[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7194 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7194

To distribute proceeds from greenhouse gas emissions allowance auctions 
 to low and moderate income households, through refundable tax credits 
for wage earners and senior citizens and monthly rebates to low-income 
 citizens, to offset any loss in purchasing power such households may 
 experience as a result of the regulation of greenhouse gas emissions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 2008

  Ms. Solis introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
    Energy and Commerce and Education and Labor, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To distribute proceeds from greenhouse gas emissions allowance auctions 
 to low and moderate income households, through refundable tax credits 
for wage earners and senior citizens and monthly rebates to low-income 
 citizens, to offset any loss in purchasing power such households may 
 experience as a result of the regulation of greenhouse gas emissions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Climate Change 
Rebate Act of 2008''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Rebate financing.
Sec. 3. Climate change tax credit for working families and senior 
                            citizens.
Sec. 4. Climate change rebates for low-income households.
Sec. 5. LIHEAP and weatherization.

SEC. 2. REBATE FINANCING.

    If Federal legislation is enacted that would limit the emission of 
greenhouse gasses, 35 percent of the total value of emissions 
allowances created by such legislation shall be auctioned each year and 
the receipts from that auction deposited in the Treasury, for the 
purpose of carrying out the purposes of this Act.

SEC. 3. CLIMATE CHANGE TAX CREDIT FOR WORKING FAMILIES AND SENIOR 
              CITIZENS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 37 as section 38 and by inserting 
after section 36 the following new section:

``SEC. 37. CLIMATE CHANGE TAX CREDIT.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by this subtitle 
for the taxable year an amount equal to the energy cost increase 
attributable to carbon regulation.
    ``(b) Energy Cost Increase Attributable to Carbon Regulation.--For 
purposes of this section--
            ``(1) In general.--The energy cost increase attributable to 
        carbon regulation for any taxable year shall be an amount equal 
        to the applicable percentage of the base projected energy cost 
        increase.
            ``(2) Applicable percentage.--The applicable percentage 
        shall be determined in accordance with the following table:

 
------------------------------------------------------------------------
                                                                 The
                                                             applicable
        ``In the case of:                   With:            percentage
                                                                 is:
------------------------------------------------------------------------
An eligible individual making a   No qualifying children..          155
 joint return...................
                                  1 qualifying child......          180
                                   2 or more qualifying             200
                                   children.
 
An eligible individual not        No qualifying children..          100
 making a joint return..........
                                   1 qualifying child.....          155
                                   2 qualifying children..          180
------------------------------------------------------------------------

            ``(3) Base projected energy cost increase.--The term `base 
        projected energy cost increase' means the base projected cost 
        increase in effect under the Climate Change Rebate Program 
        (section 4 of the Climate Change Rebate Act of 2008) for the 
        calendar in which the taxable year of the taxpayer begins.
    ``(c) Limitations.--
            ``(1) Phase-in.--In the case of a taxpayer with earned 
        income for the taxable year of less than $8,000 ($13,500 in the 
        case of a joint return or head of household), the amount 
        allowed as a credit under subsection (a) shall not exceed the 
        amount which bears the same ratio to the amount which would be 
        so allowed as--
                    ``(A) the earned income of the taxpayer for the 
                taxable year, bears to
                    ``(B) $8,000 ($13,500 in the case of a joint return 
                or head of household).
            ``(2) Phase-out.--
                    ``(A) In general.--The amount which would (but for 
                this paragraph) be allowed as a credit under subsection 
                (a) shall be reduced (but not below zero) by the amount 
                determined under subparagraph (B).
                    ``(B) Amount of reduction.--The amount determined 
                under this subparagraph is the amount which bears the 
                same ratio to the amount which would be so allowed as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's adjusted gross 
                                income (or, if greater, earned income) 
                                for the taxable year, over
                                    ``(II) the applicable amount, bears 
                                to
                            ``(ii) the applicable denominator.
                    ``(C) Applicable amount; applicable denominator.--
                The applicable amount and applicable denominator shall 
                be determined in accordance with the following table:

 
------------------------------------------------------------------------
                                                                 The
                                                    The       applicable
               ``In the case of:                 applicable  denominator
                                                 amount is:      is:
------------------------------------------------------------------------
An eligible individual making a joint return..      $40,000      $40,000
An eligible individual with one or more             $30,000      $30,000
 qualifying children and not making a joint
 return.......................................
Any other eligible individual.................      $20,000      $20,000
------------------------------------------------------------------------

