[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10418 Introduced in House (IH)]

<DOC>






118th CONGRESS
  2d Session
                               H. R. 10418

   To cap the emissions of greenhouse gases through a requirement to 
 purchase carbon permits, to distribute the proceeds of such purchases 
            to eligible individuals, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2024

  Mr. Beyer introduced the following bill; which was referred to the 
 Committee on Energy and Commerce, and in addition to the Committee on 
   Ways and Means, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To cap the emissions of greenhouse gases through a requirement to 
 purchase carbon permits, to distribute the proceeds of such purchases 
            to eligible individuals, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Healthy Climate and Family Security 
Act of 2024''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Carbon dioxide and other greenhouse gas emissions 
        continue to rise.
            (2) The warming of our planet has led to more frequent, 
        dangerous and expensive extreme weather events, including heat 
        waves, storms, fires, droughts, floods and tornadoes.
            (3) A 2018 report by the Intergovernmental Panel on Climate 
        Change (IPCC) recommends that serious efforts be made to limit 
        global warming to 1.5 C, which would require that 
        CO<INF>2</INF> emissions fall by 45 percent below 2010 levels 
        by 2030, reaching net zero by the middle of this century.
            (4) The atmosphere is a common resource that belongs 
        equally to all.
            (5) Stabilizing the climate can and must be done in a way 
        that supports vibrant economic growth and a thriving middle 
        class.
            (6) Stabilizing the climate can and must be done in a way 
        that supports environmental justice by reducing pollution 
        affecting communities that have suffered disproportionately 
        from hazards arising from the extraction and combustion of 
        fossil fuels and supports community right-to-know reporting on 
        emissions from fossil fuel combustion.
            (7) Legislation to address climate change and accelerate 
        the transition to a clean energy economy must be fair, 
        transparent and built to last.

SEC. 3. AUCTION OF CARBON PERMITS AND DISTRIBUTION OF HEALTHY CLIMATE 
              DIVIDENDS.

    (a) In General.--The Internal Revenue Code of 1986 is amended by 
adding at the end the following new subtitle:

  ``Subtitle L--Auction of Carbon Permits and Distribution of Healthy 
                           Climate Dividends

``Chapter 101. Cap and Dividend Program Rules.
``Chapter 102. Healthy Climate Dividends.
``Chapter 103. Border Adjustments.

             ``CHAPTER 101--CAP AND DIVIDEND PROGRAM RULES

``Sec. 9901. Definitions.
``Sec. 9902. Carbon permits.
``Sec. 9903. Auctions.
``Sec. 9904. Compliance obligation.
``Sec. 9905. Penalty for noncompliance.
``Sec. 9906. Transfers.
``Sec. 9907. Banking and borrowing.
``Sec. 9908. Environmental justice.

``SEC. 9901. DEFINITIONS.

    ``For purposes of this subtitle:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.
            ``(2) Carbon permit.--The term `carbon permit' means a 
        carbon permit established by the Secretary under section 
        9902(a).
            ``(3) Covered entity.--The term `covered entity' means--
                    ``(A) in the case of crude oil--
                            ``(i) any producer of crude oil operating 
                        in the United States, and
                            ``(ii) any importer of crude oil, 
                        petroleum, or any petroleum product into the 
                        United States,
                    ``(B) in the case of coal--
                            ``(i) any coal mine operating in the United 
                        States, and
                            ``(ii) any importer of coal into the United 
                        States, and
                    ``(C) in the case of natural gas--
                            ``(i) any entity required to submit a 
                        report to the Energy Information Agency on Form 
                        176 by reason of delivering natural gas to an 
                        end user, and
                            ``(ii) any natural gas processor not 
                        described in clause (i) with respect to sales 
                        of natural gas in the United States.
            ``(4) Covered fuel.--The term `covered fuel' means crude 
        oil, natural gas, coal, or any other product derived therefrom 
        for use as a combustible fuel offered for sale in United States 
        markets.
            ``(5) Crude oil.--The term `crude oil' includes crude oil 
        condensates, natural gasoline, shale oil, any bitumen or 
        bituminous mixture, any oil derived from a bitumen or 
        bituminous mixture, and any oil derived from kerogen-bearing 
        sources.
            ``(6) Fair market value.--The term `fair market value' 
        means the average auction price for carbon permits during the 4 
        quarters immediately preceding a failure to surrender, when 
        required under section 9904, the required number of carbon 
        permits under such section.
            ``(7) State.--The term `State' means the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and any other 
        commonwealth, territory, or possession of the United States.
            ``(8) Vintage year.--The term `vintage year' means the 
        calendar year for which a carbon permit is established under 
        section 9902.
            ``(9) Co-pollutant.-- The term `co-pollutant' means--
                    ``(A) any criteria pollutant for which there are 
                national ambient air quality standards under section 
                109 of the Clean Air Act (42 U.S.C. 7409), and
                    ``(B) any precursor to such a criteria pollutant 
                which is released in fossil fuel combustion.
            ``(10) Frontline communities.--The term `frontline 
        communities' means locations in which minority populations and 
        low-income populations in the United States and its territories 
        and possessions, the District of Columbia, the Commonwealth of 
        Puerto Rico, and the Commonwealth of the Mariana Islands are 
        exposed to disproportionately high and adverse human health or 
        environmental effects of air pollution.

