American Industrial Classification System codes and the Harmonized Tariff Schedule of the United States prepared by the United States Census Bureau.
The term eligible industrial sector means an industrial sector in the United States that is subject to a climate duty, as determined under section 602(a). The term energy-intensive , with respect to an industrial sector, means that the industrial sector has an energy intensity of not less than 5 percent, as calculated based on the quotient obtained by dividing, as determined using the average of the 3 most recent calendar years for which data are available— the cost of the electricity and fuel purchased by the industrial sector; by the total value of the sales of the industrial sector.
The term incremental cost means the increased cost of production of a covered good due to compliance with applicable energy and climate laws (including regulations) and subsidies of— the United States; or a foreign country. The term industrial sector means any sector that— is in the manufacturing sector (as defined in North American Industrial Classification System codes 31, 32, and 33); or beneficiates or otherwise processes (including through agglomeration) a metal ore, including— iron or copper ore; soda ash; and phosphate.
The term industrial sector does not include any sector involving only the extraction of— a metal ore; soda ash; or phosphate. The term trade-intensive , with respect to an industrial sector, means that not less than 15 percent of domestic consumption from the industrial sector is a result of importation, as calculated based on the quotient obtained by dividing, as determined using the average of the 3 most recent calendar years for which data are available— the value of the total imports of the industrial sector; by the number equal to the sum of— the number equal to the difference between— the domestic production of the industrial sector; and the exports of the industrial sector; and the value of the imports of the industrial sector.