Covered fuels include crude oil, natural gas, coal, or any product of those fuels that emits greenhouse gases to the atmosphere

Noncovered fuel emissions include carbon dioxide or methane emitted as a result of the production, processing, transport, or use of any product or material within the energy or industrial sectors

Carbon-intensive products include iron, steel, steel mill products (including pipe and tube), aluminum, cement, glass (including flat, container, and specialty glass and fiberglass), pulp, paper, chemicals, or industrial ceramics. The Secretaries of Commerce and Energy may also identify other manufactured products as energy-intensive and trade-exposed (except covered fuels).

Any country with which the U.S. has a treaty that a carbon border fee would conflict with may have its fee adjusted in accordance with the treaty.

Imports of carbon-intensive products and covered fuels will be subject to a fee equivalent to that domestic producers pay, minus any fee the exporter may have paid on carbon to its home government.

Foreign policies that do not impose carbon fees but have a similar effect in reducing greenhouse gas emissions may be treated as fees. The Treasury Secretary, in consultation with the Commerce and Energy Secretaries, will develop regulations to guide these determinations.

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$65/ton, increasing by $10 every year thereafter, adjusted for inflation.

Entities producing covered fuel emissions and noncovered fuel emissions will pay a carbon fee equal to the greenhouse gas emissions multiplied by the domestic carbon price (referred to in the bill as the carbon fee rate).

However, if cumulative emissions targets are missed, the carbon fee rate will increase by $15 each year from 2029-2033, $20 each year from 2034-2043, and $25 each year thereafter.

If certain emissions criteria are met, the carbon fee rate will increase by $0 each year.

Establishes a process to provide refunds for carbon capture, sequestration, and utilization.

Exporters of carbon-intensive goods will receive a refund for any carbon fees paid related to the manufacturing of the product.

Exporters of covered fuels will receive a refund for any carbon fees paid related to the to the use, sale, or transfer of the fuel.

Carbon fees on covered fuels will be imposed beginning January 1, 2026.

Carbon fees on noncovered fuel emissions will be imposed beginning January 1, 2028.

Carbon border adjustment fees will be imposed on January 1, 2026.

Covered fuels include crude oil, natural gas, coal, or any product of those fuels that emits greenhouse gases to the atmosphere

Noncovered fuel emissions include carbon dioxide or methane emitted as a result of the production, processing, transport, or use of any product or material within the energy or industrial sectors

Carbon-intensive products include iron, steel, steel mill products (including pipe and tube), aluminum, cement, glass (including flat, container, and specialty glass and fiberglass), pulp, paper, chemicals, or industrial ceramics. The Secretaries of Commerce and Energy may also identify other manufactured products as energy-intensive and trade-exposed (except covered fuels).

This topic is not addressed in the legislation.

This topic is not addressed in the legislation.

Sets up an "America's Clean Future Fund" that appropriates the revenue collected from the carbon fees and carbon border adjustment fees to different funds and activities.

This topic is not addressed in the legislation.

Iron and steel

‍The President may also direct the inclusion of any other iron and steel article not included in the original scope.

Covered products from least developed countries as described in the Foreign Assistance Act of 1961 unless they supply 3% or more of global exports of a covered product.

Covered products for which like or similar products are not produced domestically.

‍The President has the authority to issue a "carbon clubs waiver" to exempt tariffs on covered products from countries that have similar policies to impose costs on the emissions produced from iron and steel production. The waiver may also be issued for countries whose emissions intensity of covered products does not exceed 150% of that of the U.S.

The U.S. International Trade Commission should include in its report on foreign countries' emission intensity a recommended tariff rate for each country that has a greater emissions intensity than the U.S. The President has the discretion to impose the recommended tariff rates or different tariff rates as determined.

The tariff rates on finished goods will be the sum of the rates of all covered iron and steel products that are components of the finished good. The tariff rates on covered products from nonmarket economies shall be doubled from the rate as calculated during the steps above.

The tariff on products melted and poured in a third country shall be calculated based on the emissions intensity of the third country rather than the country from which the product is imported unless the President has approved a petition with respect to importation of that product.

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This topic is not addressed in the legislation.

This topic is not addressed in the legislation.

This topic is not addressed in the legislation.

Import tariffs on covered iron and steel products shall be imposed within 90 days of the publication of the U.S. International Trade Commission report.

Import tariffs on finished goods with covered iron and steel inputs shall be imposed beginning January 1, 2027.

Iron and steel

‍The President may also direct the inclusion of any other iron and steel article not included in the original scope.

This topic is not addressed in the legislation.

Importers of covered iron and steel products for which emissions intensities are based on the general economy or overall industry production may petition the President to calculate an import tariff based on the emissions intensity of the manufacture of a specific covered product by a specific manufacturer.

75% of tariff revenue to be allocated to the Energy Department.

25% of tariff revenue to be allocated to an economic support fund for decarbonization programs and other climate and clean energy programs in foreign countries.

This topic is not addressed in the legislation.    

