[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 1325 Introduced in Senate (IS)] <DOC> 119th CONGRESS 1st Session S. 1325 To amend the Internal Revenue Code of 1986 to impose a fee on certain products imported into the United States based on the pollution intensity associated with the production of such products, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES April 8, 2025 Mr. Cassidy (for himself and Mr. Graham) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to impose a fee on certain products imported into the United States based on the pollution intensity associated with the production of such products, 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 ``Foreign Pollution Fee Act of 2025''. SEC. 2. SENSE OF CONGRESS; PURPOSE. (a) Sense of Congress.--It is the sense of Congress that-- (1) the United States has led the world in carbon emissions reductions over the past 15 years, cutting more emissions than any other nation; (2) the United States economy is 55 percent more carbon- efficient than the global average; (3) on average, goods produced in China generate more than 3 times the carbon emissions of equivalent American-made goods, while Russian-made goods produce 5 times the emissions, which gives foreign polluters an unfair cost advantage over American manufacturers; (4) Federal environmental regulations impose an estimated $400,000,000,000 in annual costs on the economy of the United States, placing a disproportionate burden on American businesses and workers; (5) manufacturers in the United States face staggering environmental regulatory compliance costs, averaging $17,200 per employee, which are costs that foreign competitors, particularly in China, do not bear; (6) American businesses spend a higher percentage of their revenue on environmental compliance than many of their global competitors, making it harder to compete internationally; (7) as a result of these costs, companies in the United States have lost market share to foreign producers operating under weak, underenforced, or nonexistent environmental standards; (8) China is by far the world's worst air and water polluter, responsible for 30 percent of global carbon emissions; (9) the Chinese Communist Party effectively subsidizes its exports by refusing to enforce basic environmental protections, undercutting responsible manufacturers in the United States; (10) China's state-controlled industries operate as an extension of the Communist Party, using predatory trade practices, including environmental exploitation, to eliminate American competition and expand Beijing's control over global markets; (11) United States trade policy has given foreign polluters a competitive edge at the expense of American workers for decades, rewarding bad actors while punishing responsible manufacturers in the United States; (12) China has been the primary beneficiary of these policies, with the United States losing approximately 5,000,000 jobs in the last 2 decades, with half of that loss directly attributable to the growing trade deficit with China; and (13) recognizing and rewarding manufacturers in the United States for their environmental leadership would strengthen domestic industry, create high-paying jobs, and reduce America's dependence on high-emitting producers like China and Russia. (b) Purpose.--The purpose of this Act is to level the playing field for American workers and manufacturers by ensuring that China and other foreign adversaries cannot exploit weak environmental standards, lack of enforcement, and noncompliance to gain an unfair advantage in global trade. SEC. 3. RULE OF CONSTRUCTION. Nothing in this Act, or any amendments made by this Act, shall be construed to authorize the creation of any carbon tax, fee, pricing, or other mechanism that imposes additional costs to any covered product (as defined in section 4695(a) of the Internal Revenue Code of 1986, as added by this Act) which is produced domestically and sold, used, further refined, or distributed within United States or exported to another country for sale or use. TITLE I--FOREIGN POLLUTION FEE SEC. 101. FOREIGN POLLUTION FEE. (a) In General.--Chapter 38 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter: ``Subchapter E--Foreign Pollution Fee ``Sec. 4691. Definitions. ``Sec. 4692. Imposition of foreign pollution fee. ``Sec. 4693. Determination of variable charge. ``Sec. 4694. Calculation of pollution intensity. ``Sec. 4695. Treatment of international partnerships. ``Sec. 4696. Covered products. ``Sec. 4697. Advisory Committee on Global Pollution Challenges. ``Sec. 4698. Establishment process and reassessments. ``SEC. 4691. DEFINITIONS. ``For purposes of this subchapter-- ``(1) Administrator.--The term `Administrator' means the Administrator of the Environmental Protection Agency. ``(2) Advisory committee.--The term `Advisory Committee' means the Advisory Committee on Global Pollution Challenges, as established under section 4697. ``(3) Appropriate congressional committees.--The term `appropriate congressional committees' means the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives. ``(4) Baseline pollution intensity.--The term `baseline pollution intensity' means the pollution intensity associated with production of a covered product in the United States. ``(5) Carbon dioxide equivalent.--The term `carbon dioxide equivalent' means, with respect to a greenhouse gas, the quantity of such gas that has a global warming potential equivalent, determined over a 100-year period, to 1 metric ton of carbon dioxide, as determined pursuant to table A-1 of subpart A of part 98 of title 40, Code of Federal Regulations, as in effect on January 1, 2025. ``(6) Carbon removal.--The term `carbon removal' means-- ``(A) the capture of carbon oxides directly from ambient air (or, in dissolved form, from seawater), and ``(B) the sequestration of such carbon oxides which results in the net removal of atmospheric carbon oxides on a lifecycle basis. ``(7) Country of origin.--The term `country of origin' means, with respect to a covered product-- ``(A)(i) in the case of steel, the country in which the steel was melted and poured, ``(ii) in the case of aluminum, the country in which the aluminum was smelted and cast, or ``(iii) in the case of any other covered product, the country in which a covered product was produced, or ``(B) the last country in which a covered product was substantially transformed, as determined in a manner consistent with U.S. Customs and Border Protection procedures, directly prior to importation into the United States. ``(8) Covered entity.--The term `covered entity' means the importer of record of a covered product at the time of the importation of such product. ``(9) Direct emissions.--The term `direct emissions' means pollution from the facility where a product is produced, including pollution from the combustion of fuels and process emissions from chemical or physical transformations resulting from the production process. ``(10) Foreign entity of concern.--The term `foreign entity of concern' has the same meaning given such term in section 40207(a)(5) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)(5)). ``(11) HTS.--The term `HTS' means the Harmonized Tariff Schedule of the United States. ``(12) Indirect emissions.--The term `indirect emissions' means pollution from the production of electricity, heating, and cooling which are-- ``(A) produced outside the facility where a product is produced, and ``(B) consumed during the production process. ``(13) Input material or precursor.--The term `input material or precursor' means any material or product (other than fuel) which is-- ``(A) incorporated into a covered product, or ``(B) consumed during the production process of a covered product. ``(14) International partnership agreement.--The term `international partnership agreement' means an international partnership agreement established pursuant to title II of the Foreign Pollution Fee Act of 2025. ``(15) Nonmarket economy country.