[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 25 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 25
To impose an assessment related to fossil fuel emissions, to establish
the Polluters Pay Climate Fund, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 7, 2025
Mr. Van Hollen (for himself, Mr. Sanders, Mr. Merkley, Mr. Markey, and
Ms. Warren) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To impose an assessment related to fossil fuel emissions, to establish
the Polluters Pay Climate Fund, 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 ``Polluters Pay Climate Fund Act of
2025''.
SEC. 2. FINDINGS.
Congress finds that--
(1) climate change, resulting primarily from the combustion
of fossil fuels, is an immediate, grave threat to the
communities, environment, and economy of the United States;
(2) severe consequences of climate change have already
materialized in the United States, including rising sea levels,
increasing temperatures, extreme weather events, flooding, heat
waves, loss of biodiversity, and other climate change-driven
ecosystem threats;
(3) the Federal government jointly with States and
localities must develop and implement protective measures to
counteract the adverse effects of climate change, protect
communities, and build resilience to extreme weather;
(4) the government response must include protections for
communities that are most vulnerable to climate change impacts,
especially communities of color, low-income communities, and
Tribal and Indigenous communities that are also more likely to
have experienced systemic disinvestment and be overburdened by
fossil fuel pollution;
(5) the protective measures necessary to respond to the
adverse effects of climate change in the United States will
require trillions of dollars of new investment during the
decade after the date of enactment of this Act;
(6) climate change related extreme weather events, such as
those described in paragraph (2), cost the United States at
least $150,000,000,000 each year and disproportionately affect
underserved and overburdened communities, according to the
Fifth National Climate Assessment;
(7) the $100,000,000,000 each year that fossil fuel
companies are collectively assessed for the Polluters Pay
Climate Fund established in this Act represents only a small
portion of the total cost to the Federal government to respond
to climate change related extreme weather events and make
needed climate change adaptation and resilience investments;
(8) peer-reviewed research can now determine with great
accuracy the share of carbon dioxide released into the
atmosphere by the operations and products of specific fossil
fuel companies, which is what informs the formulas to determine
carbon dioxide emissions that are used in the amendments made
by this Act;
(9) the fossil fuel industry has been aware of the central
role that their product plays in causing climate change since
before the year 2000;
(10) the fossil fuel industry must now increase their
contribution to government expenditures to protect the Nation
from climate disaster; and
(11) this Act and assessments under the amendments made by
this Act are not intended--
(A) to be a determination of fault; or
(B) to have any impact on the ability of any person
or other government to hold polluters accountable for
harms caused.
SEC. 3. TAX RELATING TO CURRENT STOCK OF GREENHOUSE GAS EMISSIONS.
(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--Certain Fossil Fuel Emissions
``Sec. 4691. Imposition of tax.
``SEC. 4691. IMPOSITION OF TAX.
``(a) Imposition.--Each assessable person shall pay to the
Secretary of the Treasury not later than the applicable payment date a
tax in an amount determined under subsection (b).
``(b) Determination of Amount.--
``(1) In general.--With respect to each assessable person,
the tax under this section shall be equal to an amount that
bears the same ratio to $1,000,000,000,000 as--
``(A) the assessable person's applicable share of
covered carbon dioxide emissions taken into account
under this section, bears to
``(B) the aggregate applicable shares of covered
carbon dioxide emissions of all assessable persons
taken into account under this section.
``(2) Determination of applicable share.--
``(A) In general.--The applicable share of covered
carbon dioxide emissions taken into account under this
section for any assessable person shall be the excess
(if any) of--
``(i) the covered carbon dioxide emissions
attributable to such person (determined in
metric tons), as determined by the Secretary
based on product-related carbon dioxide
emissions of such person, over
``(ii) 1,000,000,000 metric tons.
``(B) Adjustment.--The Secretary may adjust the
amount determined under subparagraph (A)(i) with
respect to an assessable person who is described in
subsection (c)(2)(B)(ii) (or who is a successor in
interest to a person described in such subsection) if
such person establishes to the satisfaction of the
Secretary that a portion of such amount was--
``(i) attributable to the extraction of
crude oil by another assessable person who is
described in subsection (c)(2)(B)(i) (or a
successor in interest to a person described in
such subsection), and
``(ii) taken into account in determining
such amount for such other assessable person.
