[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5047 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 5047
To require carbon scoring by the Congressional Budget Office.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 12, 2024
Mr. Whitehouse (for himself, Mr. Van Hollen, Mr. Welch, Mr. Padilla,
Ms. Warren, Mr. Heinrich, Mr. Schatz, and Mr. Markey) introduced the
following bill; which was read twice and referred to the Committee on
the Budget
_______________________________________________________________________
A BILL
To require carbon scoring by the Congressional Budget Office.
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 ``Carbon Scoring Act of 2024''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The function of the Congressional Budget Office is to
provide the Committee on the Budget of the Senate and the
Committee on the Budget of the House of Representatives with
information on budget authority, outlays, revenues, and
changing conditions that might impact the Federal budget and
the legislative activities of Congress.
(2) Unforeseen economic shocks, such as the 2008 mortgage
crisis and the COVID-19 pandemic, have contributed greatly to
the public debt of the Federal Government.
(3) Climate change poses systemic risks to the financial
system of the United States.
(4) The increased severity and frequency of extreme weather
events caused by climate change costs the United States economy
an estimated $150,000,000,000 every year, and the cost is
growing.
(5) Predicted economic shocks from climate change could
cost the economy of the United States $14,500,000,000,000 over
the next 50 years, reduce the gross domestic product of the
United States by 10 percent by the end of the century, and add
trillions of dollars to the public debt of the Federal
Government.
(6) Current damages associated with climate change are
straining the Federal budget and straining insurance and home
mortgage markets from California to Florida.
(7) The exacerbation of extreme weather, drought, and
warming is undermining agricultural yields, the durability of
infrastructure, and supply chain reliability, all of which
contribute to rising consumer prices.
(8) Policies that limit greenhouse gas emissions could
offer long-term savings for the Federal budget.
SEC. 3. GREENHOUSE GAS EMISSIONS MODELING CAPACITY AND REPORTING.
(a) In General.--Section 202 of the Congressional Budget Act of
1974 (2 U.S.C. 602) is amended by adding at the end the following:
``(h) Greenhouse Gas Emissions Modeling.--
``(1) Definitions.--In this subsection:
``(A) Director.--The term `Director' means the
Director of the Congressional Budget Office.
``(B) Greenhouse gas.--The term `greenhouse gas'
has the meaning given that term in section 211(o)(1) of
the Clean Air Act (42 U.S.C. 7545(o)(1)).
``(2) Establishing an emissions modeling capacity.--
``(A) In general.--The Director shall prepare and
maintain economic models that can provide estimates of
the effect of various policies on greenhouse gas
emissions--
``(i) for the power sector, by not later
than 1 year after the date of enactment of the
Carbon Scoring Act of 2024;
``(ii) for transportation, by not later
than January 1, 2026;
``(iii) for industry, by not later than
January 1, 2028;
``(iv) for buildings, by not later than
January 1, 2030; and
``(v) for all other emitting sectors, as
soon as is practicable.
``(B) Annual reports.--Not later than December 31,
2025, and December 31 of each year thereafter, the
Director shall publish a report that--
``(i) provides an overview of the
greenhouse gas emissions modeling capabilities
of the Congressional Budget Office;
``(ii) discusses any updates made to models
related to the greenhouse gas emissions
estimating function of the Congressional Budget
Office; and
``(iii) discusses how any updates made to
models affect the emissions baseline required
under paragraph (3).
``(C) Ongoing improvement.--The Director shall work
to continually improve the accuracy and granularity of
the economic models described in subparagraph (A).
``(D) Existing federal resources.--In preparing
economic models under this paragraph, the Director may,
where applicable, consider using modeling resources
developed by the Federal Government, such as the
National Energy Modeling System published by the Energy
Information Administration.
``(3) Emissions baseline.--Not later than February 15,
2025, and February 15 of each year thereafter, the Director
shall develop and publish a detailed estimate of greenhouse gas
emissions in the United States during the year during which the
report is issued and each fiscal year thereafter through the
last fiscal year covered by the most recent baseline prepared
in accordance with section 257, based on laws enacted through
the date of the report and taking into account projected
economic factors.
``(4) Prioritization of greenhouse gasses.--For purposes of
economic models, emissions baselines, and greenhouse gas
emissions estimates under paragraphs (2) and (3) of this
subsection and section 402A, the Director--
``(A) shall make best efforts to consider all
greenhouse gas emissions for any economic model,
emissions baseline, or greenhouse gas emissions
estimate prepared on or after the date of enactment of
the Carbon Scoring Act of 2024; and
``(B) shall consider--
``(i) carbon dioxide for any economic
model, emissions baseline, or greenhouse gas
emissions estimate prepared on or after the
date of enactment of the Carbon Scoring Act of
2024;
``(ii) methane for any economic model,
emissions baseline, or greenhouse gas emissions
estimate prepared on or after January 1, 2027;
and
``(iii) all greenhouse gas emissions for
any economic model, emissions baseline, or
greenhouse gas emissions estimate prepared on
or after January 1, 2030.''.
(b) Emissions Estimates by Congressional Budget Office.--
(1) In general.--Title IV of the Congressional Budget Act
of 1974 (2 U.S.C. 651 et seq.) is amended by inserting after
section 402 the following:
``SEC. 402A. EMISSIONS ESTIMATES BY CONGRESSIONAL BUDGET OFFICE.
``(a) Definitions.--In this section:
``(1) Director.--The term `Director' means the Director of
the Congressional Budget Office.
``(2) Emissions baseline.--The term `emissions baseline'
means an estimate of greenhouse gas emissions prepared under
section 202(h)(3).