--The term `nonmarket economy country' means any foreign country that the Secretary of Commerce determines, pursuant to section 771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18)), does not operate on market principles of cost or pricing structures, so that sales of merchandise in that country do not reflect the fair value of merchandise. ``(16) Pollution.--The term `pollution' refers to emissions of-- ``(A) carbon dioxide, ``(B) hydrofluorocarbons, ``(C) methane, ``(D) nitrous oxide, ``(E) perfluorocarbons, ``(F) sulfur hexafluoride, and ``(G) any other anthropogenically-emitted gas which has been identified by the Secretary (in accordance with the notice and comment procedures under section 553 of title 5, United States Code) for purposes of this subchapter. ``(17) Pollution intensity.--The term `pollution intensity' means the amount of pollution, expressed in metric tons of carbon dioxide equivalent, which is emitted into the atmosphere in the production of a metric ton of a covered product, as determined pursuant to the requirements described in section 4694(c)). ``(18) Pollution intensity difference.--The term `pollution intensity difference' means, with respect to any covered product, the difference (expressed as a percentage) between-- ``(A) the pollution intensity associated with production of such product in the country of origin, and ``(B) the baseline pollution intensity with respect to such product. ``(19) Precursor emissions.--The term `precursor emissions' means pollution (including any direct or indirect emissions) emitted into the atmosphere in the production of an input material or precursor. ``(20) Producer.--The term `producer' means the entity responsible for the manufacturing of a product. ``(21) Product.--The term `product' means any article, regardless of whether such article is-- ``(A) exported from the country of origin, or ``(B) produced and sold only within the country of origin. ``(22) Recycled material.--The term `recycled material' means a material that is used in place of, or to reduce the use of, a primary, raw, or virgin material in the manufacturing of a product. ``(23) Relevant federal agency.--The term `relevant Federal agency' means-- ``(A) the Department of Energy, ``(B) the Office of the United States Trade Representative, ``(C) the Department of Commerce, ``(D) the Department of State, ``(E) the Environmental Protection Agency, ``(F) the Council on Environmental Quality, ``(G) the Office of Science and Technology Policy, and ``(H) the Department of Homeland Security. ``(24) Transportation emissions.--The term `transportation emissions' means pollution from the transport of a covered product, or an input material or precursor, across international borders prior to entry into the United States. ``SEC. 4692. IMPOSITION OF FOREIGN POLLUTION FEE. ``(a) In General.-- ``(1) Imposition of fee.--In the case of any covered product which is imported by a covered entity into the United States after the applicable date, there is hereby imposed an ad valorem fee upon entry or importation of such covered product in an amount equal to the product of-- ``(A) the customs value of such covered product which is imported into the United States, and ``(B) the variable charge (as determined under section 4693). ``(2) Applicable date.--For purposes of paragraph (1), the applicable date shall be the date which is 6 weeks after the date of enactment of this subchapter. ``(b) Fee Due.-- ``(1) In general.--The fee imposed under this section with respect to any covered product shall be paid by the covered entity which imported such product at the same time, and through the same electronic portal, that any payment of custom duties are made. ``(2) Security for fees.--The Secretary may issue such regulations or other guidance to require, or may direct officers of U.S. Customs and Border Protection to require, a covered entity to file with the Secretary a bond or other security in such amount and with such conditions as the Secretary determines necessary to ensure payment of the fees imposed under this section. ``SEC. 4693. DETERMINATION OF VARIABLE CHARGE. ``(a) In General.-- ``(1) Initial application.--For purposes of the period beginning on the day after the applicable date under section 4692(a)(2) and ending on the date on which the final rules under section 4698(b) are issued, the variable charge with respect to any covered product shall be determined under the following table (as determined pursuant to the applicable country of origin and applicable category under section 4696 with respect to such covered product): ---------------------------------------------------------------------------------------------------------------- Paragraph Paragraph Paragraph (4) or Paragraph Paragraph (3), (6), (7) or Paragraph Paragraph ``Country of Origin (5) of (1) of (2) of or (8) of (9) of (10) of (11) of section section section section section section section 4696 4696 4696 4696 4696 4696 4696 ---------------------------------------------------------------------------------------------------------------- Canada............................. 26% 27% 17% 27% 33% 30% 31% China.............................. 200% 143% 200% 103% 121% 200% 200% Mexico............................. 38% 27% 45% 0% 0% 100% 39% South Korea........................ 47% 49% 44% 58% 0% 100% 35% Germany............................ 9% 30% 0% 0% 0% 35% 0% Taiwan............................. 100% 100% 100% 51% 53% 100% 69% India.............................. 100% 100% 100% 100% 38% 100% 46% Vietnam............................ 200% 200% 200% 200% 200% 200% 200% Brazil............................. 55% 56% 49% 57% 29% 57% 30% Japan.............................. 29% 29% 29% 34% 0% 37% 0% Italy.............................. 0% 0% 0% 0% 0% 77% 0% Thailand........................... 65% 38% 72% 26% 23% 100% 28% Turkey............................. 50% 45% 57% 100% 32% 100% 41% France............................. 0% 6% 0% 0% 0% 19% 0% Spain.............................. 0% 0% 22% 35% 0% 61% 9% United Kingdom..................... 0% 28% 0% 0% 0% 37% 0% Netherlands........................ 26% 27% 0% 0% 11% 34% 7% Russia............................. 200% 200% 200% 200% 200% 0% 0% Austria............................ 26% 29% 0% 0% 0% 39% 0% Colombia........................... 32% 32% 32% 0% 0% 100% 0% Israel............................. 0% 0% 0% 0% 0% 37% 0% Hungary............................ 33% 28% 33% 31% 0% 100% 39% Malaysia........................... 71% 40% 100% 33% 100% 100% 100% Poland............................. 39% 44% 39% 45% 51% 67% 52% Cambodia........................... 66% 0% 66% 68% 0% 0% 0% Any other country.................. 50% 40% 55% 48% 69% 100% 37% ---------------------------------------------------------------------------------------------------------------- ``(2) Subsequent application.-- ``(A) In general.--For purposes of the 36-month period subsequent to the date on which the final rules under section 4698(b) are issued, the variable charge with respect to any covered product shall be determined as follows: ``(i) With respect to any covered product which has been assigned to tier 1, the variable charge shall be an amount (expressed as a percentage) equal to or greater than 5 percent and not greater than 25 percent, as determined in such manner as to achieve a linear correlation between the variable charge and the pollution intensity difference of products assigned to such tier. ``(ii) With respect to any covered product which has been assigned to tier 2, the variable charge shall be an amount (expressed as a percentage) equal to or greater than 25 percent and not greater than 80 percent, as determined in such manner as to achieve a linear correlation between the variable charge and the pollution intensity difference of products assigned to such tier. ``(iii) With respect to any covered product which has been assigned to tier 3, the variable charge shall be an amount (expressed as a percentage not to exceed 100 percent) equal to the sum of-- ``(I) 80 percent, plus ``(II) 1 percentage point for every percentage point by which the pollution intensity difference of such product exceeds 200 percent. ``(B) Tiers.