    ``(d) Definitions and Special Rules.--
            ``(1) Eligible individual.--For purposes of this section--
                    ``(A) In general.--The term `eligible individual' 
                means, with respect to a taxable year, any individual 
                who--
                            ``(i) has earned income for such taxable 
                        year, and
                            ``(ii) is not a dependent for whom a 
                        deduction is allowable under section 151 to 
                        another taxpayer for any taxable year beginning 
                        in the same calendar year as such taxable year.
                    ``(B) Certain eligible individual rules made 
                applicable.--Rules similar to the rules of 
                subparagraphs (B) through (F) of section 32(c)(1) shall 
                apply.
            ``(2) Earned income qualifying child.--For purposes of this 
        section, the term `earned income' shall have the meaning given 
        such term by section 32(c).
            ``(3) Qualifying child.--For purposes of this section, the 
        term `qualifying child' shall have the meaning given such term 
        by section 24.
            ``(4) Married individuals.--In the case of an individual 
        who is married (within the meaning of section 7703), this 
        section shall apply only if a joint return is filed for the 
        taxable year under section 6103.
            ``(5) Coordination with climate change rebate program.--
                    ``(A) In general.--The amount which would be 
                allowed as a credit to a taxpayer under subsection (a) 
                shall, before the application of subsection (c), be 
                reduced (but not below zero) by the amounts received by 
                the taxpayer under the Climate Change Rebate Program 
                under section 4 of the Climate Change Rebate Act of 
                2008 for months beginning in the taxable year.
                    ``(B) Allocation of climate change rebates.--For 
                purposes of this subparagraph, in the case of 2 or more 
                eligible individuals who are members of the same 
                household (as defined for purposes of the Climate 
                Change Rebate Program) with respect to which an amount 
                is received under such program for any month, for each 
                such month beginning in the taxable year such an 
                individual shall be treated as receiving an amount 
                equal to--
                            ``(i) the amount received with respect to 
                        such household for such month, divided by
                            ``(ii) the number of eligible individuals 
                        who are members of such household at the 
                        beginning of such month.
    ``(e) Senior Climate Change Credit.--
            ``(1) In general.--In the case of an individual with 
        qualifying retirement income for the taxable year, the taxpayer 
        may elect to apply subsections (c) and (d)(1) by substituting 
        `qualifying retirement income' for `earned income'.
            ``(2) Limitation.--If the taxpayer makes the election 
        described in paragraph (1) for the taxable year, the amount 
        allowed as a credit under subsection (a) for such taxable year 
        shall not exceed an amount equal to 50 percent of the amount 
        which would (but for this paragraph) be so allowed.
            ``(3) Qualifying income.--For purposes of this section, the 
        term `qualifying retirement income' means--
                    ``(A) a distribution (other than a rollover) from--
                            ``(i) a plan described in section 401(a) 
                        which includes a trust exempt from tax under 
                        section 501(a),
                            ``(ii) an annuity plan described in section 
                        403(a),
                            ``(iii) an annuity contract described in 
                        section 403(b),
                            ``(iv) an individual retirement account 
                        described in section 408(a),
                            ``(v) an individual retirement annuity 
                        described in section 408(b),
                            ``(vi) a Roth IRA (as defined in 408A(b)),
                            ``(vii) an eligible deferred compensation 
                        plan (as defined in section 457),
                            ``(viii) a governmental plan (as defined in 
                        section 414(d)),
                            ``(ix) a trust described in section 
                        501(c)(18), or
                            ``(x) any other plan, contract, account, 
                        annuity, or trust which, at any time, has been 
                        determined by the Secretary to be such a plan, 
                        contract, account, annuity, or trust,
                    ``(B) social security benefits (within the meaning 
                of section 86(d)),
                    ``(C) any compensation or pension received under 
                chapter 11, chapter 13, or chapter 15 of title 38, 
                United States Code, and
                    ``(D) any other amount received which is in the 
                nature of a retirement benefit payment.''.
    (b) Conforming Amendments.--(1) Section 1324(b)(2) of title 31, 
United States Code, is amended by inserting ``37,'' after ``36,''.
    (2) Subparagraph (A) of section 6211(b)(4) of the Internal Revenue 
Code of 1986 is amended by inserting ``37,'' after ``36,''.
    (c) Clerical Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of such Code is amended by 
striking the item relating to section 37 and inserting the following 
new items:

``Sec. 37. Climate change tax credit.
``Sec. 38. Overpayments of tax.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 4. CLIMATE CHANGE REBATES FOR LOW-INCOME HOUSEHOLDS.