Fossil fuels, refined petroleum products, petrochemicals, fertilizer, hydrogen, adipic acid, cement, iron and steel, aluminum, glass, pulp and paper, and ethanol, organized by North American Industry Classification System code.

Will expand to apply to imported finished goods that contain certain weights or value thresholds of covered primary goods beginning in 2027.

Least developed countries as defined in the Foreign Assistance Act of 1961 unless they supply 3% or more of global exports of a covered good.

‍Carbon club provision that allows the Secretary to waive a charge for a company if they pay a similar carbon charge/tax/price in their country of origin.

Covered primary goods are charged based on the amount the carbon intensity in the country of origin exceeds the U.S. baseline for a covered national industry.

For countries without reliable data, the levy is based on the ratio of the country of origin’s economy-wide carbon intensity to the U.S. economy-wide carbon intensity. For countries with reliable data, the levy is based on the amount the specific industry’s carbon intensity in the country of origin exceeds the carbon intensity of the U.S. industry, taking into account the weight of the imported good and the carbon price.

‍Finished goods are charged based on the sum of the calculations of component parts.

The baselines start at 100%of carbon intensity in 2025 and would decline by 2.5% per year from 2026 to 2029 and 5% thereafter.

Charges shall be paid by September 30 of the subsequent year.

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$55/ton in 2025, increasing by 5% above inflation each year.

Domestic producers would pay a price on the facility-specific carbon intensity that exceeds the baseline carbon intensity established by the industry average; or if determined based on covered good, the baseline carbon intensity of that good multiplied by weight of good produced and the carbon price.

The baselines start at 100% of carbon intensity in 2025 and would decline by 2.5% per year from 2026 to 2029 and 5% thereafter.

Charges shall be paid by September 30 of the subsequent year.

Domestic producers of covered goods will receive export rebates.

The charge on domestic production and imports of covered primary goods takes effect on January 1, 2025.

In 2027, coverage expands to include imported finished goods containing at least 500 pounds of covered primary goods, 90% of which is covered primary goods. In 2029, the coverage threshold for finished goods lowered to 100 pounds of covered primary goods, 75% of which is covered primary goods. In 2030, the finished goods thresholds are determined by the Secretary annually but cannot exceed the 100 pounds and 75% thresholds.

‍Reporting requirements take effect, and annually thereafter, beginning June 30, 2026.

Fossil fuels, refined petroleum products, petrochemicals, fertilizer, hydrogen, adipic acid, cement, iron and steel, aluminum, glass, pulp and paper, and ethanol, organized by North American Industry Classification System code.

Will expand to apply to imported finished goods that contain certain weights or value thresholds of covered primary goods beginning in 2027.

Requirements under Greenhouse Gas Reporting Program to the Environmental Protection Agency and Treasury department.

Facilities must also provide: The total amount of electricity used at the facility in the last calendar year and the total weight, in tons, of covered primary goods produced at the facility in the last calendar year.

Entities may petition to determine the carbon intensity of a specific covered primary good for a covered national industry. Covered goods are eligible if production processes are substantially different than other goods in industry, the good cannot be easily replaced by other covered goods in the same industry, and carbon intensity is at least 25% higher than other covered goods in same industry.

‍Entities may petition to determine the border charge be based on a specific facility’s carbon intensity if the country of origin has transparent and reliable data.

75% of revenue will be allocated to fund investment in decarbonization in the affected industries.

25% of revenue will be allocated to fund investment in decarbonization in least developed countries.

Carbon club provision that allows the Secretary to waive a charge for a company if they pay a similar carbon charge/tax/price in their country of origin.

The scope solely applies to a study of emissions intensity. This bill does not institute any fees on carbon. ‍

‍Aluminum, biofuels, cement, crude oil, fertilizer, iron and steel, glass, hydrogen, lithium-ion batteries, natural gas, paper/pulp, petrochemicals, plastics, refined critical minerals, refined petroleum products, solar cells/panels, uranium, and wind turbines, organized by Harmonized Tariff Schedule code. The Energy Secretary may identify additional covered products for inclusion.

The study only applies to products from covered countries, including G7 members, free trade agreement partners, foreign countries of concern as designated in the FY21 National Defense Authorization Act, countries with asubstantial global market share of covered products or upstream inputs, and other countries determined by the Energy Secretary as being a major producer or exporter of a covered product.

The Energy Secretary may limit the inclusion of covered products for foreign countries of concern or countries with a substantial global market share of a product to just the product(s) for which that country holds a substantial global market share.

Stops short of actually imposing any form of a carbon border fee.

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States that nothing in this measure gives the Federal government authority to impose a carbon tax, duty, fee, etc.

This topic is not addressed in the legislation.

This topic is not addressed in the legislation.

The emissions study must be prepared no later than 2 years after enactment, then every five years. The public online database and the list of covered products shall be updated at least once every five years.