-- ``(i) Tier 1.--Any covered product for which the pollution intensity difference is greater than 10 percent and not greater than 20 percent shall be assigned to tier 1. ``(ii) Tier 2.--Any covered product for which the pollution intensity difference is greater than 20 percent and not greater than 200 percent shall be assigned to tier 2. ``(iii) Tier 3.--Any covered product for which the pollution intensity difference is greater than 200 percent shall be assigned to tier 3. ``(C) Enhancement of variable charge.-- ``(i) Nonmarket economy country.--In the case of any covered product for which the country of origin is a nonmarket economy country, the variable charge with respect to such product shall be an amount (expressed as a percentage) equal to the product of-- ``(I) the amount otherwise determined under subparagraph (A) with respect to such product, multiplied by ``(II) 2. ``(ii) Foreign entity of concern.--In the case of any covered product which is produced in a facility which is owned or controlled by a foreign entity of concern, the variable charge with respect to such product shall be an amount (expressed as a percentage) equal to the product of-- ``(I) the amount otherwise determined under subparagraph (A) with respect to such product, multiplied by ``(II) 2. ``(iii) Facility owned by foreign entity of concern in nonmarket economy country.--In the case of any covered product which is described in both clause (i) and clause (ii), the variable charge with respect to such product shall be an amount (expressed as a percentage) equal to the product of-- ``(I) the amount otherwise determined under subparagraph (A) with respect to such product, multiplied by ``(II) 4. ``(b) Exception for National Security.-- ``(1) In general.--The Secretary, in coordination with the Secretary of Defense and the Commissioner of U.S. Customs and Border Protection, may reduce the variable charge to zero for specific entries of a covered product if the Secretary determines that such specific entries are imported for purposes of fulfilling a Department of Defense contract. ``(2) Publication.--The Secretary shall make public any reduction under this subsection with respect to a covered product unless the publication of such information would negatively affect national security. ``(c) Evasion.-- ``(1) In general.--If the Secretary of Commerce (in consultation with the Secretary, the Secretary of Homeland Security, the United States Trade Representative, and the appropriate congressional committees) determines that any country, producer, or importer is evading or attempting to evade application of the fee imposed under section 4692, the Secretary shall adjust the variable charge in such manner as is deemed necessary to offset or deter such evasion. ``(2) Trade remedy law enforcement division.--The Trade Remedy Law Enforcement Division of the Office of Trade of the Department of Homeland Security shall assist the Secretary with enforcement and compliance activities concerning any evasion described in paragraph (1). ``(3) Definition.-- ``(A) In general.--The terms `evade' and `evasion' shall be deemed to refer to entering any covered product into the customs territory of the United States-- ``(i) by means of any document or electronically transmitted data or information, written or oral statement, or act that is material and false, or any omission that is material, and ``(ii) which results in any bond or other security or any amount of the fee imposed under section 4692 with respect to such product being reduced or not being applied. ``(B) Fraud relating to carbon removal activities.--The terms `evade' and `evasion' shall include any fraud relating carbon removal activities associated with the production of a covered product (as described in section 4694(d)(3)). ``(4) Rules.--Not later than 12 months after the date of enactment of this subchapter, the Secretary (in consultation with the Secretary of Homeland Security) shall issue a final rule with respect to the implementation of this subsection. ``SEC. 4694. CALCULATION OF POLLUTION INTENSITY. ``(a) In General.--For purposes of determining the variable charge for covered products under section 4693 after the period described in section 4693(a)(1), the Secretary (in consultation with the Advisory Committee) shall-- ``(1) develop consistent methods for calculating the pollution intensity of any covered product which are applied consistently across covered products and to the country of origin, and ``(2) make such methods publicly available. ``(b) Form.-- ``(1) In general.--With respect to any covered product, the pollution intensity of such product shall be expressed based on the production-weight averaged pollution intensity associated with the manufacturing of such product in the country of origin. ``(2) Relevant emissions.--The pollution intensity of a covered product shall account for-- ``(A) direct emissions, ``(B) indirect emissions, ``(C) precursor emissions, and ``(D) transportation emissions, associated with the manufacturing of such product. ``(3) Specificity.--To the maximum extent practicable, the pollution intensity of a covered product shall be specific to the applicable 6-digit HTS subheading number. ``(4) Exceptions.-- ``(A) 4-digit.--In the case of a covered product for which data is not available to determine pollution intensity in a manner specific to the 6-digit HTS subheading number, the Secretary may determine the pollution intensity based on the applicable 4-digit HTS heading. ``(B) 10-digit.--In the case of a covered product for which data demonstrates significant differences in pollution intensity between 10-digit HTS statistical reporting numbers, the Secretary may determine pollution intensity based on the applicable 10-digit statistical reporting number. ``(c) Data.-- ``(1) In general.--To the extent necessary for any determination with respect to any covered product, the Secretary (in consultation with the Advisory Committee) may use-- ``(A) economic, statistical, and engineering models and analysis, ``(B) pollution monitoring data from facilities, satellites, and other pollution monitoring tools, provided that such data-- ``(i) is publicly available, or ``(ii) is not publicly available but is able to be accessed and verified on a consistent basis by the Secretary or the head of any relevant Federal agency, ``(C) voluntarily reported data, provided that such data is-- ``(i) a product of monitored emissions, and ``(ii) able to be verified by the Secretary, ``(D) the best available information on technology performance levels for the industrial sector that produces such product, and ``(E) manufacturing and pollution data which is specific to a covered product, including relevant data regarding-- ``(i) the industrial sector which is associated with such product, and ``(ii) the country of origin. ``(2) Access to information.-- ``(A) In general.--The head of every relevant Federal agency shall provide the Secretary with any information held by or otherwise available to the head of such Federal agency which is relevant to the calculation of pollution intensity. ``(B) Confidentiality.--With respect to any information or data relating to operational practices or manufacturing processes of any producer of a covered product which is provided to the Secretary pursuant to subparagraph (A), unless such information or data is otherwise publicly available, the head of any relevant Federal agency shall take such measures as are necessary to ensure that such information and data is aggregated and anonymized. ``(d) Methodology.-- ``(1) In general.