``(c) Assessable Person.--For purposes of this section--
``(1) In general.--The term `assessable person' means--
``(A) any person that is described in paragraph
(2), or
``(B) any successor in interest to a person
described in paragraph (2).
``(2) Person described.--A person is described in this
paragraph if such person--
``(A) is a United States person or is engaged in a
trade or business within the United States during the
period beginning on the date of the enactment of this
Act and ending on December 31, 2025,
``(B) during any part of the covered period, was
engaged in the trade or business of--
``(i) extracting any fossil fuel, or
``(ii) refining any crude oil, and
``(C) is determined by the Secretary to be
responsible for more than 1,000,000,000 metric tons of
covered carbon dioxide emissions.
``(3) Controlled groups.--
``(A) In general.--For purposes of this subsection,
all persons treated as a single employer under
subsection (a) or (b) of section 52 or subsection (m)
or (o) of section 414 shall be treated as a single
assessable person.
``(B) Inclusion of foreign corporations.--For
purposes of subparagraph (A), in applying subsections
(a) and (b) of section 52 to this section, section 1563
shall be applied without regard to subsection (b)(2)(C)
thereof.
``(4) Joint and several liability.--If more than one person
is liable for payment of the tax under subsection (a) with
respect to a single assessable person by reason of the
application of paragraph (3), all such persons shall be jointly
and severally liable for payment of such tax.
``(d) Other Definitions and Rules.--For purposes of this section--
``(1) Applicable payment date.--The term `applicable
payment date' means September 30, 2026.
``(2) Covered carbon dioxide emissions.--The term `covered
carbon dioxide emissions' means, with respect to any person,
the total quantity of carbon dioxide released into the
atmosphere during the covered period by reason such person
engaging in the trade or business of extracting fossil fuels or
of refining crude oil.
``(3) Covered period.--The term `covered period' means the
period that--
``(A) began on January 1, 2000, and
``(B) ended on December 31, 2023.
``(4) Fossil fuel.--The term `fossil fuel' means coal,
crude oil, and fuel gases.
``(5) Coal.--The term `coal' means anthracite, bituminous,
subbituminous, and lignite coal.
``(6) Crude oil.--The term `crude oil' means oil or
petroleum of any kind and in any form, including bitumen, oil
sands, heavy oil, conventional and unconventional oil, shale
oil, natural gas liquids, condensates, and related fossil fuel
liquids.
``(7) Fuel gases.--The term `fuel gases' means natural gas,
associated natural gas, conventional and unconventional gas,
shale gas, and related methane gas production.
``(8) Determination of carbon dioxide emissions.--In
determining the amount of carbon dioxide emissions with respect
to any assessable person--
``(A) an amount equivalent to 942.5 metric tons of
carbon dioxide shall be treated as released for every
1,000,000 pounds of coal,
``(B) an amount equivalent to 432,180 metric tons
of carbon dioxide shall be treated as released for
every 1,000,000 barrels of crude oil, and
``(C) an amount equivalent to 54,440 metric tons of
carbon dioxide shall be treated as released for every
1,000,000,000 cubic feet of fuel gases.
``(e) Election To Pay Liability in Installments.--
``(1) In general.--An assessable person may elect to pay
the tax under this section in 9 annual installments of the
following amounts:
``(A) 20 percent of the tax under this section in
the case of the first installment.
``(B) 10 percent of the tax under this section in
each of the following 8 installments.
``(2) Date for payment of installments.--If an election is
made under paragraph (1), the first installment shall be paid
on the applicable payment date and each succeeding installment
shall be paid on the same date as the applicable payment date
for each calendar year following the calendar year with respect
to which the preceding installment was made.
