1.This Act may be cited as the
Clean Environment and Stable Energy
Market Act of 2009
.
2.Greenhouse Gas
Emission Substances
(a)The Internal Revenue
Code of 1986 is amended by adding at the end the following:
LGreenhouse Gas
Emission Substances
Sec. 9901. Condition precedent to sale or use of greenhouse gas
emission substance.
Sec. 9902. Federal emission permit.
Sec. 9903. Definitions.
Sec. 9904. Regulations.
9901.Condition
precedent to sale or use of greenhouse gas emission substance
(a)No covered person may
sell any greenhouse gas emission substance except pursuant to a Federal
emission permit for each carbon dioxide equivalent that the Administrator of
the Environmental Protection Agency determines would be emitted from the
combustion or other greenhouse gas emitting use of such substance.
(b)For purposes of this subtitle, the term covered
person means—
(1)in the case of coal (including lignite and
peat) produced from a mine in the United States, the producer of such
coal,
(2)in the case of crude oil or petroleum
products received at a United States refinery, the operator of the United
States refinery,
(3)in the case of any
greenhouse gas emission substance not described in paragraph (1) or (2)
produced in the United States, the producer of such substance, and
(4)in the case of any greenhouse gas emission
substance entered into the United States for consumption, use, or warehousing,
the person entering such substance for consumption, use, or warehousing.
(c)
(1)If any person uses a greenhouse gas emission substance
before the first retail sale of such substance, then such person shall be
liable for the purchase of a Federal emission permit under section 9902 in the
same manner as if such substance were sold at retail on the date of such use by
such person pursuant to a Federal emission permit.
(2)Exemption for
use in further manufactureParagraph (1) shall not apply to use
of a greenhouse gas emission substance as material in the manufacture or
production of, or as a component part of, another article to be manufactured or
produced by such person.
(d)Subsection
(a) shall not apply to—
(1)a greenhouse gas
emission substance to be used for noncombustion agricultural purposes,
or
(2)a greenhouse gas
emission substance with respect to which a Federal emission permit has
previously been purchased.
(e)Importation of
Carbon-Intensive Goods
(1)Greenhouse gas
emission permit equivalency feesThe Secretary shall impose a
greenhouse gas emission permit equivalency fee on imports of carbon intensive
goods that shall be equivalent to the cost that domestic producers of
comparable carbon intensive goods incur as a result of—
(A)permit fees paid
by covered persons for greenhouse gas emission substances under this section,
and
(B)greenhouse gas
emission permit equivalency fees paid by importers of carbon intensive goods
used in the production of the comparable carbon intensive goods in
question.
(2)Paragraph
(1) and 6633(b) shall cease to have effect at such time as and to the extent
that—
(A)an international
agreement requiring countries that emit greenhouse gases and produce
carbon-intensive goods for international markets to adopt equivalent measures
comes into effect, and
(B)the country of
export has implemented equivalent measures, and the actions provided for by
paragraph (1) and 6633(b) are no longer appropriate.
9902.
(a)The Secretary shall,
subject to subsection (d), issue Federal emission permits, as provided for in
this subtitle. A Federal emission permit may only be obtained upon making
payment to the Secretary.
(b)Rules relating
to permitsFor purposes of this subtitle—
(1)Each Federal
emission permit shall be denominated in carbon dioxide equivalents.
(2)A Federal emission
permit may only be purchased at the time a greenhouse gas emission substance is
produced or entered into the United States, as the case may be.
(3)A Federal emission
permit may not be sold, exchanged, or otherwise transferred.
(c)
(1)The Secretary, after consultation with the Administrator
of the Environmental Protection Agency and the Secretary of Energy, shall
establish the price of obtaining a Federal emission permit for a calendar year
based on a determination of the dollar amount necessary to ensure that the
demand for permits does not exceed the greenhouse gas emission allocations for
such calendar year.
(2)
(A)Not later than January 1, 2010, and once every 5 years
thereafter, the Secretary shall publish a schedule of the prices determined
under paragraph (1) for obtaining a Federal emission permit during any calendar
year in the 5-calendar-year period beginning 1 year after any such date.