--For purposes of creating a process for calculating the pollution intensity of any covered product under subsection (a), the Secretary (in consultation with the Advisory Committee) shall-- ``(A) use the best, and most internationally comparable, data available to establish the baseline pollution intensity with respect to such product, and ``(B) in the case of a covered product produced outside of the United States, base the calculation of the pollution intensity of such product on the process used to establish the baseline pollution intensity for such product. ``(2) Treatment of recycled materials.--In the case of any recycled material which is recycled (as defined in section 246.101(x) of title 40, Code of Federal Regulations) into-- ``(A) an input material or precursor, or ``(B) a covered product, the Secretary shall deem such recycled material to have a pollution intensity as low as zero, as determined pursuant to such methods as are determined appropriate by the Secretary. ``(3) Treatment of carbon oxides.-- ``(A) In general.--Any carbon oxide captured from manufacturing processes by the producer of a covered product, or verifiably purchased by the producer of a covered product as an offset from a verified entity operating carbon removal infrastructure or projects, shall have the effect of reducing the pollution associated with the production of a covered product if-- ``(i) in the case of any carbon oxide captured by the producer of the covered product, such carbon oxide is captured in the country of origin of such product and either-- ``(I) utilized in the creation of a product in a manner which ensures that such carbon oxide does not escape into the atmosphere, or ``(II) verifiably sequestered in a manner which provides an accurate accounting of the storage of such carbon oxide, or ``(ii) in the case of an offset purchased by the producer of the covered product, such offset is a durable carbon removal credit representing carbon oxides removed from the atmosphere in the United States or in any country by an entity which is not designated as a foreign entity of concern, as verified in a manner which provides an accurate accounting of the utilization or sequestration of such carbon oxide, including the permanence of its storage. ``(B) Accounting.--Subject to subparagraph (C), any carbon oxide utilized or sequestered as described in subparagraph (A) shall be-- ``(i) treated as a reduction in pollution associated with the production of a covered product based on the total tons of carbon oxide utilized or sequestered, ``(ii) eligible to offset relevant emissions based on the relevant carbon dioxide equivalent value, and ``(iii) verified pursuant to such process as is established by the Secretary (in consultation with the Administrator and the Secretary of Energy). ``(C) Weighting.--For purposes of subparagraph (B), with respect to determining the amount of carbon oxide utilized or sequestered (as described in subparagraph (A)), such determination shall be conducted in such a manner as is determined appropriate by the Secretary (in consultation with the Administrator and the Secretary of Energy) so as to ensure that any reduction in the amount of pollution associated with the production of a covered product is commensurate with the level of durability and permanency of the captured carbon oxide which is utilized or sequestered, such that measures that provide for permanent carbon removal (such as sequestration of carbon oxides in geologic storage or other equivalent measures that have been scientifically determined to provide permanent storage) will be determined to result in a proportionally higher reduction in pollution than measures that provide for non-permanent carbon removal (such as measures that have been scientifically determined to have a lower period of storage or higher risks of reversal compared to geologic storage). ``(4) Treatment of facility-specific agreements.--For the purpose of determining the pollution intensity of any covered product which is produced in a foreign country, if-- ``(A) such product is produced in a facility which is-- ``(i) located in such country, and ``(ii) covered by an agreement established under section 204 of the Foreign Pollution Fee Act of 2025, and ``(B) the pollution intensity of the product produced in such facility would otherwise lower the average pollution intensity associated with the production of such product in such country, the pollution intensity of the product produced in such facility shall not be included for purposes of calculating the pollution intensity associated with production of such product in the country of origin. ``(e) Alterations for Foreign Data.--For purposes of determining the pollution intensity values with respect to any country of origin for a covered product, if-- ``(1) the baseline pollution intensity for such covered product was determined utilizing a methodology based on data described in subsection (c) which was provided at a more localized level, or in more granular detail, than the data available with respect to the country of origin, the pollution intensity otherwise determined under this section with respect to production of such covered product in such country of origin shall be increased by 20 percent, and ``(2) data with respect to the country of origin is unavailable or unverifiable, the Secretary may determine the baseline pollution intensity for the country using an inference that is adverse to the interests of the country in selecting from among the facts otherwise available to make the determination. ``(f) Foreign Illustration of Pollution Intensity.-- ``(1) In general.--Any country may provide the Secretary with access to any verifiable data necessary to establish an alternative pollution intensity with respect to any covered product. ``(2) Alternative pollution intensity.-- ``(A) In general.--In the case of a country which provides data described in paragraph (1), the Secretary may adjust the pollution intensity with respect to any covered product, provided that the country providing such data-- ``(i) ensures the accuracy of all relevant data for all covered products, ``(ii) provides data at a level of granularity which satisfies the methods established by the Secretary, and ``(iii) provides the data consistently and in a manner that is verifiable by the Secretary. ``(B) Role of the advisory committee.--For purposes of this paragraph, the Advisory Committee shall assist the Secretary by verifying relevant data and calculating adjustments to pollution intensities. ``(3) Publication of alternative pollution intensity values.--In the case of any pollution intensity with respect to any covered product which is adjusted pursuant to paragraph (2)-- ``(A) the Secretary shall publish such adjustment in the Federal Register, and ``(B) such adjustment shall take effect in the following calendar year. ``(g) Treatment of Potential Evasion and Outliers.--If the Secretary of Commerce (in consultation with the Secretary, the United States Trade Representative, the appropriate congressional committees, and any relevant Federal agency) determines that any country or any producer is evading or attempting to evade application of the fee imposed under section 4692, the Secretary may prohibit the importation of covered goods from that country or produced by that producer. ``SEC. 4695. TREATMENT OF INTERNATIONAL PARTNERSHIPS. ``(a) Adjustment of Fee for Partner Countries.--In the case of a covered product which is produced in a country which is a party to an international partnership agreement which satisfies the conditions under sections 201 and 202 of the Foreign Pollution Fee Act of 2025 (referred to in this section as a `partner country'), the fee under section 4692 shall be reduced in accordance with the terms of such agreement. ``(b) Elimination of Treatment of Foreign Data.