``(3) Acceleration of payment.--If there is an addition to
tax for failure to timely pay any installment required under
this subsection, a liquidation or sale of substantially all the
assets of the assessable person (including in a title 11 or
similar case), a cessation of business by the assessable
person, or any similar circumstance, then the unpaid portion of
all remaining installments shall be due on the date of such
event (or in the case of a title 11 or similar case, the day
before the petition is filed). The preceding sentence shall not
apply to the sale of substantially all the assets of an
assessable person to a buyer if such buyer enters into an
agreement with the Secretary under which such buyer is liable
for the remaining installments due under this subsection in the
same manner as if such buyer were the assessable person.
``(4) Proration of deficiency to installments.--If an
election is made under paragraph (1) to pay the tax under this
section in installments and a deficiency has been assessed with
respect to such tax, the deficiency shall be prorated to the
installments payable under paragraph (1). The part of the
deficiency so prorated to any installment the date for payment
of which has not arrived shall be collected at the same time
as, and as a part of, such installment. The part of the
deficiency so prorated to any installment the date for payment
of which has arrived shall be paid upon notice and demand from
the Secretary. This subsection shall not apply if the
deficiency is due to negligence, to intentional disregard of
rules and regulations, or to fraud with intent to evade tax.
``(5) Election.--Any election under paragraph (1) shall be
made not later than the applicable payment date and shall be
made in such manner as the Secretary shall provide.
``(6) Installments not to prevent credit or refund of
overpayments or increase estimated taxes.--If an election is
made under paragraph (1) to pay the tax under this section in
installments--
``(A) no installment of such tax shall--
``(i) in the case of a request for credit
or refund, be taken into account as a liability
for purposes of determining whether an
overpayment exists for purposes of section 6402
before the date on which such installment is
due, or
``(ii) for purposes of sections 6425, 6654,
and 6655, be treated as a tax imposed by
section 1, section 11, or subchapter L of
chapter 1, and
``(B) the first sentence of section 6403 shall not
apply with respect to any such installment.
``(f) Regulations.--Not later than 18 months after the date of
enactment of this section, the Secretary shall promulgate such
regulations as are necessary to carry out this section.''.
(b) No Deduction.--Section 275(a) of such Code is amended by adding
at the end the following new paragraph:
``(7) Taxes imposed by subchapter E of chapter 38.''.
(c) Clerical Amendment.--The table of subchapters for chapter 38 of
such Code is amended by adding at the end the following new item:
``subchapter e--certain fossil fuel emissions''.
SEC. 4. POLLUTER PAYS CLIMATE CHANGE FUND.
(a) Establishment of Fund.--
(1) In general.--Subchapter A of chapter 98 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 9512. POLLUTERS PAY CLIMATE FUND.
``(a) Establishment.--There is established in the Treasury of the
United States a trust fund, to be known as the `Polluters Pay Climate
Fund' (hereinafter in this section referred to as the `Fund'),
consisting of amounts as are appropriated or credited to such Trust
Fund as provided in this section and section 9602(b).
``(b) Transfers.--There are hereby appropriated to the Fund amounts
equivalent to the taxes received in the Treasury under section 4691.
``(c) Expenditures From the Fund.--Amounts in the fund shall be
available, as provided in appropriations Acts, for the purpose of
making expenditures to carry out the purposes of section 4(b) of the
Polluters Pay Climate Fund Act of 2025.''.
(2) Clerical amendment.--The table of sections for
subchapter A of chapter 98 of such Code is amended by adding at
the end the following new item:
``Sec. 9512. Polluters Pay Climate Fund.''.
(b) Expenditures From Fund.--
(1) Definitions.--In this subsection:
(A) Administrator.--The term ``Administrator''
means the Administrator of the Environmental Protection
Agency.
(B) Environmental justice community.--The term
``environmental justice community'' means a community
with significant representation of communities of
color, low-income communities, or Tribal and Indigenous
communities that experiences, or is at risk of
experiencing, higher or more adverse human health or
environmental effects as compared to other communities.
(C) Fund.--The term ``Fund'' means the Polluters
Pay Climate Change Fund established under section 9512
of the Internal Revenue Code of 1986.
(D) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury.