``SEC. 9902. CARBON PERMITS.

    ``(a) In General.--The Secretary, in consultation with the 
Administrator, shall establish a separate quantity of carbon permits 
for calendar year 2025 and each calendar year thereafter, as set forth 
under subsection (b).
    ``(b) Emissions Reduction Schedule.--
            ``(1) In general.--The quantity of carbon permits 
        established by the Secretary, in consultation with the 
        Administrator, under subsection (a) for any calendar year 
        before 2050 that is between the nearest target years specified 
        in paragraph (2) preceding and succeeding such calendar year 
        shall be the quantity of such permits that represents an equal, 
        pro rata reduction from the preceding year to the succeeding 
        year.
            ``(2) Targets.--
                    ``(A) Initial target.--The quantity of carbon 
                permits established for 2025 shall be equal to 15 
                percent less than the number of metric tons of carbon 
                dioxide emitted in the United States in 2015.
                    ``(B) Decadal targets.--The quantity of carbon 
                permits established for--
                            ``(i) 2027 shall be equal to 35 percent 
                        less than the number of metric tons of carbon 
                        dioxide emitted in the United States in 2015,
                            ``(ii) 2030 shall be equal to 50 percent 
                        less than the number of metric tons of carbon 
                        dioxide emitted in the United States in 2015,
                            ``(iii) 2038 shall be equal to 60 percent 
                        less than the number of metric tons of carbon 
                        dioxide emitted in the United States in 2015,
                            ``(iv) 2044 shall be equal to 80 percent 
                        less than the number of metric tons of carbon 
                        dioxide emitted in the United States in 2015, 
                        and
                            ``(v) 2050 shall be equal to 90 percent 
                        less than the number of metric tons of carbon 
                        dioxide emitted in the United States in 2015.
            ``(3) Reports.--
                    ``(A) Calendar year 2050.--In 2050 the Secretary, 
                after consultation with the Administrator, shall submit 
                a report to Congress making recommendations concerning 
                the program established under this subtitle for years 
                after 2050, including the quantity of carbon permits to 
                be established and any reductions that may be necessary 
                to ensure a net zero carbon economy and a healthy 
                climate.
                    ``(B) Averting catastrophic climatic impact.--Not 
                later than 4 years after the date of the enactment of 
                this section, and every 4 years thereafter, the 
                Secretary shall report to Congress on any recommended 
                revisions to the decadal targets under paragraph (2) 
                and the basis for those recommendations if the 
                Secretary, after consultation with the Administrator, 
                determines the emissions reductions targets under this 
                subsection should be further tightened in order to--
                            ``(i) reach a net-zero carbon economy by 
                        2050, or
                            ``(ii) avert catastrophic climate impacts.
    ``(c) Identification Numbers.--The Secretary shall assign to each 
carbon permit established under subsection (a) a unique identification 
number that includes the vintage year for that carbon permit.
    ``(d) Legal Status of Carbon Permits.--
            ``(1) In general.--A carbon permit does not constitute a 
        property right.
            ``(2) Termination or limitation.--Nothing in this subtitle 
        or any other provision of law shall be construed to limit or 
        alter the authority of the United States, including the 
        Secretary acting pursuant to statutory authority, to terminate 
        or limit a carbon permit.
            ``(3) Other provisions unaffected.--Nothing in this 
        subtitle relating to carbon permits issued under this section 
        shall affect the application of any other provision of law to a 
        covered entity (including the Clean Air Act), or the 
        responsibility for a covered entity to comply with any such 
        provision of law. Regional and State greenhouse gas initiatives 
        are not preempted by this subtitle.
    ``(e) Regulations.--Not later than December 31, 2025, the Secretary 
shall promulgate regulations to carry out the provisions of this 
subtitle.