--Section 4694(e) shall not apply to any partner country. ``SEC. 4696. COVERED PRODUCTS. ``The term `covered product' means articles classifiable under the same 6-digit subheading number of the HTS within one of the following categories: ``(1) Aluminum classifiable under heading 7601 or any of headings 7603 through 7608 of the HTS, aluminum hydroxide classifiable under subheading 2818.30.00 of the HTS, and aluminum oxide classifiable under subheading 2818.20.00 of the HTS. ``(2) Articles of aluminum classifiable under any of headings 7609 through 7616 of the HTS, and any other articles of aluminum that are classified under any other heading or subheading of the HTS (as identified by the Secretary). ``(3) Articles of cement classifiable under headings 6810 or 6811 of the HTS. ``(4) Iron and steel classifiable under any of headings 7206 through 7306 of the HTS. ``(5) Articles of iron and steel classifiable under any of headings 7307 through 7326 of the HTS. ``(6) Cement classifiable under heading 2523 or subheading 3824.50 of the HTS. ``(7) Fertilizer and related products classifiable under any of the following headings or subheading of the HTS: ``(A) Heading 2808. ``(B) Heading 2814. ``(C) Subheading 2834.21. ``(D) Heading 3102 (other than subheading 3102.10.30). ``(E) Any of subheadings 3105.20 through 3105.59. ``(F) Subheading 3105.90.10. ``(8) Glass classifiable under any of headings 7001 through 7020 of the HTS. ``(9) Hydrogen classifiable under subheading 2804.10 of the HTS. ``(10) Solar products classifiable under any of subheadings 2804.61, 3818.00, 8541.42, 8541.43, 8541.49, and 8541.59 of the HTS. ``(11) Battery inputs classifiable under statistical reporting number 2826.90.9010 or subheading 8507.60.00 or 8507.90 of the HTS. ``SEC. 4697. ADVISORY COMMITTEE ON GLOBAL POLLUTION CHALLENGES. ``(a) In General.--The Secretary shall establish an advisory committee, to be known as the `Advisory Committee on Global Pollution Challenges', in accordance with chapter 10 of title 5, United States Code (commonly referred to as the `Federal Advisory Committee Act') . ``(b) Composition.-- ``(1) In general.--The Advisory Committee shall be composed of-- ``(A) 2 representatives of each of the industrial sectors described in paragraphs (1) through (9) of section 4696, ``(B) 2 representatives from the National Laboratories (as defined in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)), and ``(C) 2 representatives from the scientific research community with expertise in greenhouse gas accounting and the monitoring, reporting, and verification of carbon reduction and carbon removal processes, as appointed by the Secretary. ``(2) Period of appointment.--Each representative appointed pursuant to paragraph (1) shall serve for a term of 2 calendar years, and may be reappointed by the Secretary for any additional term. ``(c) Chair.--The chair of the Advisory Committee shall be selected by the Secretary from the representatives described in subsection (b). ``(d) Duties.--The Advisory Committee shall-- ``(1) in accordance with section 4694, consult with the Secretary on methods of calculating-- ``(A) the baseline pollution intensity, as determined based on production of the covered product in the United States, and ``(B) the respective pollution intensity for production of such covered product in any foreign country, ``(2) provide assistance with regard to section 4694(f), as well as any other requests from the Secretary, and ``(3) provide recommendations to the Secretary regarding any rules or reassessments under section 4698. ``SEC. 4698. ESTABLISHMENT PROCESS AND REASSESSMENTS. ``(a) In General.--The processes established under this section shall be utilized to-- ``(1) provide rules for application of the fee imposed under section 4692 after the period described in section 4693(a)(1), and ``(2) perform any required reassessment. ``(b) Rulemaking.-- ``(1) Classification of covered products.--Not later than 12 months after the date of enactment of this subchapter, the Secretary shall issue a final rule for purposes of determining the appropriate heading or subheading number of the HTS for each covered product. ``(2) Pollution intensity methodology calculations.-- ``(A) In general.--Not later than 12 months after the date of enactment of this subchapter, the Secretary shall publish a final rule establishing-- ``(i) in a manner consistent with section 4694, the methods for calculating the pollution intensity with respect to each covered product and country of origin, and ``(ii) methods for any foreign country to establish an alternative pollution intensity with respect to any covered product pursuant to subsection (f) of such section. ``(B) Evasion.--Not later than 18 months after the date of enactment of this subchapter, the Secretary shall publish a final rule to address producers described in section 4694(g). ``(3) Establishment of variable charges.--Not later than 12 months after the date of enactment of this subchapter, the Secretary (in consultation with the United States Trade Representative) shall issue a final rule establishing the variable charge for covered products for purposes of section 4693. ``(4) Traceability.-- ``(A) In general.--Not later than 12 months after the date of enactment of this subchapter, the Secretary (in consultation with the Secretary of Homeland Security) shall issue a final rule with respect to establishing traceability requirements applicable to any covered entity for purposes of demonstrating the accuracy of data provided with respect to each entry or importation of a covered product which is relevant to determining the variable charge imposed on such product. ``(B) Requirements.-- ``(i) In general.--For purposes of subparagraph (A), the traceability requirements shall include-- ``(I) entry-, importation- and supply chain-specific traceability and document authentication with respect to all entities involved in production of the covered product at every step of the supply chain, and ``(II) successful verifications (for entries or importations) and validations (for supply chains). ``(ii) Frequency.--For purposes of clause (i), such verifications, validations, and audits shall be conducted at a frequency (as determined by the Secretary in the final rule described in subparagraph (A)) that is tailored to jurisdiction-, producer-, industry-, and product-specific risk factors in order to provide a high level of confidence to the Secretary that covered entities are satisfying the requirements established under the final rule. ``(C) Demonstration.--At the time of each entry or importation of a covered product, the covered entity shall affirmatively demonstrate to the Secretary that the requirements established under subparagraph (A) have been satisfied with respect to such product. ``(D) Data.--The Secretary shall use the data provided by covered entities to U.S. Customs and Border Protection pursuant to the requirements established under subparagraph (A) for purposes making determinations under section 4694(g) with respect to whether any country or any producer is evading or attempting to evade application of the fee imposed under section 4692. ``(5) Additional rulemaking.--In addition to the rules described in paragraphs (1) through (4), any rules which are necessary in order to properly apply the fee under section 4692 shall be issued not later than the date which is 12 months after the date of enactment of this subchapter. ``(c) Reassessment.-- ``(1) In general.--Not later than 3 years after the date of the issuance of any final rule described in subsection (b), and every 3 years thereafter, the Secretary shall reassess and, as necessary, issue a final rule to adjust, the existing final rule. ``(2) Revision.--The United States International Trade Commission, in consultation with the Secretary, shall annually publish a notice reflecting headings, subheadings, and statistical reporting numbers of the HTS contained in any rule issued under this section which need to be amended due to revisions to the HTS. ``(3) Newly available data.--With respect to any reassessment described in paragraph (1), the Secretary may utilize any data which is available as a result of enhancements in the ability to assess domestic or foreign pollution pursuant to legislation enacted or developments in technology subsequent to the issuance of the most recent final rule. ``(4) International partnerships.