(B)If
in a given 5-year period—
(i)the Secretary
reasonably expects to issue Federal emission permits that (in the aggregate)
significantly exceed or fall short of the national limitation because of the
price set by the Secretary (and not because of temporary fluctuations in the
energy markets or the weather), and
(ii)sufficient time
remains in such period,
the
Secretary shall establish a new schedule of prices for the remaining years in
such 5-year period. Such schedule may not take effect until after 12 months
after the establishment of such schedule.(C)Number of
modifications permittedIn the first 5-year period, the Secretary
may change the schedule of prices under subparagraph (B) a maximum to two
times. In any ensuing 5-year period, the Secretary may change the schedule of
prices under subparagraph (B) a maximum of once.
(d)
(1)There is a national greenhouse gas emission allocation
limitation for any calendar year. Such limitation for a calendar year shall be
the sum of—
(A)the greenhouse gas
emission allocations specified in the table in paragraph (3) for such calendar
year reduced pursuant to paragraph (2) for such calendar year, plus
(B)the additional allocation of Federal
emission permits issued by the Secretary for such calendar year to the extent
that applications for Federal emission permits exceed the greenhouse gas
emission allocations specified in the table in paragraph (3) for such calendar
year.
(2)Reduction
required over remaining yearsAfter issuing additional
allocations under paragraph (1)(B) during any 5-calendar-year period, the
number of the greenhouse gas emission allocations specified in the table in
paragraph (3) shall be reduced ratably the aggregate number of such additional
allocations over the years specified in such table remaining after such
period.
(3)Annual
economy-wide greenhouse gas emission allocationsThe greenhouse
gas emission allocations for a calendar year are those specified in the
following table:
Calendar YearUnited States Economy-Wide
Greenhouse Gas Emission Allocations (in Millions of Carbon Dioxide
Equivalents)
20116835.29
20126670.58
20136505.87
20146341.16
20156176.45
20166011.74
20175847.03
20185682.32
20195517.61
20205352.9
20215110.99
20224880
20234659.5
20244448.93
20254247.89
20264055.93
20273872.64
20283697.63
20293530.54
20303370.99
20313218.66
20323073.2
20332934.33
20342801.72
20352675.11
20362554.23
20372438.8
20382328.59
20392223.36
20402122.89
20412026.95
20421935.36
20431847.9
20441764.39
20451684.66
20461608.53
20471535.84
20481466.43
20491400.16
20501336.89.
(e)Not
later than January 1, 2012, and annually thereafter, the Secretary shall
publish a report describing the extent to which the United States greenhouse
gas emission allocations specified under subsection (d) are being achieved.
Such report shall include—
(1)an explanation of
the methodology and assumptions the Secretary has used in establishing prices
under this section, and
(2)an estimation, or range of estimations, of
the price of permits for the 10-year period following the current 5-year
period.
9903.
(a)For purposes of this
subtitle—
(1)The
term Administrator means the Administrator of the Environmental
Protection Agency.
(2)Carbon dioxide
equivalentThe term carbon dioxide equivalent means,
for each greenhouse gas emission substance, the quantity of the greenhouse gas
emission substance that the Administrator determines makes the same
contribution to global warming as 1 metric ton of carbon dioxide.
(3)Greenhouse gas
emission substanceThe term greenhouse gas emission
substance means—
(A)coal (including lignite, peat, and
derivatives of coal), to be used as a combustion fuel,
(B)petroleum and any
petroleum product, to be used as a combustion fuel,
(C)natural
gas,
(D)methane,
(E)nitrous
oxide,
(F)sulfur
hexafluoride,
(G)a
perfluorocarbon,
(H)a hydrofluorocarbon, and
(I)any other substance that is determined by
the Administrator to contribute to global warming to a nonnegligible
degree.
(4)The term Federal emission permit means a
permit required under section 9901.