``SEC. 9903. AUCTIONS.

    ``(a) Periodic Auctions.--The Secretary shall conduct periodic 
public auctions of carbon permits established under section 9902(a). 
The Secretary shall conduct at least 1 such auction in each calendar 
quarter of each year for which carbon permits are established, and 
shall distribute the available permits for each such year pro rata 
among the quarters of such year.
    ``(b) Auction Rules.--The Secretary shall--
            ``(1) limit auction participation only to covered entities,
            ``(2) establish a limit on the amount of carbon permits 
        that can be purchased by a single entity at each auction and an 
        aggregate limit on the total amount of permits that can be held 
        by a single entity at any one time that--
                    ``(A) reflects anticipated sector and participant 
                demand,
                    ``(B) prevents speculation, manipulation, or 
                hoarding of permits, and
                    ``(C) does not interfere with normal market 
                competition, and
            ``(3) set a minimum permit price at the initial auction of 
        $40 per ton of carbon dioxide that will be released when the 
        covered fuel is burned, increase this minimum price by $10 in 
        each successive year and adjust for inflation, and have the 
        authority to set higher minimum permit prices.
    ``(c) Unsold Permits.--Any carbon permit unsold at the auction at 
which it is offered shall expire.

``SEC. 9904. COMPLIANCE OBLIGATION.

    ``(a) In General.--Not later than April 1, 2025, and April 1 of 
each year thereafter, each covered entity shall surrender to the 
Secretary a quantity of carbon permits at least as great as the number 
of metric tons of carbon dioxide that the Secretary, in consultation 
with the Administrator, determines would be emitted by the combustion 
of covered fuels with respect to which the covered entity made the 
first sale in United States markets during the previous calendar year.
    ``(b) Use Treated as Sale.--For purposes of subsection (a), 
consumption for an emitting use by the covered entity of covered fuels 
produced by the covered entity shall be treated as a first sale.

``SEC. 9905. PENALTY FOR NONCOMPLIANCE.

    ``(a) In General.--Any covered entity that fails for any year to 
surrender, by the deadline described in section 9904, one or more of 
the carbon permits due pursuant to such section shall be required to 
surrender permits in order to meet this past due obligation and shall 
be liable for payment to the Secretary of a penalty in the amount 
described in subsection (b).
    ``(b) Amount.--The amount of a penalty required to be paid under 
subsection (a) shall be equal to the product obtained by multiplying--
            ``(1) the number of carbon permits that the covered entity 
        failed to surrender by the deadline, by
            ``(2) 3 times the fair market value of carbon permits 
        issued for emissions occurring in the calendar year for which 
        the carbon permits were due.
    ``(c) Timing.--A penalty required under this section shall be 
immediately due and payable to the Secretary, without demand, in 
accordance with regulations promulgated by the Secretary, which shall 
be issued not later than 1 year after the date of enactment of this 
subtitle.
    ``(d) No Effect on Liability.--A penalty due and payable by the 
covered entity under this section shall not diminish the liability of 
the covered entity for any fine, penalty, or assessment against the 
covered entity for the same violation under any other provision of law.
    ``(e) Penalty Not Deductible.--No deduction shall be allowed under 
subtitle A for a penalty paid under this section.