--In the case of an international partnership agreement, the Secretary may, at the time of the establishment of such agreement and in a manner consistent with such agreement, issue a final rule to adjust the pollution intensity for any covered product (as determined pursuant to subsection (d)) produced in a country which is a party to such agreement. ``(5) Timing.--In the case of any final rule issued with respect to any reassessment under paragraph (1), the application of such rule shall take effect on January 1 of the first calendar year beginning subsequent to the issuance of such final rule. ``(d) Process.-- ``(1) Notice and consultation.--Not later than 6 months prior to-- ``(A) the date on which any final rule is required to be issued under paragraphs (1) through (5) of subsection (b), and ``(B) the date on which any reassessment is required to be made under subsection (c)(1), the Secretary shall publish a notice of proposed rulemaking with respect to such final rule or reassessment and brief the appropriate congressional committees and consult with such committees regarding such final rule or reassessment. ``(2) Comment.--Following the notice under paragraph (1), the Secretary shall provide a public comment period of not less than 60 days. ``(3) Consultation.--Prior to the issuance of any final rule or reassessment under this section regarding the appropriate classification of covered products, the Secretary may consult with-- ``(A) the United States Trade Representative, ``(B) the United States International Trade Commission, ``(C) the Commissioner of U.S. Customs and Border Protection, and ``(D) all other relevant Federal agencies. ``(e) Publication of Foreign Pollution Fee Table.-- ``(1) In general.--The Secretary shall publish, in a comprehensive format that is made publicly available, all final rules issued under this section with respect to the application of the fee imposed under section 4692 (referred to in this subsection as the `Foreign Pollution Fee Table'). ``(2) Included information.--The Foreign Pollution Fee Table shall include information related to-- ``(A) any products covered by the fee imposed under section 4692, as identified by the applicable 6-digit HTS subheading number, ``(B) the variable charge with respect to any covered product by country of origin, and ``(C) the baseline pollution intensity and pollution intensity with respect to each covered product and country of origin. ``(3) Updates.--The Foreign Pollution Fee Table shall be updated every 12 months. ``(4) Exception.--The Secretary shall redact any information which may have a negative effect on national security.''. TITLE II--INTERNATIONAL PARTNERSHIP AGREEMENTS RELATING TO POLLUTION FEES SEC. 201. INTERNATIONAL PARTNERSHIP AGREEMENTS. (a) In General.--The United States Trade Representative, at the direction of the President, may-- (1) engage in negotiations with countries to encourage the establishment and expansion of international partnership agreements, as provided in this title; (2) establish agreements with foreign countries with respect to proposals to enter into international partnership agreements; (3) implement such an agreement; and (4) perform the oversight and enforcement role necessary to uphold any such agreement. (b) Requirements for International Partnership Agreements.-- (1) Products.--An international partnership agreement may be entered into under this title on the basis of one or more covered products. (2) Parties.-- (A) In general.--Subject to the requirements under subparagraph (B) and paragraph (3), the United States may enter into an international partnership agreement under this title with-- (i) one country; or (ii) multiple countries. (B) Exclusion of nonmarket economy countries.--The United States may not enter into an international partnership agreement under this title with a nonmarket economy country. (3) Requirements.--An international partnership agreement entered into under this title is required to provide for-- (A) creation of interoperable methods to promote pollution reduction through trade mechanisms by assessing pollution intensity differences between countries; (B) maintenance of the ability of a country that is a party to the agreement to determine methods of pollution reduction within that country; (C) reduction of any fee or charge between countries that are parties to the agreement in a manner compatible with the process described in section 202; (D) compatible pollution monitoring, reporting, and verification methods that-- (i) allow for interoperable methods to be used to calculate the pollution intensity of covered products and countries that are parties to the agreement, on the basis of the available information within each such country; (ii) allow for similar methods to be used to calculate the pollution intensity of covered products imported from countries that are not parties to the agreement; and (iii) allow for each country that is a party to the agreement to consistently validate the monitoring and reporting information of the other countries that are parties to the agreement with respect to products covered by the agreement; and (E) collaboration between the parties to the agreement on developing and implementing policies-- (i) to address market distortions, including excess capacity, caused by the policies or practices of nonmarket economy countries; and (ii) to determine whether covered products are produced in facilities owned or controlled by a foreign entity of concern. (c) Timeline.-- (1) In general.--The requirements described in subsection (b) with respect to an international partnership agreement are required to be achieved-- (A) for high-income countries and upper-middle income countries, not later than 3 years after entering into the agreement; and (B) for low-income countries and lower-middle- income countries, not later than 5 years after entering into the agreement. (2) Applicability of benefits.-- (A) In general.--Except as provided by subsection (f), countries described in paragraph (1)(A) shall not receive the treatment described in section 4695 of the Internal Revenue Code of 1986, as added by title I, until the requirements under subsection (b) are met. (B) Termination.--The United States shall maintain the right to terminate an international partnership agreement at any time pursuant to the terms of the agreement. (d) Publication; Congressional Review.--An international partnership agreement entered into under this section shall be-- (1) published in the Federal Register; and (2) treated as a final rule prepared by an agency, including with respect to review by Congress under chapter 8 of title 5, United States Code (commonly referred to as the ``Congressional Review Act''). (e) Restrictions on Negotiations Relating to Domestic Policy.--The authority provided by this section does not include the authority to negotiate or enter into an agreement that would establish carbon taxes, fees, pricing, or other mechanisms that impose additional costs on products produced by a United States entity. (f) Delay in Application of Foreign Pollution Fee To Negotiate With Free Trade Agreement Countries.--In the case of a country with which the United States has a free trade agreement in effect that is negotiating for a partnership agreement under this title, the application of the fee under section 4696 of the Internal Revenue Code of 1986, as added by title I, may be delayed for not more than 12 months to provide time to complete the negotiations. SEC. 202. APPLICATION OF FOREIGN POLLUTION FEE IN PARTNERSHIPS. (a) In General.--In accordance with section 4695 of the Internal Revenue Code of 1986, as added by title I, a reduced fee shall be applied under section 4692 of such Code with respect to a covered product imported from a country that is a party to an international partnership agreement entered into under this title. (b) Failure To Meet Requirements.