(5)The term carbon-intensive good means—
(A)(i)iron, steel, any steel
mill product (including pipe and tube), aluminum, cement, glass (including
flat, container, and specialty glass and fiberglass), pulp, paper, chemicals,
and industrial ceramics, and
(ii)any other manufactured product
that the Secretary determines—
(I)is sold for purposes of further
manufacture, and
(II)generates, in the course of the
manufacture of the product, direct and indirect greenhouse gas emissions that
are comparable (on an emissions per dollar of output basis) to emissions
generated in the manufacture or production of a good identified in clause (i),
and
(B)a manufactured
item in which one or more goods identified under subparagraph (A) are inputs
and the cost of production of which in the United States the Secretary
determines is significantly increased by this subtitle.
(6)The term petroleum product has the meaning
given such term in section 4612(a)(3).
(b)Identification
of carbon-intensive goodsThe determinations by the Secretary
required by subsection (a)(5) shall be by rule.
9904.The Secretary shall issue such regulations
as may be necessary or appropriate to carry out this subtitle, including
regulations relating to the timely and efficient issuance of permits and
collection of payments for such
permits.
.
(b)Refund of
Federal emission permit feeSubchapter B of chapter 65 of such Code is
amended by adding at the end the following new section:
6633.Refunds of
Federal emission permit fee for certain uses
(a)If a Federal emission
permit has been acquired with respect to a greenhouse gas emission substance
pursuant to section 9902 and the acquirer of such permit uses such substance in
a manner that will make a negligible or no contribution to global warming, as
determined by the Secretary in consultation with the Administrator of the
Environmental Protection Agency, the Secretary shall pay (without interest) to
the acquirer of such substance pursuant to such permit an amount equal to the
amount paid for the applicable Federal emission permit.
(b)The Secretary shall pay (without interest) to the
exporter of a carbon-intensive good (as defined in section 9903(5)) produced in
the United States an amount equal to the cost that domestic producers of such
carbon-intensive goods incur as a result of—
(1)the dollar amount
paid by covered persons for Federal emission permits for greenhouse gas
emission substances under this section 9902, and
(2)greenhouse gas
emission permit equivalency fees paid under section 9901(e) by importers of
carbon-intensive goods used in the production of the comparable
carbon-intensive goods in
question.
.
(c)Subtitle D of the Internal Revenue Code of 1986 is
amended by adding at the end the following new chapter:
48Greenhouse Gas
Emission Substances
Sec. 5000A. Greenhouse gas emission substances.
5000A.Greenhouse
gas emission substances
(a)There is hereby imposed
on any covered person who fails to obtain a Federal emission permit pursuant to
subtitle L a tax equal to 300 percent of the dollar amount of the fee that
would have been charged for such permit but for such failure.
(b)The term covered
person has the meaning given such term by section 9901(b).
(c)The term Federal
emission permit means a permit required under section
9901.
.
(d)Establishment of
Climate Protection and Economic Security Trust Fund
(1)The Congress finds that revenue generated
from the sale of Federal emission permits must be recycled into the American
economy—
(A)to facilitate
economic growth and clean energy production, and
(B)to protect the
economic security of vulnerable families and communities.
(2)Establishment of
trust fundSubchapter A of chapter 98 of such Code (relating to
trust fund code) is amended by adding at the end the following:
9511.Climate
Protection and Economic Security Trust Fund
(a)There is established in the Treasury of the United
States a trust fund to be known as the Climate Protection and Economic
Security Trust Fund
(referred to in this section as the Trust
Fund
), consisting of such amounts as may be appropriated or credited to
the Trust Fund as provided in this section or section 9602(b).
(b)There is hereby appropriated to the Trust Fund an
amount equivalent to the amounts received in the Treasury pursuant to subtitle
L.
.
(e)Conforming and
clerical amendments
(1)The table of chapters for subtitle D of
such Code is amended by adding at the end the following new item:
Chapter 48—Greenhouse Gas Emission
Substances.
.
(2)The table of
subtitles for the Internal Revenue Code of 1986 is amended by adding at the end
the following new item:
Subtitle L—Greenhouse Gas Emission
Substances.
.
(3)The table of
sections for subchapter A of chapter 98 of such Code is amended by adding at
the end the following:
Sec. 9511. Climate Protection and Economic Security Trust
Fund.
.
(f)The amendments made by this section shall apply with respect
to the sale of any greenhouse gas emission substance after December 31,
2010.