``(3) Greenhouse gas.--The term `greenhouse gas' has the
meaning given that term in section 211(o)(1) of the Clean Air
Act (42 U.S.C. 7545(o)(1)).
``(4) Greenhouse gas-related provision.--The term
`greenhouse gas-related provision' means a provision that meets
any of the following conditions:
``(A) Creates, raises, or lowers a tax or tax
credit on any aspect of fuel production or usage, power
production or usage, the emission or capture of a
greenhouse gas, or a technology or a direct alternative
to a technology that uses fuel.
``(B) Otherwise assigns a dollar value to the
emission of a greenhouse gas or to the sale or use of a
product whose combustion or leakage leads to an
emission of a greenhouse gas.
``(C) Sets a performance standard or cap based on--
``(i) the emission of a greenhouse gas; or
``(ii) the use of a product--
``(I) that directly emits
greenhouse gases; or
``(II) whose combustion, leakage,
or degradation leads to an emission of
a greenhouse gas.
``(5) Relevant committees.--The term `relevant committees'
means the Committee on the Budget of the Senate, the Committee
on the Budget of the House of Representatives, the committee of
the Senate with jurisdiction of the relevant bill or joint
resolution, and the committee of the House of Representatives
with primary jurisdiction of the relevant bill or joint
resolution.
``(6) Significant budgetary effect.--The term `significant
budgetary effect', with respect to a bill or joint resolution,
means that the Director estimates the bill or joint resolution
will increase or decrease annual outlays or revenues by not
less than $500,000,000 in any fiscal year covered by the most
recent baseline under section 257.
``(7) Social cost of a greenhouse gas.--The term `social
cost of a greenhouse gas' means the monetary value of the net
harm to society from emitting a metric ton of a greenhouse gas
into the atmosphere in a given year, as determined by the
Director based on the best and most recent science that, for
carbon dioxide, methane, and nitrous oxide, is not less than
the amounts listed for those gases using a near-term Ramsey
discount rate of 2 percent in the report of the Environmental
Protection Agency entitled `Report on the Social Cost of
Greenhouse Gases: Estimates Incorporating Recent Scientific
Advances', dated November 2023.
``(b) Estimates.--
``(1) In general.--To the extent practicable, the Director
shall prepare and submit to the relevant committees a
greenhouse gas emissions estimate with respect to any bill or
joint resolution ordered reported by a committee of the Senate
or the House of Representatives--
``(A) that--
``(i) would have a significant budgetary
effect; and
``(ii) contains 1 or more greenhouse gas-
related provisions; or
``(B) for which the Director previously estimated
the effects of the greenhouse gas-related provisions of
the bill or joint resolution.
``(2) Contents.--A greenhouse gas emissions estimate under
paragraph (1) with respect to a bill or joint resolution
shall--
``(A) provide an estimate of the effects of each
greenhouse gas-related provision in the bill or joint
resolution on greenhouse gas emissions with respect to
the year during which the greenhouse gas-related
provision takes effect and each fiscal year covered by
the most recent emissions baseline, including an
estimate of the change in greenhouse gas emissions
relative to the most recent emissions baseline;
``(B) provide an estimate of the climate-related
costs or savings of each greenhouse gas-related
provision in the bill or joint resolution, which shall
be calculated as the sum of the products obtained by
multiplying the change in the emission of each
greenhouse gas relative to the most recent emissions
baseline, as described in subparagraph (A), by the
social cost of the greenhouse gas during the year of
the change;
``(C) include commentary on the expected effects of
the greenhouse gas-related provisions on greenhouse gas
emissions after the end of the period described in
subparagraph (A); and
``(D) include commentary, to the extent
practicable, on the effects of the greenhouse gas-
related provisions on global greenhouse gas emissions.
``(3) Inclusion in report.--If the Director timely submits
to a committee of the Senate or the House of Representatives
estimates and commentary under this subsection with respect to
a bill or joint resolution containing 1 or more greenhouse gas-
related provisions, the committee shall include the estimates
and commentary in the report accompanying the bill or joint
resolution, if the committee submits such a report.
``(4) Estimates regarding other legislative provisions.--To
the extent practicable, upon a request by the Chairman of the
Committee on the Budget of the Senate or the Committee on the
Budget of the House of Representatives, the Director shall
publish a greenhouse gas emissions estimate in accordance with
this subsection with respect to any legislative provision.
``(5) Estimates while developing models.--If the Director
determines that a reported bill or joint resolution for which a
report is required under paragraph (1) contains 1 or more
greenhouse gas-related provisions that primarily affect the
greenhouse gas emissions of a sector for which the Director has
not yet developed an economic model under section 202(h)(2),
the Director shall--
``(A) omit those greenhouse gas-related provisions
from the greenhouse gas emissions estimate of the
Director;
``(B) indicate in the greenhouse gas emissions
estimate that the Director made that determination; and
``(C) include in the greenhouse gas emissions
estimate the reasons for that determination.
``(c) Mandatory Appropriation.--In addition to amounts otherwise
made available to the Director, there are appropriated for each of
fiscal years 2025 through 2034 to the Director, out of any money in the
Treasury not otherwise appropriated, $20,000,000 to carry out this
section and section 202(h). Amounts appropriated under this subsection
shall remain available until expended.''.
(2) Conforming amendment.--The table of contents in section
1(b) of the Congressional Budget and Impoundment Control Act of
1974 is amended by inserting after the item relating to section
402 the following:
``Sec. 402A. Emissions estimates by Congressional Budget Office.''.
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