``SEC. 9906. TRACKING.

    ``The regulations promulgated under section 9902(e) shall include a 
system for issuing, recording, holding, and tracking carbon permits 
that shall specify all necessary procedures and requirements for an 
orderly and competitive functioning of the carbon permit system. Such 
regulations shall provide for appropriate publication of the 
information in the system on the internet.

``SEC. 9907. BANKING.

    ``(a) Banking.--A carbon permit may be used to meet the compliance 
obligation requirements of section 9904 for emissions only in the 
permit's vintage year, the year prior, or the year following. At least 
80 percent of permits used by an entity to meet its compliance 
obligation for a year must be of that year's vintage. The Secretary 
shall have the authority to establish stricter requirements for the 
percentage of the compliance obligation for a year that must be met 
with permits of that year's vintage, and to establish penalties for 
failure to comply.
    ``(b) Expiration.--A carbon permit shall expire when--
            ``(1) it is surrendered to the Secretary under section 
        9904,
            ``(2) it has been held by a covered entity and has not been 
        surrendered to the Secretary under section 9904 within 18 
        months after the end of its vintage year, or
            ``(3) the Secretary determines by regulation that 
        expiration is necessary to ensure the authenticity and 
        integrity of carbon permits or the carbon permit tracking 
        system.

``SEC. 9908. ENVIRONMENTAL JUSTICE.

    ``(a) In General.--This chapter shall be implemented to the extent 
practicable to ensure that reductions in carbon emissions are 
accompanied by commensurate reductions in emissions of co-pollutants 
from fossil fuel combustion that impact frontline communities.
    ``(b) Report on Air Quality Methods Development.--Not later than 1 
year after the date of enactment of this section, the Administrator 
shall submit to Congress a report detailing efforts to increase air 
quality monitoring deployment and technical assistance at the Federal, 
State, local, and tribal level.
    ``(c) Air Quality Monitoring in Frontline Communities.--The 
Administrator (or the Administrator's delegate) is authorized to 
provide for trends monitoring of ambient air quality in frontline 
communities and monitoring of co-pollutant emissions from sources 
located in or near such communities that impact their pollution burden. 
Not later than 3 years after the date of the enactment of this section, 
any information from such monitors shall be recorded and reported at 
the level of monitor and pollutant, and made available to the public to 
support effective community participation in the making of 
environmental policies.
    ``(d) Environmental Justice Guarantee.--In cases where co-pollutant 
emissions impacting frontline communities have not declined at a rate 
equal to the carbon dioxide emissions targets established in section 
9902(b)(2), the Administrator is authorized to implement or promulgate 
additional regulatory measures to ensure such reductions.
    ``(e) Environmental Justice Review.--Not later than 4 years after 
the date of enactment of this section, and annually thereafter, the 
Administrator shall implement an annual review to determine frontline 
communities, evaluate the effects of the enactment of this chapter on 
environmental justice, and recommend further corrective measures if 
needed.
    ``(f) Appropriations.--Out of any money in the Treasury not 
otherwise appropriated, there shall be appropriated such sums as are 
necessary to carry out the purposes of this section, to remain 
available until expended.

                ``CHAPTER 102--HEALTHY CLIMATE DIVIDENDS

``Sec. 9911. Healthy Climate Trust Fund.
``Sec. 9912. Healthy Climate Dividend Payments.
``Sec. 9913. Transparency.

``SEC. 9911. HEALTHY CLIMATE TRUST FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the `Healthy Climate Trust 
Fund', consisting of such amounts as may be appropriated to such trust 
fund as provided for in this section.
    ``(b) Transfers.--
            ``(1) Proceed amounts.--There are appropriated to the 
        Healthy Climate Trust Fund amounts equivalent to funds received 
        as proceeds under section 9903.
            ``(2) Penalty amounts.--There are appropriated to the 
        Healthy Climate Trust Fund amounts equivalent to funds received 
        as penalties under section 9905.
    ``(c) Expenditures.--
            ``(1) Administrative expenses.--Out of any amounts in the 
        Treasury not otherwise appropriated, there shall be 
        appropriated such sums as are necessary to pay the 
        administrative expenses necessary to carry out this chapter.
            ``(2) Healthy climate dividend payments.--Amounts in the 
        Healthy Climate Trust Fund not used under paragraph (1) for any 
        month shall be available for making Healthy Climate Dividend 
        Payments under section 9912.

