To advance sensible priorities.
Sponsored By: Representative Rep. Fitzpatrick, Brian K. [R-PA-1]
In Committee
Summary
Creates a new federal greenhouse gas emissions tax and matching border adjustments that charge owners of fossil fuels, large industrial facilities, and certain product emissions while adjusting import and export competitiveness. The tax starts at $35 per metric ton of CO2e in 2027 and rises each year with a fixed escalation plus inflation adjustments.
Show full summary
- Owners of U.S. fossil fuels and operators of large facilities pay the tax at production, refinery exit, or facility point of combustion. The bill covers industrial process emissions and specified product-use emissions and targets facilities emitting more than 25,000 metric tons CO2e per year.
- Importers of covered goods face a border tax adjustment while exporters in eligible industrial sectors can receive rebates; rules will define covered products, rates, exemptions for least-developed countries, and an administrative appeals process.
- Creates a Revenue Reallocation Trust Fund to allocate tax revenues and funds programs including flood mitigation grants for States, localities, and Tribes with up to a 90% federal share and a 10-year program to assist energy workers displaced by the law with retraining, relocation, pension support, and community grants.
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Bill Overview
Analyzed Economic Effects
14 provisions identified: 8 benefits, 1 costs, 5 mixed.
VA survivor benefits for ALS
If enacted, a veteran who dies from ALS on or after October 1, 2025 would be treated as qualifying for VA survivor compensation rules without regard to how long the disease lasted. A surviving spouse must have been married to the veteran for at least eight continuous years to qualify for compensation under this change.
School door safety and grants
If enacted, CISA would set standards for reinforced interior and exterior doors in federally funded K–12 schools after a committee review and report. The committee must be convened within 90 days and report within one year, and CISA must issue a final rule within six months after the report. The bill would also authorize $100 million per year for the State Homeland Security Grant Program in the year the final rule is issued and for nine years after to help schools pay for door upgrades.
Limits on EPA fuel rules
If enacted, the bill would bar the EPA from issuing or enforcing rules that limit greenhouse gas emissions from fossil fuels after a Subtitle L taxation point. The moratorium preserves EPA authority for non‑GHG health impacts and for new vehicle greenhouse gas standards and waivers. The moratorium would end by January 1, 2039 unless earlier emission triggers cause it to stop in 2031 or 2035. The amendment to section 211 would also bar EPA from imposing fuel requirements to reduce greenhouse gas combustion effects, with limited exceptions.
Wide trade and financial sanctions
If enacted, the President would impose a coordinated set of sanctions on the Russian government and related persons after a covered determination. Measures include massive minimum duties on many imports, bans on Russian uranium and sovereign debt purchases, bans on U.S. investment in Russian energy, blocking property and bank‑account restrictions, and sanctions on global financial messaging providers that keep serving sanctioned banks. The President could lift sanctions only after verifiable cessation and a peace agreement, and sanctions would be reimposed if proscribed acts resume.
Border carbon tax adjustments
If enacted, this would create a border adjustment that charges importers of covered goods an amount like the Subtitle L tax and rebates exporters for domestic carbon costs. Treasury and Customs would set rules and product lists within one year. Sectors meet presumptive help tests (5% greenhouse‑gas intensity and 15% trade intensity) and some poor or low‑emitting countries are exempt. The President may decline to levy the adjustment for a sector after certifying national interests.
New greenhouse gas taxes
If enacted, this would add a new Subtitle L tax on greenhouse gas emissions. The fossil fuel tax would start at $35 per metric ton CO2e in calendar year 2027 and would rise each year by 5 percentage points plus inflation. Facilities emitting over 25,000 metric tons CO2e per year would also face taxes for industrial process and certain product-use emissions. The EPA must set definitions and calculation methods at least one year before the tax year. Nonpayment penalties would equal three times the applicable tax amount. The bill would repeal federal motor vehicle and aviation fuel taxes for transactions after December 31, 2025. Amounts from the tax would mostly flow into a new RISE Trust Fund with set percentage allocations for 2027–2036.
Direct payments for low‑income households
If enacted, the Treasury would make annual grants to each State for distribution to eligible low‑income households from amounts set aside in the bill. Eligible households have gross incomes at or below 150 percent of the poverty line and participate in SNAP, FDPIR, similar territorial nutrition programs, receive SSI, or get certain Medicare low‑income subsidies. Each State's share would roughly match its share of energy‑related greenhouse gas emissions in the prior year. States must tell the Treasury how they will distribute funds before transfers occur.
Help for displaced energy workers
If enacted, the Labor Department would run a 10‑year program to help energy workers displaced by this Act. Assistance would include retraining, relocation costs, early retirement, health benefits, community block grants for local recovery, and limited transfers to certain pension trustees. Eligibility covers fossil‑energy workers displaced by enactment and some nuclear plant workers.
Open federal primaries rule
If enacted, each State would have to let unaffiliated registered voters vote in a federal primary for any one party's primary for a given office. States could not share unaffiliated voters' information from federal primaries with parties or treat the voter as a party member only because they voted in a primary. The Election Assistance Commission would pay certified States an amount equal to 2 percent of their HAVA section 251 requirements payments for the certified year and the four following years to help cover costs.
Grants for flood risk projects
If enacted, Commerce and the Army would run a grant program to fund frequent flood mitigation and adaptation projects for States, local governments, and Tribes. The federal share may be up to 90 percent of project costs. Projects that harm key habitats are ineligible. Priority goes to high‑risk flood areas and projects protecting critical infrastructure.
Prevailing wage for federal projects
If enacted, contractors on projects funded by this title would have to pay workers at least local prevailing wages set under Davis‑Bacon. The Secretary of Labor would determine the rates under existing Davis‑Bacon rules. This would raise pay for some workers and could raise project costs for contractors and recipients.
Veteran firms included in DBE rules
If enacted, veteran‑owned small businesses would be added to Disadvantaged Business Enterprise considerations under prior infrastructure law rules. That change would give veteran‑owned firms more recognition when agencies and contractors consider DBE participation.
State laws kept in force
If enacted, the bill would state that nothing in this title overrides or preempts State laws or regulations. The rule would take effect upon enactment and preserve State authority for matters covered by the title.
House members trading ban
If enacted, Members of the House would be barred from owning or trading many securities, derivatives, commodities, and synthetic financial interests. Exemptions would include mutual funds, U.S. Treasury securities, state or local bonds, and Thrift Savings Plan investments. Each Member would have to pledge compliance and provide documents on request.
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Sponsors & CoSponsors
Sponsor
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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