(2) Use of fund amounts.--
(A) General purposes.--The Secretary, in
consultation with the Administrator and the heads of
other relevant agencies, shall use amounts in the Fund
for the purposes of furthering a comprehensive and
equitable Federal response to climate change impacts
through investments in climate resilience, adaptation,
disaster response, and environmental justice,
including--
(i) climate-related disaster recovery and
mitigation support;
(ii) climate change adaptation support
through climate and disaster planning
assistance, funding for climate-resilient
infrastructure, and improved climate and
extreme weather prediction capabilities;
(iii) initiatives that increase the climate
resilience of energy systems through energy
efficiency, grid resilience, and distributed
electricity generation initiatives;
(iv) initiatives that increase the climate
resilience of the food system through support
for climate-resilient farming practices;
(v) initiatives that increase the climate
resilience of the transportation system through
planning and climate change adaptation support;
(vi) initiatives that increase the climate
resilience of ecosystems through conservation,
restoration, and wildfire management
activities;
(vii) support for climate-related public
health initiatives, including efforts to
address extreme heat; and
(viii) initiatives that increase the
climate resiliency of drinking water and
stormwater infrastructure.
(B) Specified uses.--In carrying out subparagraph
(A) each fiscal year and to the greatest extent
practicable, the Secretary shall use amounts in the
Fund--
(i) to provide funding of not less than
$15,000,000,000 to the Federal Emergency
Management Agency for response and resilience
programs of the Federal Emergency Management
Agency to address climate-related disasters,
including hurricanes, flooding, extreme heat,
and wildfires, of which not less than
$3,000,000,000 shall be used to carry out the
Building Resilient Infrastructure and
Communities program under section 203 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5133); and
(ii) to provide funding of not less than
$6,000,000,000 for grants and technical
assistance under section 138 of the Clean Air
Act (42 U.S.C. 7438), subject to the condition
that the Administrator may determine the
appropriate amounts to be used for those grants
and that technical assistance.
(C) Environmental justice set aside.--Of the
amounts appropriated from the Fund each fiscal year, 40
percent shall be used for investments that benefit
environmental justice communities.
(D) Selection.--For the purpose of determining how
to award amounts appropriated from the Fund in excess
of the amounts required to be used under subparagraph
(B), the Secretary, in coordination with the
Administrator and the heads of other relevant agencies,
shall establish selection criteria, which shall give
the highest priority to projects or other activities
that are most impactful in achieving the purposes
described in subparagraph (A), as determined by the
Secretary, in coordination with the Administrator and
the heads of other relevant agencies.
SEC. 5. AVAILABILITY OF REMEDIES.
(a) In General.--Nothing in this Act or the amendments made by this
Act shall be construed to relieve any person from liability at common
law or under any State or Federal law.
(b) Effect on Claims Related to Climate Change.--Nothing in this
Act or the amendments made by 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, unit of local government, or
Tribal government under any State or local law (including common law)
relating to an allegation of--
(1) deception concerning the effects of fossil fuel on
climate change;
(2) damage or injury resulting from the role of fossil fuel
in contributing to climate change; or
(3) the failure to avoid damage or injury related to
climate change, including claims for nuisance, trespass, design
defect, negligence, failure to warn, or deceptive or unfair
practices and claims for injunctive, declaratory, monetary, or
other relief.
(c) Rule of Construction.--Nothing in this Act or the amendments
made by this Act shall--
(1) require the repayment of any funds made available from
the Polluter Pays Climate Change Fund established under section
9512 of the Internal Revenue Code of 1986 and used pursuant to
section 4(b) as a result of any award of damages imposed by a
court of law relating to any causes of action or allegations
described in subsection (b); or
(2) permit the use of any such funds--
(A) as evidence in such an action or allegation; or
(B) to offset any award of damages in such an
action or allegation.
SEC. 6. NON-PREEMPTION OF AUTHORITIES.
Nothing in this Act or the amendments made by this Act shall be
construed to preempt or supersede any State or local law, regulation,
policy, or program, including laws, regulations, polices, and programs
that--
(1) limit, set, or enforce standards for greenhouse gas
emissions;
(2) monitor, report, and keep records of greenhouse gas
emissions;
(3) provide cost recovery for climate adaptation,
mitigation, or resilience; or
(4) conduct or support investigations.
<all>