Bill > HR6787

This bill, titled the "Clean Competition Act," proposes to establish a carbon border adjustment mechanism by amending the Internal Revenue Code of 1986. It aims to calculate and impose a "carbon intensity charge" on certain imported goods, referred to as "covered primary goods" and "finished goods," based on the greenhouse gas emissions associated with their production. The bill outlines detailed requirements for reporting carbon intensity, including domestic reporting by "covered entities" (companies producing covered primary goods) and the calculation of emissions for both domestic production and imports. For imports, the carbon intensity will be determined based on the country of origin's general economy, its specific industry, or manufacturer data, with provisions for estimations if reliable data is unavailable. The charge will be imposed if the carbon intensity of an imported good exceeds a declining percentage of the U.S. industry's baseline carbon intensity, with the cost of pollution escalating annually. The bill also includes provisions for rebates on exported goods, potential waivers for countries with comparable carbon pricing policies, and the establishment of "carbon clubs" with foreign nations that meet specific environmental, labor, and trade standards. Furthermore, it introduces programs to invest in advanced industrial technology and offer contracts for difference to support U.S. industries in reducing their carbon intensity and enhancing competitiveness. Finally, the bill allocates significant funding for these initiatives and for international climate and clean energy programs.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6787/all-info