``SEC. 9912. HEALTHY CLIMATE DIVIDEND PAYMENTS.

    ``(a) In General.--For purposes of this section:
            ``(1) Healthy climate dividend payment.--The term `Healthy 
        Climate Dividend Payment' means the individual pro rata share, 
        as determined by the Secretary, of amounts available for any 
        quarter in the Healthy Climate Trust Fund under section 
        9911(c)(2). The amounts so available for any quarter shall be 
        equal to the proceeds from auctions conducted under section 
        9903 in the preceding calendar quarter.
            ``(2) Eligible individual.--
                    ``(A) In general.--The term `eligible individual' 
                means, with respect to any quarter, any individual with 
                a valid social security number (other than a 
                nonresident alien individual) who is lawfully present 
                in the United States for such quarter, as determined 
                and verified by the Secretary in consultation with any 
                other Federal entity the Secretary determines 
                appropriate.
                    ``(B) Opt out.--An individual may elect not to be 
                treated as an eligible individual.
    ``(b) Payment of Healthy Climate Dividend.--From amounts made 
available under section 9911(c)(2), the Secretary shall make a Healthy 
Climate Dividend Payment not later than the end of the calendar quarter 
following the calendar quarter in which such amounts are appropriated 
to the Healthy Climate Trust Fund under section 9911 to each eligible 
individual for that quarter. Such payments shall be made by electronic 
means to the maximum extent practicable.
    ``(c) Exclusion From Gross Income.--Gross income shall not include 
any Healthy Climate Dividend paid under this section.
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
and other guidance as may be necessary or appropriate to carry out this 
section.

``SEC. 9913. TRANSPARENCY.

    ``(a) Report to Congress.--Not later than June 30, 2026, and at 
least annually thereafter, the Secretary shall transmit to Congress a 
report accounting for the disposition of amounts in the Healthy Climate 
Trust Fund in the previous calendar year.
    ``(b) Healthy Climate Trust Fund Website.--Not later than 90 days 
after the date of the enactment of this subtitle, the Secretary shall 
establish and maintain a website to provide the public with information 
on the disposition of any amounts in the Healthy Climate Trust Fund.

                   ``CHAPTER 103--BORDER ADJUSTMENTS

``Sec. 9921. Carbon equivalency fee.
``Sec. 9922. Definitions.
``Sec. 9923. Sense of Congress.

``SEC. 9921. CARBON EQUIVALENCY FEE.

    ``(a) Imports.--The Secretary shall impose carbon equivalency fees 
to be collected by the Commissioner responsible for U.S. Customs and 
Border Control on imports of carbon-intensive goods. The amount of the 
carbon equivalency fee shall be equal to the cost that domestic 
producers of a comparable carbon-intensive good incur as a result of--
            ``(1) prices paid in the acquisition of carbon permits by 
        covered entities under this subtitle, and
            ``(2) carbon equivalency fees paid by importers of carbon-
        intensive goods used in the production of the comparable 
        carbon-intensive good.
    ``(b) Payments to Exporters.--The Secretary shall pay without 
interest to entities exporting from the United States carbon-intensive 
goods produced in the United States. The amount of the payment shall be 
equal to the cost that domestic producers of the carbon-intensive good 
incur as a result of--
            ``(1) prices paid in the acquisition of carbon permits by 
        covered entities under this subtitle, and
            ``(2) carbon equivalency fees paid by importers of carbon-
        intensive goods used in the production of the comparable 
        carbon-intensive good.
    ``(c) Expiration.--This section shall cease to have effect at such 
time as and to the extent that--
            ``(1) an international agreement requiring countries that 
        emit greenhouse gases and produce carbon-intensive goods for 
        export markets to adopt equivalent measures comes into effect, 
        or
            ``(2) the country of export has implemented equivalent 
        measures, as determined by the Secretary, in consultation with 
        the Secretary of State.