    (a) Definitions.--For purposes of this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency or, if the 
        President designates an alternative agency under subsection 
        (b)(1), the head of such agency.
            (2) Base projected cost increase.--The term ``base 
        projected cost increase'' means an amount equal to the 
        projected average annual reduction in purchasing power for a 1-
        person household in the second lowest quintile of the income 
        scale, that results from the regulation of greenhouse gas 
        emissions under any Federal legislation is enacted on or after 
        the date of the enactment of this Act that would limit the 
        emission of greenhouse gasses in connection with the sale of 
        emission allowances, provided that each quintile shall--
                    (A) be based on income adjusted for household size; 
                and
                    (B) have an equal aggregate number of individuals.
            (3) Elderly or disabled member.--The term ``elderly or 
        disabled member'' has the meaning given such term in section 3 
        of the Food and Nutrition Act of 2008 (7 U.S.C. 2012).
            (4) Electronic benefit transfer card.--The term 
        ``electronic benefit transfer card'' means a card that makes a 
        rebate provided under the Program accessible to a household 
        through an Electronic Benefits Transfer System.
            (5) Electronic benefit transfer system.--The term 
        ``Electronic Benefit Transfer System'' means a system by which 
        rebates provided under the Program are issued from and stored 
        in a central databank by means of electronic benefit transfer 
        cards.
            (6) Household.--(A) Subject to subparagraph (B), the term 
        ``household'' means--
                    (i) an individual who lives alone; or
                    (ii) a group of individuals who live together.
            (B) For purposes of subparagraph (A)--
                    (i) an individual or a group of individuals who are 
                a household under the Food and Nutrition Act of 2008 (7 
                U.S.C. 2012) shall be considered a household;
                    (ii) a single individual or married couple who 
                receive benefits under Section 1860D-14 of the Social 
                Security Act (42 U.S.C 1395w-114) shall be considered a 
                household;
                    (iii) notwithstanding Section 4(d)(2) of this Act, 
                the Administrator shall establish rules for providing 
                the Climate Change Rebate in an equitable and 
                administratively simple manner to ``mixed households'' 
                where the group of individuals who live together 
                includes a combination of members described in clause 
                (i) and clause (ii), or includes additional members not 
                described in clause (i) or clause (ii).
            (7) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, American Samoa, the United States Virgin Islands, Guam, 
        or the Commonwealth of the Northern Mariana Islands.
            (8) State agency.--The term ``State agency'' means--
                    (A) an agency of a State (including the local 
                offices of such agency) that has the responsibility for 
                the administration of federally aided public assistance 
                programs in such State; or
                    (B) in a State in which such programs are operated 
                on a decentralized basis, the corresponding local 
                agencies that administer such programs.
            (9) Poverty line.--The term ``poverty line'' has the 
        meaning given such term in section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)), including any 
        revision required by such section.
    (b) Climate Change Rebate Program.--
            (1) Formulation and administration of program.--The 
        Administrator of the Environmental Protection Agency, or the 
        head of such other Executive agency (as defined in section 105 
        of title 5 of the United States Code) as the President may 
        designate, shall formulate and administer in accordance with 
        this section a program to be known as the ``Climate Change 
        Rebate Program'' (in this section referred to as the 
        ``Program'').
            (2) State participation in the program.--At the request of 
        a State, eligible households in such State shall be provided an 
        opportunity to receive compensation through the issuance of a 
        rebate in accordance with this section for the reduction in 
        purchasing power resulting from the regulation of greenhouse 
        gas emissions under any Federal legislation described in 
        subsection (a)(2).
    (c) Eligibility.--Subject to subsection (d), a household shall be 
eligible to participate in the Program if the State agency designated 
by the chief executive officer of such State to carry out the Program 
in such State determines that--
            (1) such household contains 1 or more individuals who 
        participate in the supplemental nutrition assistance program 
        under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et 
        seq.);
            (2) such household, without regard to whether such 
        household includes an elderly or disabled member, meets--
                    (A) the gross income standard described in section 
                5(c)(2) of the Food and Nutrition Act of 2008 (7 U.S.C. 
                2014(c)(2)); and
                    (B) the financial resources limit in effect for the 
                State in which such household is located under section 
                5(g) the Food and Nutrition Act of 2008 (7 U.S.C. 
                2014(g));
            (3) such household consists of 1 or more individuals who 
        are subsidy eligible individuals (as defined in section 1860D-
        14 of the Social Security Act (42 U.S.C. 1395w-114)); or
            (4) such household consists of 1 or more individual who are 
        eligible for benefits under title XVIII of the Social Security 
        Act and who meet the income requirements described in paragraph 
        (1) or (2) of section 1860D-14(a) of such Act and the resource 
        requirements described in subparagraphs (D) and (E) of section 
        1860D-14(a)(3).
    (d) Limitations.--The Administrator shall establish procedures to 
ensure that households do not receive more than 1 rebate per month.
    (e) Rebate Calculation.--
            (1) Base projected cost increase.--Not later than October 1 
        of 2009, and of each subsequent calendar year, the 
        Administrator of the Energy Information Administration shall 
