Clean Competition Act
Sponsored By: Senator Sen. Whitehouse, Sheldon [D-RI]
Introduced
Summary
Creates a carbon‑intensity charge and border adjustment tied to reported facility emissions. It pairs that charge with large DOE investment programs and a State Department fund to negotiate international "carbon clubs" that can get charge waivers.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
International climate aid and carbon clubs
The bill would appropriate $25 billion to the State Department in FY2027 for climate and clean energy assistance and to help form "carbon club" agreements. Later funding would equal 25% of annual Subchapter E revenue increases once Treasury finds those revenues reach $100 billion. The Secretary of State would prioritize carbon club talks, assistance to partner countries, maximizing emissions reductions, securing low‑carbon inputs, supporting development, and advancing security and diplomacy.
DOE industrial grants and contracts
The bill would give the Department of Energy $75 billion for FY2027 to run competitive investment programs and a contracts‑for‑difference program. Contracts would pay winners the difference between a strike price and market value each year and require at least 20% carbon intensity reduction at start. Investment awards would require at least 50% project cost share and 20% intensity cuts for existing plants. Contracts and grants must meet wage and community benefit rules, include recapture penalties, and the Secretary would set auction guidance at least 180 days before auctions and publish rules within one year of enactment.
New carbon fee on covered goods
This bill would create a new per‑ton carbon charge on covered primary goods made in the U.S. or imported after Dec. 31, 2025. The charge would be the extra carbon per unit times the quantity times a per‑ton "cost of pollution" starting at $60 in 2026 and rising each year with CPI plus 6 percentage points. The law would set how to count a facility's emissions (including electricity) and how to compute facility and industry carbon intensity. Covered facilities would have to report data starting June 30, 2026, and pay charges by Sept. 30 of the year after production or import.
Import rules, exemptions, and credits
This bill would set multiple ways to assign a carbon intensity to imports: a default economy‑wide formula, country‑industry data for transparent markets, approved manufacturer data, or Secretary estimates when data are weak. Finished‑goods imports would be charged based on their covered primary‑good inputs, with tightening weight and value thresholds in 2028–2029 and 2030–2031 and Secretary limits after 2031. The bill would exclude goods from relatively least developed countries unless that country supplies 3% or more of global exports of the good. Exporters could get refunds equal to charges they would have paid, and verified direct air capture removals could reduce charges up to a capped limit. The Secretary could reject petitions or actions that look like "resource shuffling."
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Sponsors & CoSponsors
Sponsor
Sen. Whitehouse, Sheldon [D-RI]
RI • D
Cosponsors
Richard Blumenthal
CT • D
Sponsored 12/17/2025
Sen. Heinrich, Martin [D-NM]
NM • D
Sponsored 12/17/2025
Sen. Schatz, Brian [D-HI]
HI • D
Sponsored 12/17/2025
Peter Welch
VT • D
Sponsored 12/17/2025
Chris Van Hollen
MD • D
Sponsored 12/17/2025
Roll Call Votes
No roll call votes available for this bill.
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