``SEC. 9922. DEFINITIONS.

    ``In this chapter:
            ``(1) Carbon-intensive good.--The term `carbon-intensive 
        good' means a good that, as identified by the Secretary, in 
        consultation with the Administrator, by rule--
                    ``(A) is a primary product, or
                    ``(B) is a manufactured item in which one or more 
                primary products are inputs and the cost of production 
                of which in the United States is significantly 
                increased by reason of the requirements under this 
                subtitle.
            ``(2) Primary product.--The term `primary product' means--
                    ``(A) iron, steel, steel mill products (including 
                pipe and tube), aluminum, cement, glass (including 
                flat, container, and specialty glass and fiberglass), 
                pulp, paper, chemicals, or industrial ceramics, and
                    ``(B) any other manufactured product that the 
                Secretary, in consultation with the Administrator, 
                determines--
                            ``(i) is sold 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 primary product identified in 
                        subparagraph (A).
            ``(3) Equivalent measure.--The term `equivalent measure' 
        means a tax, or other regulatory requirement that imposes a 
        cost, on manufacturers of carbon-intensive goods located 
        outside the United States, by reason of greenhouse gas 
        emissions in the production of such goods by such 
        manufacturers, approximately equal to the cost imposed by this 
        subtitle on manufacturers of comparable carbon-intensive goods 
        located in the United States.

``SEC. 9923. SENSE OF CONGRESS.

    ``It is the sense of Congress that the United States should work 
proactively under the United Nations Framework Convention on Climate 
Change and in other appropriate fora, to establish binding agreements 
committing all major greenhouse gas emitting countries and countries 
with globally competitive producers of carbon-intensive goods to 
contribute equitably to the reduction of global greenhouse gas 
emissions on a schedule and order of magnitude necessary to stabilize 
the climate.''.
    (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:

  ``Subtitle L. Auction of Carbon Permits and Distribution of Healthy 
                         Climate Dividends.''.

SEC. 4. NON-AUCTION GREENHOUSE GASES.

    (a) Definitions.--In this section:
            (1) The term ``Administrator'' means the Administrator of 
        the Environmental Protection Agency.
            (2) The term ``non-auction greenhouse gas'' refers to the 
        gases included on the list in effect under subsection (b).
    (b) List of Non-Auction Greenhouse Gases.--
            (1) Initial list.--Not later than 2 years after the date of 
        the enactment of this Act, the Administrator, by rule, shall 
        finalize and publish a list that--
                    (A) consists of the anthropogenically emitted gases 
                that are determined by the Administrator to contribute 
                to global warming; and
                    (B) excludes gases to the extent they are--
                            (i) carbon dioxide emitted by the 
                        combustion of a covered fuel (as such term is 
                        defined in section 9901 of the Internal Revenue 
                        Code of 1986, as added by section 3(a) of this 
                        Act); or
                            (ii) directly attributable to the 
                        production of animals for food or food 
                        products.
            (2) Updates.--The Administrator shall periodically review 
        and, as appropriate, update the list under paragraph (1).
    (c) Regulations.--
            (1) In general.--Under the authorities vested in the 
        Administrator by the Clean Air Act (42 U.S.C. 7401 et seq.) and 
        any other applicable law (other than this section), the 
        Administrator shall promulgate regulations addressing the 
        contribution of non-auction greenhouse gases to global warming.
            (2) International competitiveness.--In promulgating 
        regulations under this subsection, the Administrator shall take 
        into consideration the effect of such regulations on the 
        international competitiveness of businesses and industries of 
        the United States.
    (d) Schedule.--
            (1) In general.--The regulations under subsection (c) shall 
        ensure that--
                    (A) not later than 4 years after the date of 
                enactment of this Act, requirements take effect to 
                regulate sources which, collectively, emit not less 
                than 25 percent of non-auction greenhouse gases emitted 
                in the United States;
                    (B) not later than 6 years after the date of 
                enactment of this Act, requirements take effect to 
                regulate sources which, collectively, emit not less 
                than 50 percent of non-auction greenhouse gases emitted 
                in the United States;
                    (C) not later than 8 years after the date of 
                enactment of this Act, requirements take effect to 
                regulate sources which, collectively, emit not less 
                than 75 percent of non-auction greenhouse gases emitted 
                in the United States; and
                    (D) not later than 10 years after the date of 
                enactment of this Act, requirements take effect to 
                regulate sources which, collectively, emit 100 percent 
                of non-auction greenhouse gases emitted in the United 
                States.
            (2) Baseline.--The percentages specified in paragraph (1) 
        shall be applied relative to the aggregate quantity of non-
        auction greenhouse gases emitted in the United States during 
        the calendar year in which the initial list under subsection 
        (b)(1) is required to be finalized by such subsection.
    (e) Priorities.--In determining priorities for regulating the 
emissions of non-auction greenhouse gases under subsection (c), the 
Administrator shall consider--
            (1) the degree to which the gases involved contribute to 
        global warming; and
            (2) the speed with which a given reduction would contribute 
        to stabilizing the climate.
    (f) Citizen Suits.--The provisions of section 304 of the Clean Air 
Act (42 U.S.C. 7604) shall apply with respect to a violation of a 
requirement under this section, or the failure of the Administrator to 
perform a non-discretionary act or duty under this section, to the same 
extent and in the same manner as such provisions apply with respect to 
a violation described in subsection (a) of such section 304 or a 
failure to perform a non-discretionary act or duty described in such 
subsection.
    (g) Report to Congress.--Not later than 2 years after the date of 
the enactment of this Act, the Administrator shall submit a report to 
the Congress identifying any additions or modifications to statutory 
provisions which are needed for the Administrator to effectively 
address the contribution of non-auction greenhouse gases to global 
warming.

