Sec. 402. Carbon fee for aviation, maritime transportation, and rail

290 words·~1 min read·/bill/115/s/987/is/section-402

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In this section: The term carbon fee means the carbon fee imposed under subsection (b). The term carbon polluting substance means coal (including lignite and peat), petroleum and any petroleum product, or natural gas that, when combusted or otherwise used, will release greenhouse gas emissions. The term commercial aviation means any aircraft operation involving the transportation of passengers, cargo, or mail for hire. The term maritime transportation means the shipment of goods, cargo, and people by sea and other waterways.

The Secretary of the Treasury, in consultation with the Council, shall impose a carbon fee, in accordance with this section, on any owner or operator of an entity within the eligible sectors listed in subsection

(d)to transition those sectors away from fossil fuel usage. The amount of the carbon fee shall be assessed per ton of carbon dioxide equivalent (including carbon dioxide equivalent content of methane) of the carbon polluting substance used as fuel, as determined by the Council. In the case of a fraction of a ton of a carbon polluting substance, the carbon fee shall be the same fraction of the amount of the fee imposed on a whole ton of the carbon polluting substance. For purposes of this subsection, the amount of the carbon fee shall be not less than the social cost of carbon, as determined by the Administrator. An owner or operator of an entity shall be subject to a carbon fee if the entity is a part of— commercial aviation; maritime transportation; or rail. Funds collected under this section shall be used, as determined by the Council, to establish or fund programs, including those established under section 406, to assist eligible sectors described in subsection

(d)with transitioning away from fossil fuel usage.