[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3866 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 3866

To require the imposition of additional duties with respect to imports 
of green energy goods that originate in the People's Republic of China, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 5, 2024

  Mr. Hawley introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To require the imposition of additional duties with respect to imports 
of green energy goods that originate in the People's Republic of China, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Declaring Our Energy Independence 
from China Act of 2024''.

SEC. 2. FINDINGS; STATEMENT OF POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) The People's Republic of China is the leading 
        manufacturer of green energy goods and dominates the downstream 
        supply chain, exerting more control over the global production 
        of green energy than the Organization of the Petroleum 
        Exporting Countries exerts over global oil production.
            (2) The Federal Government and State governments in the 
        United States have imposed mandates and implemented policies to 
        reduce carbon emissions and pursue objectives intended to 
        mitigate climate change.
            (3) Mandates and policies intended to mitigate climate 
        change undermine the energy independence of the United States 
        and make the United States dependent on the People's Republic 
        of China for its energy needs.
    (b) Statement of Policy.--It is the policy of the United States to 
establish energy independence from the People's Republic of China.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Green energy component.--The term ``green energy 
        component'' means a qualifying battery component, solar energy 
        component, or wind energy component.
            (2) Green energy good.--The term ``green energy good'' 
        means a battery cell, battery module, photovoltaic cell, solar 
        module, or wind energy component.
            (3) Other terms.--The terms ``battery cell'', ``battery 
        module'', ``qualifying battery component'', ``photovoltaic 
        cell'', ``solar energy component'', ``solar module'', and 
        ``wind energy component'' have the meanings given those terms 
        in section 45X(c) of the Internal Revenue Code of 1986.

SEC. 4. LIST OF GREEN ENERGY COMPONENTS PRODUCED IN THE UNITED STATES 
              AND IMPORTED FROM THE PEOPLE'S REPUBLIC OF CHINA AND 
              OTHER COUNTRIES.

    Not later than 180 days after the date of the enactment of this 
Act, and annually thereafter, the United States International Trade 
Commission shall publish on a publicly accessible internet website of 
the Office of Industry and Competitive Analysis of the Commission a 
list of green energy components that includes the following:
            (1) The heading or subheading of the Harmonized Tariff 
        Schedule of the United States under which each such component 
        is classifiable.
            (2) The total volume and value of each such component 
        produced in the United States.
            (3) The total volume and value of each such component 
        imported into the United States from the People's Republic of 
        China.
            (4) The total volume and value of each such component 
        imported into the United States from any other country.

SEC. 5. IMPOSITION OF DUTIES WITH RESPECT TO GREEN ENERGY GOODS THAT 
              ORIGINATE IN THE PEOPLE'S REPUBLIC OF CHINA.

    (a) In General.--The President shall impose a duty, at a rate 
calculated under subsection (b), with respect to each green energy good 
that is imported into the United States and originates in the People's 
Republic of China.
    (b) Calculation of Rate.--
            (1) Rate.--The rate of the duty imposed under subsection 
        (a) is--
                    (A) during the 12-month period beginning on the 
                date that is 180 days after the date of the enactment 
                of this Act, 25 percent ad valorem; and
                    (B) during the 12-month period that begins on the 
                day after the end of the 12-month period described in 
                subparagraph (A), and each 12-month period thereafter 
                until the date that is 5 years after such date of 
                enactment--
                            (i) the rate in effect for the preceding 
                        12-month period; plus
                            (ii) 5 percent ad valorem.
            (2) Valuation.--For purposes of determining the amount of 
        duty applicable under paragraph (1) with respect to a green 
        energy good, the value of the goods shall be the price at which 
        the same or a similar imported good is freely offered for sale, 
        packed ready for delivery, in the principal market of the 
        United States to all purchasers, at the time of exportation of 
        the good, in the usual wholesale quantities and in the ordinary 
        course of trade, with allowance made for duty, cost of 
        transportation and insurance, and other necessary expenses from 
        the place of shipment to the place of delivery.
    (c) Rule of Origin.--
            (1) In general.--For purposes of this section, a green 
        energy good originates in the People's Republic of China if the 
        good is produced--
                    (A) in the People's Republic of China;
                    (B) by an entity organized under the laws of, 
                headquartered in, or with its principal place of 
                business in the People's Republic of China, without 
                regard to the country in which that entity is located; 
                or
                    (C) by an entity with respect to which control is 
                exercised by an entity described in subparagraph (B).
            (2) Control defined.--For purposes of paragraph (1)(C), the 
        term ``control'' has the meaning given that term in section 
        800.208 of title 31, Code of Federal Regulations (as in effect 
        on the day before the date of the enactment of this Act).
    (d) Additional Duties.--A duty imposed under subsection (a) with 
respect to a green energy good shall be in addition to any other duties 
applicable to that component.
    (e) Prohibition on Use of Emergency Authority.--The President may 
not exercise the authority provided under section 318(a) of the Tariff 
Act of 1930 (19 U.S.C. 1318(a)) to provide for the importation free of 
duty of any green energy good that originates in the People's Republic 
of China.

SEC. 6. REPORT ON INDUSTRIAL SUBSIDIES PROVIDED BY THE PEOPLE'S 
              REPUBLIC OF CHINA.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the United States Trade Representative shall 
submit to Congress a report assessing the extent to which the 
Government of the People's Republic of China has, during the 15-year 
period preceding such date of enactment, provided industrial subsidies 
to the battery, solar energy, and wind energy sectors of the People's 
Republic of China.
    (b) Industrial Subsidy Defined.--In this section, the term 
``industrial subsidy'' includes, at a minimum, the following actions by 
a government for the benefit of an industry:
            (1) The direct transfer of funds, as with a grant, loan, or 
        equity infusion.
            (2) The potential direct transfer of funds, as with a loan 
        guarantee.
            (3) Foregoing or not collecting revenue that is otherwise 
        due, as with tax credits or deductions from taxable income.
            (4) Providing preferential access to capital, land, or 
        electricity.
            (5) Providing goods or services other than general 
        infrastructure.
            (6) Purchasing goods.
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