Bill > S1325

This bill establishes a Foreign Pollution Fee Act of 2025, which aims to impose a fee on imported products based on their pollution intensity during production. The bill creates a complex system to calculate and apply fees to imported goods from different countries, with the primary goal of leveling the playing field for American manufacturers and reducing competitive advantages gained by countries with weak environmental standards. The fee will be calculated based on the difference between the pollution intensity of a product's production in its country of origin and the baseline pollution intensity in the United States. Countries can potentially reduce or eliminate the fee by entering into international partnership agreements that establish compatible pollution monitoring and reduction methods. The legislation specifically targets countries like China and Russia, which are accused of having significantly higher carbon emissions in manufacturing. The fee applies to a wide range of products, including aluminum, steel, cement, fertilizers, and solar products, with variable charges that can range from 5% to 100% depending on the pollution intensity difference. The bill also includes provisions for supporting low-income and lower-middle-income countries in transitioning to cleaner manufacturing processes, and establishes an Advisory Committee on Global Pollution Challenges to help implement and refine the fee calculation methods. Importantly, the bill explicitly states that it does not create a domestic carbon tax and is designed to protect American manufacturers while encouraging global environmental improvements.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1325/all-info