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119-hr-480119th CongressWALLET
Methane Border Adjustment Mechanism Act
Sponsored By: Representative Brownley, Julia [D-CA-26]
Introduced
Summary
Creates a methane-based border tax on imported petroleum and natural gas to push foreign producers to account for methane emissions. This bill would tie a new tax on imported oil and natural gas to country-level methane emission charges and each importer’s share of that country’s production so imports face a methane price comparable to domestic policy.
Show full summary
- Importers and energy buyers would pay a new tax on petroleum and natural gas they sell or use. The tax is calculated using the producing country’s methane emissions charge under Clean Air Act section 136 and the importer’s share of volume or the energy content for natural gas. The rule applies to sales and uses after December 31, 2025.
- Foreign producers and exporting countries would face pressure to cut methane leaks or adopt matching border mechanisms. The Secretary is directed to encourage the top ten import suppliers without MBAMs to implement equally stringent rules and join an international body created by the act.
- The Treasury Secretary would report every two years on whether to add other oil- and gas-derived substances. An alternative tax method can be used for items where the secretary can trace supply-chain charges and arrange mutual recognition with trusted programs like C-TPAT.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
New methane fee on imported oil and gas
This bill would add a methane fee on imported petroleum and natural gas sold or used by the importer. The fee would equal the import’s share of the producing country’s output times that country’s total methane emissions charge, using data from two calendar years earlier. For natural gas, the rule would use energy content, and an alternative supply‑chain method could apply if the importer provides full data and all involved countries have C‑TPAT mutual recognition. The rules would begin for sales and uses after December 31, 2025, and Treasury would review every two years to consider adding more covered products and to work toward international standards. Importers could pass some costs on to fuel and energy prices.
Sponsors & CoSponsors
Sponsor
Brownley, Julia [D-CA-26]
CA • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov