Bill > S3523

This bill, titled the "Clean Competition Act," aims to establish a carbon border adjustment mechanism by amending the Internal Revenue Code of 1986 to impose a "carbon intensity charge" on certain imported and domestically produced goods. The core of the bill involves calculating the "carbon intensity," which is the amount of greenhouse gas emissions associated with the production of specific goods, referred to as "covered primary goods," within designated "covered national industries." Companies operating "eligible facilities" in the U.S. will be required to report their emissions and production data, and a charge will be imposed if their carbon intensity exceeds a declining baseline. For imported goods, the carbon intensity will be determined based on the country of origin's general economy, industry data, or manufacturer-specific data, with provisions for estimated intensities for significant imports. The bill also includes mechanisms for rebates on exported goods, potential waivers of charges for countries with equivalent carbon pricing policies, and the establishment of "carbon clubs" with foreign nations that meet specific environmental, labor, and trade standards. Furthermore, it allocates significant funding for programs to support investments in advanced industrial technology and contracts for difference to incentivize lower-carbon production within the U.S., with a focus on reducing emissions and enhancing industrial competitiveness.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3523/all-info