        calculate and publish the base projected cost increase for the 
        following year.
            (2) Maximum rebate amount.--The maximum rebate amount for 
        each month of a calendar year shall be--
                    (A) set by the Administrator; and
                    (B) equal to \1/12\ of--
                            (i) 100 percent of the base projected cost 
                        increase for a household containing 1 
                        individual;
                            (ii) 155 percent of the base projected cost 
                        increase for a household containing 2 
                        individuals;
                            (iii) 180 percent of the base projected 
                        cost increase for a household containing 3 
                        individuals; and
                            (iv) 200 percent of the base projected cost 
                        increase for a household containing 4 or more 
                        individuals.
            (3) Monthly rebate amounts.--Eligible households shall 
        receive a monthly rebate calculated in the following manner:
                    (A) A household with gross income, as determined in 
                the manner provided in section 5 of the Food and 
                Nutrition Act of 2008 (7 U.S.C. 2014), that is not more 
                than 50 percent of the poverty line shall receive the 
                maximum rebate amount for a household of equal size.
                    (B) A household with gross income, as determined in 
                the manner provided in section 5 of the Food and 
                Nutrition Act of 2008 (7 U.S.C. 2014), that is greater 
                than 50 percent of the poverty line and not more than 
                130 percent of the poverty line shall receive a rebate 
                in an amount determined in accordance with a schedule 
                of phase-down rates based on household size, 
                established by the Administrator and specifying the 
                amount by which the otherwise applicable maximum rebate 
                amount shall be reduced for each dollar by which such 
                gross income exceeds 50 percent of the poverty line. 
                The phase-down rate shall be--
                            (i) for household sizes of 4 or fewer 
                        individuals, equal to the maximum rebate amount 
                        divided by 80 percent of the poverty line 
                        applicable to the particular household size 
                        involved; and
                            (ii) for household sizes of 5 or more 
                        individuals, equal to a rate determined in 
                        accordance with a methodology established by 
                        the Administrator.
                    (C) Households with gross income exceeding 130 
                percent of the poverty line shall not be eligible to 
                receive a rebate under the Program.
            (4) Special rule for household with elderly or disabled 
        member.--Notwithstanding paragraph (3), households with 1 or 
        more members who are elderly or disabled shall receive the 
        maximum monthly rebate amount for a household of equal size.
    (f) Schedule and Standards for Implementation of Program.--The 
Administrator shall establish by rule a schedule and standards to 
implement the Program. Such standards shall--
            (1) specify the required level of household protection 
        regarding privacy, ease of rebate use, and access to the 
        rebates under the Program;
            (2) prohibit the imposition of any fee on a household for 
        the withdrawal or expenditure of any part of such rebates;
            (3) require States participating in the Program to provide 
        such rebates to recipient households through an Electronic 
        Benefit Transfer System or by direct deposits into accounts 
        established by household members at financial institutions; and
            (4) provide for the interoperability of the Program among 
        States and among law enforcement authorities that monitor 
        compliance with the Program.
    (g) State Administration of Program.--A participating State, and 
the State agency designated under subsection (b), shall be responsible 
for--
            (1) certifying the eligibility of households to receive 
        rebates under the Program; and
            (2) issuance and control of rebates, and accountability 
        therefor.
    (h) Reimbursement of State Administrative Costs.--Subject to 
standards established by the Administrator, the Administrator shall 
reimburse each participating State as follows for administrative costs 
incurred by the designated State agency to carry out the Program:
            (1) For 3 years such costs shall be reimbursed at the rate 
        of--
                    (A) 90 percent of any automated data processing 
                improvement, and Electronic Benefit Transfer contract 
                amendment, necessary to provide rebates under the 
                Program; and
                    (B) 75 percent of such costs remaining.
            (2) For subsequent years such costs shall be reimbursed at 
        the rate of 50 percent.
    (i) Treatment of Rebates.--The amount of any rebate received under 
the Program shall not be considered to be income or resources for any 
purpose under any Federal, State, or local law, including any law 
relating to taxation (including income tax) or public assistance 
(including programs that provide health care, cash aid, child care, 
nutrition assistance, and housing assistance). No participating State 
(or political subdivision thereof) shall decrease any assistance 
otherwise provided to an individual or a household based on the fact 
that a household applied for or received a rebate under the Program.

SEC. 5. LIHEAP AND WEATHERIZATION.

    (a) Deposit of Auction Receipts.--If Federal legislation is enacted 
that would limit the emission of greenhouse gases in the United States, 
1 percent of the total value of emission allowances created by such 
legislation shall be auctioned each year, and the receipts from that 
auction shall be deposited in the Treasury for use under subsection 
(b).
    (b) Use of Receipts.--Of the receipts deposited in the Treasury 
under subsection (a), 50 percent shall be for the Low-Income Home 
Energy Assistance Program, and 50 percent shall be for the 
Weatherization Assistance Program under part A of title IV the Energy 
Conservation and Production Act (42 U.S.C. 6861 et seq.), to the extent 
provided in appropriations Acts, to remain available until expended.
                                 <all>