SEC. 5. DISCLOSURE OF INFORMATION.

    (a) Limited Disclosure of Identity.--Subsection (l) of section 6103 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new paragraph:
            ``(23) Limited disclosure of identity information relating 
        to healthy climate dividend payments.--
                    ``(A) Department of the treasury.--Information 
                regarding taxpayer identity with respect to individuals 
                shall, without written request, be open to inspection 
                by or disclosure to officers and employees of the 
                Department of the Treasury whose official duties 
                require such inspection or disclosure for purposes of 
                section 9912.
                    ``(B) Commissioner of social security.--The 
                Commissioner of Social Security shall, on written 
                request, disclose to officers and employees of the 
                Department of the Treasury information regarding 
                taxpayer identity which has been disclosed to the 
                Social Security Administration as provided by paragraph 
                (1) or (5).
                    ``(C) Restriction on disclosure.--Information 
                disclosed under this paragraph shall be disclosed only 
                for purposes of, and to the extent necessary in, 
                carrying out section 9912.''.
    (b) Conforming Amendments.--Section 6103(p)(3)(A) of the Internal 
Revenue Code of 1986 is amended by striking ``or (18)'' and inserting 
``(18), or (23)''.

SEC. 6. PRESERVATION OF REMEDIES.

    (a) In General.--Nothing in this Act preempts, displaces, or 
restricts any State or Federal common law or statutory rights that 
create a remedy for civil relief, including those for civil damages, or 
that create a penalty for criminal conduct.
    (b) Claims Related to Fossil Fuels and Climate Change.--
Notwithstanding any other provision of law, nothing in this Act, the 
Clean Air Act (42 U.S.C. 7401 et seq.), or Federal common law preempts, 
displaces, or restricts any right or remedy of any person, State, city, 
county, or local or Tribal government under State or local statute, 
ordinance, or common law related to any allegation of--
            (1) deception concerning the effects of fossil fuels on 
        climate change;
            (2) damage or injury resulting from the role of fossil 
        fuels in contributing to climate change; or
            (3) the failure to avoid any damage or injury related to--
                    (A) climate change, including claims for nuisance, 
                trespass, design defect, negligence, failure to warn, 
                or deceptive or unfair practices; and
                    (B) claims for injunctive, declaratory, monetary, 
                or other relief.

SEC. 7. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the date of 
the enactment of this Act.
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