Bill > HR480

This bill establishes a Methane Border Adjustment Mechanism (MBAM) to impose a tax on imported petroleum and natural gas based on the methane emissions associated with their production in foreign countries. The bill recognizes methane as a potent greenhouse gas that contributes significantly to global warming and poses health risks, and aims to incentivize reduced methane emissions internationally. The tax will be calculated proportionally to the methane emissions in the country of origin, using a methodology that compares the volume or energy content of imported substances to the total production in that country. Importers can alternatively provide detailed supply chain emissions data to calculate a more precise tax. The bill requires the Treasury Secretary to work with an international body to develop standards for tracking methane emissions and to encourage the top 10 oil and gas importing countries without similar mechanisms to implement comparable border adjustment policies. The mechanism will initially cover petroleum and natural gas, with provisions for potentially expanding the list of covered substances every two years after consulting trade commissions. The MBAM is set to take effect on January 1, 2026, and is designed to promote cleaner energy production by creating economic incentives for reducing methane emissions globally.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/480/all-info