--If a covered product is produced in a country that is a party to an international partnership agreement entered into under this title but does not meet the requirement described in subsection (a), the fee applied under section 4692 of the Internal Revenue Code of 1986, as added by title I, with respect to the covered product shall be calculated based on the variable charge determined under section 4693(a) of the Internal Revenue Code of 1986, as added by title I. (c) Treatment of Low-Income and Lower-Middle Income Countries.-- (1) In general.--During the 5-year period following the entry into force of an international partnership agreement under this title between the United States and a low-income country or lower-middle-income country-- (A) the pollution intensity requirement described in subsection (a) shall be considered to be met with respect to covered products produced in the country; and (B) no fee shall be applied to covered products imported from that country. (2) Modifications to requirements.-- (A) In general.--During the 10-year period beginning after the completion of the 5-year period described in paragraph (1), the pollution intensity requirement described in subsection (a) shall be considered to be met with respect to a covered product produced in a country described in paragraph (1) if new capacity in that country for the production of the covered product developed during the 10-year period described in paragraph (1) is not more than 50 percent more pollution intense than the baseline pollution intensity at the time of the entry into force of the international partnership agreement. (B) Future development.--For the 10-year period beginning after the completion of the 10-year period described in subparagraph (A), and each 10-year period thereafter, the pollution intensity requirement described in subsection (a) shall be considered to be met with respect to a covered product produced in a country described in paragraph (1) if new capacity in that country for the production of the covered product developed during the preceding 10-year period is not more than 25 percent more pollution intense than the baseline pollution intensity at the beginning of such preceding 10-year period. (3) Application of fee.--If the requirements described in paragraph (1) or (2), as applicable, are not met with respect to a covered product, the fee specified in subsection (b) shall apply. (d) Treatment of Evasion of Fee.--Nothing in this section shall supersede section 4694(g) of the Internal Revenue Code of 1986, as added by title I, with respect to potential evasion of the fee assessed under section 4692 of such Code if-- (1) a determination is made under such section 4694(g) with respect to a producer; and (2) the producer is owned, operated, or financed in or by a country that is not a party to an international partnership agreement entered into under this title. SEC. 203. SUPPORT FOR PARTICIPATION OF LOW-INCOME AND LOWER-MIDDLE- INCOME COUNTRIES IN INTERNATIONAL PARTNERSHIP AGREEMENTS. (a) In General.--The United States Trade Representative, at the direction of the President and in consultation with the heads of the relevant Federal agencies, may include, in an international partnership agreement entered into under this title with a country described in subsection (b), provisions providing for-- (1) the provision of treatment described in section 202(c) to that country; (2) the extension of untied or tied aid through a United States export, development, or trade agency to support energy technology deployment and manufacturing and secure supply chain development, including financing and technical assistance provided by the United States Agency for International Development, the Department of State, the Millennium Challenge Corporation, and the United States International Development Finance Corporation; (3) lower initial requirements relating to pollution data monitoring and alternative methods to more accurately project and model pollution under the agreement; (4) support for expansion of monitoring and reporting of pollution using best practices; and (5) technical assistance to ensure full compliance with the terms of the agreement. (b) Countries Described.--A country described in this subsection is-- (1) a low-income country or a lower-middle-income country; and (2) a country that the United States Trade Representative determines-- (A) meets investment thresholds in environmental infrastructure commensurate with the revenue foregone as a result of not charging the fee under section 4692 of the Internal Revenue Code of 1986, as added by title I, with respect to covered products imported from the country; (B) meets procurement thresholds of covered products and related goods and services produced in the United States and other countries that are parties to international partnership agreements under this title; (C) provides preferential market access for energy and environmental, security, and healthcare goods and services produced in the United States; and (D) adopts certain labor and environmental standards. (c) Benchmarks and Requirements.-- (1) In general.--The United States Trade Representative shall establish benchmarks or requirements to assess the progress of a country described in subsection (b) in fully implementing the terms of an international partnership agreement entered into under this title. (2) Benchmarks.--The benchmarks and requirements established under paragraph (1) with respect to a country shall include-- (A) improving methods of monitoring, reporting, and verifying pollution levels; (B) if, after the entry into force of the international partnership agreement, new manufacturing or production capacity for a covered product is built in the country but that capacity is owned or operated, or the majority of the financing for that capacity is provided, by an entity associated with a country that is not a party to an international partnership agreement, treating the new capacity-- (i) at the pollution intensity of the country that is not a party to an international partnership agreement if the pollution intensity for the covered product produced in that country is greater than the pollution intensity of the covered product produced in the country that is a party to the international partnership agreement; (ii) as not eligible for the treatment of a country that is a party to an international partnership agreement described in section 202; and (iii) in accordance to the requirements of section 4695 of the Internal Revenue Code of 1986, as added by title I; and (C) if, after the entry into force of the international partnership agreement, the ownership, a stake of ownership, or operation of manufacturing or production capacity for a covered product that is in operation on the date of entry into force is transferred to an entity in a country that is not a party to an international partnership agreement, treating such capacity-- (i) at the pollution intensity of the country that is not a party to an international partnership agreement if the pollution intensity for the covered product produced in that country is greater than the pollution intensity of the covered product produced in the country that is a party to the international partnership agreement; (ii) as not eligible for the treatment of a country that is a party to an international partnership agreement described in section 202; and (iii) in accordance to the requirements of section 4695 of the Internal Revenue Code of 1986, as added by title I. (d) Termination.--The United States shall maintain the authority to terminate the application to a country with which the United States enters into an international partnership agreement under this title of the provisions described in subsection (a)-- (1) if the country does not meet the benchmarks and requirements under subsection (c); and (2) pursuant to the terms of the international partnership agreement. (e) Inclusion of Other International Partners.--To the maximum extent practicable, the United States shall seek to include additional high-income countries and upper-middle-income countries in international partnership agreements entered into under this title with low-income countries or lower-middle-income countries. SEC. 204. TREATMENT OF CERTAIN FACILITIES RELATING TO POLLUTION FEES. (a) In General.--The Commissioner of U.S. Customs and Border Protection and the Administrator of the Environmental Protection Agency shall jointly develop a process under a facility located in a foreign country may apply to have products produced at the facility be treated at a pollution intensity specific to the facility (in this section referred to as ``facility-specific treatment'') instead of the pollution intensity for the country. (b) Eligibility Requirements.--To be eligible for facility-specific treatment under subsection (a), a facility is required to-- (1) be placed in service after the date of the enactment of this Act; (2) be-- (A) owned or operated by a United States entity; or (B) located in a country-- (i) with which the United States has entered into an international partnership agreement under this title; or (ii) with which the United States has a free trade agreement in effect; (3) comply with procedures to allow for ongoing verification of direct emissions by United States officials or their designees, including requirements that the facility-- (A) deploy pollution monitoring equipment able to report in real time the levels of pollution emitted by the facility; (B) provide access to real-time pollution monitoring data; (C) in the absence of pollution monitoring equipment, disclose-- (i) the volume and type of fuels consumed within the facility for the production of each covered product; (ii) emissions associated with any fuel combustion within the facility for the production of each covered product, including for industrial processes and any electricity, heat, or steam production; and (iii) all emissions associated with the chemical and physical transformation of raw materials within the facility for the production of each covered product; and (D) allow for spot inspections to ensure compliance with the requirements of this subsection; (4) account for the indirect emissions from the production of electricity, heating, and cooling that is produced outside the facility and consumed in the production of a covered product; (5) account for the emissions associated with the manufacture of input materials or precursors that are consumed in the production of a covered product; (6) disclose the volume and value of all covered products produced in the facility; (7) for facilities that manufacture a mix of covered products and products that are not covered products, disclose the fraction of production of covered products as a share of total output volume and value; and (8) identify the covered entity with respect to covered products produced at the facility for which the covered entity is not the owner of the facility. (c) Reconsideration of Determinations of Pollution Intensity.--The Commissioner of U.S. Customs and Border Protection and the Administrator of the Environmental Protection Agency may establish a process under which a United States entity a subsidiary of which owns or operates a facility granted facility-specific treatment under subsection (a) may petition for reconsideration of the determination of the pollution intensity specific to the facility. (d) Application of Variable Charge.--A product produced by a facility granted facility-specific treatment under subsection (a) and imported into the United States shall be subject to the variable charge determined under section 4693(a) of the Internal Revenue Code of 1986, as added by title I, aligned with the pollution intensity difference of a product produced by the facility and the baseline pollution intensity. (e) Ineligibility of Facilities in or Owned by Nonmarket Economy Countries.--A facility is not eligible for facility-specific treatment under subsection (a) if-- (1) the facility-- (A) is located in a nonmarket economy country; and (B)(i) is owned, partially owned, or operated by the government of the country or an entity owned or controlled by that government; or (ii) has received financing, including in the form of a tax credit or a limit on tax liability, to operate the facility by the government of the country or an entity owned or controlled by that government; or (2) the facility is owned, partially owned, or operated by-- (A) an entity owned or controlled by the government of a nonmarket economy country, without regard to whether the facilitated is located in such a country; or (B) a foreign entity of concern. (f) Termination of Facility-Specific Treatment.--The eligibility of a facility for facility-specific treatment under subsection (a) may be terminated at the sole discretion of the United States if the facility fails to satisfy any of the requirements under subsection (b) or becomes ineligible under subsection (e). (g) Confidentiality of Information.--Any information or data provided to the Commissioner of U.S. Customs and Border Protection or the Administrator of the Environmental Protection Agency pursuant to subsection (b) relating to operational practices or manufacturing processes of a facility seeking facility-specific treatment under subsection (a), may not be publicly disclosed, unless such information or data is otherwise publicly available. SEC. 205. DEFINITIONS. (a) In General.--In this title: (1) Free trade agreement.--The term ``free trade agreement'' means an agreement with 1 or more countries that-- (A) reduces or eliminates tariffs and non-tariff barriers between the countries that are parties to the agreement; and (B) is approved by Congress. (2) Nonmarket economy country.--The term ``nonmarket economy country'' means any foreign country that the Secretary of Commerce determines, pursuant to section 771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18)), does not operate on market principles of cost or pricing structures, so that sales of merchandise in that country do not reflect the fair value of merchandise. (3) United states entity.--The term ``United States entity'' means an entity organized under the laws of the United States or any jurisdiction within the United States. (b) Other Terms.--In this title, the definitions set forth in section 4691 of the Internal Revenue Code of 1986, as added by title I, apply. (c) World Bank Classifications.--In this title: (1) In general.--Subject to paragraph (2), the terms ``high-income country'', ``upper-middle-income country'', ``lower-middle-income country'', and ``low-income country'' shall be defined based on the classification of the economy of a country by the World Bank. (2) High-income and upper-middle-income countries.--In the case of any country which, as of January 1, 2025, is classified by the World Bank as a high-income country or an upper-middle- income country, such country shall not be eligible to be reclassified as a lower-middle-income country or a low-income country. TITLE III--OTHER MATTERS SEC. 301. ANNUAL REPORT. (a) In General.--Not later than one year after the date of the enactment of this Act, and annually thereafter, the Secretary of the Treasury shall submit to Congress a report-- (1) describing the efforts of the Department of the Treasury-- (A) to help United States entities that manufacture covered products counter unfair competition from nonmarket economy countries; and (B) to increase jobs in the United States; (2) assessing the competitive advantage of the United States with respect to greenhouse gas intensity; and (3) assessing the impact of this Act and the amendments made by this Act on the United States trade deficit and economic activity. (b) Biennial Reviews.--In each report required by subsection (a) submitted during an odd-numbered year, the Secretary shall include an assessment of whether this Act and the amendments made by this Act are achieving their intended policy goals. (c) Covered Product Defined.--In this section, the term ``covered product'' has the meaning given that term in section 4696 of the Internal Revenue Code of 1986, as added by title I. <all>