The scope solely applies to a study of emissions intensity. This bill does not institute any fees on carbon. ‍

‍Aluminum, biofuels, cement, crude oil, fertilizer, iron and steel, glass, hydrogen, lithium-ion batteries, natural gas, paper/pulp, petrochemicals, plastics, refined critical minerals, refined petroleum products, solar cells/panels, uranium, and wind turbines, organized by Harmonized Tariff Schedule code. The Energy Secretary may identify additional covered products for inclusion.

The study only applies to products from covered countries, including G7 members, free trade agreement partners, foreign countries of concern as designated in the FY21 National Defense Authorization Act, countries with asubstantial global market share of covered products or upstream inputs, and other countries determined by the Energy Secretary as being a major producer or exporter of a covered product.

This topic is not addressed in the legislation.

Throughout the study, the Energy Secretary may consult and coordinate with institutions that have relevant data, data collection, or analytical abilities, including National Labs, National Institute of Standards & Technology, International Energy Agency, National Academy of Sciences, Organisation for Economic Co-operation and Development, and academic partners and think tanks.

The Energy and Commerce Secretaries shall establish a process to receive data from industry partners and a process for industry to request a product be included in the study.

This topic is not addressed in the legislation.

The Energy Department, State Department, and Office of the U.S. Trade Representative shall make every effort to coordinate with covered countriesforinformation sharing and data purposes.

If a covered country credibly supports the study’s data efforts, they may be consulted on average product emissions intensity and given the opportunity to discuss the chosen data and to fill data gaps.

The scope solely applies to a study of emissions intensity. This bill does not institute any fees on carbon.

Aluminum, biofuels, cement, crude oil, fertilizer, iron and steel, glass, hydrogen, lithium-ion batteries, natural gas, paper/pulp, petrochemicals, plastics, refined critical minerals, refined petroleum products, solar cells/panels, uranium, and wind turbines, organized by Harmonized Tariff Schedule code.

The Energy Secretary may identify additional covered products for inclusion.

The study only applies to products from covered countries, including G7 members, free trade agreement partners, foreign countries of concern as designated in the FY21 National Defense Authorization Act, countries with a substantial global market share of covered products or upstream inputs, and other countries determined by the Energy Secretary as being a major producer or exporter of a covered product.

The Energy Secretary may limit the inclusion of covered products for foreign countries of concern or countries with a substantial global market share of a product to just the product(s) for which that country holds a substantial global market share.

Stops short of actually imposing any form of a carbon border fee.

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States that nothing in this measure gives the Federal government authority to impose a carbon tax, duty, fee, etc.

This topic is not addressed in the legislation.

This topic is not addressed in the legislation.

The emissions study must be prepared no later than 2 years after enactment, then every five years.

The study on forced labor must be prepared not later than March 1 of each year.

The scope solely applies to a study of emissions intensity. This bill does not institute any fees on carbon.

Aluminum, biofuels, cement, crude oil, fertilizer, iron and steel, glass, hydrogen, lithium-ion batteries, natural gas, paper/pulp, petrochemicals, plastics, refined critical minerals, refined petroleum products, solar cells/panels, uranium, and wind turbines, organized by Harmonized Tariff Schedule code.

The Energy Secretary may identify additional covered products for inclusion.

The study only applies to products from covered countries, including G7 members, free trade agreement partners, foreign countries of concern as designated in the FY21 National Defense Authorization Act, countries with a substantial global market share of covered products or upstream inputs, and other countries determined by the Energy Secretary as being a major producer or exporter of a covered product.

This topic is not addressed in the legislation.

Throughout the study, the Energy Secretary may consult and coordinate with institutions that have relevant data, data collection, or analytical abilities, including National Labs, National Institute of Standards & Technology, International Energy Agency, National Academy of Sciences, Organisation for Economic Co-operation and Development, and  academic partners and think tanks.

The Energy and Commerce Secretaries shall establish a process to receive data from industry partners.

This topic is not addressed in the legislation.

The Energy Department, State Department, and Office of the U.S. Trade Representative shall make every effort to coordinate with covered countries for information sharing and data purposes. If a covered country credibly supports the study’s data efforts, they may be consulted on average product emissions intensity and given the opportunity to discuss the chosen data and to fill data gaps.

Aluminum, biofuels, cement, crude oil, glass, hydrogen/ammonia/methanol, iron & steel, lithium-ion batteries, minerals, natural gas, refined petroleum, petrochemicals, plastics, paper/pulp, solar cells & panels, and wind turbines, organized by Harmonized Tariff Schedule code.

The Treasury Secretary, with the U.S. Trade Representative, may designate additional critical minerals not included in the original scope as covered products if included on the critical minerals list by the U.S. Geological Survey.

Covered products within 10% of the baseline pollution intensity.

‍Covered products with no sufficient domestic production.‍

‍National security needs tied to sourcing a product from a specific country for a Defense Department contract.

Covered products from free trade agreement partners within 50% of baseline pollution intensity.

Special treatment granted for countries with international partnership agreements (Sec. 4694 & Title II), described in more detail below.

‍Exceptions do not apply to nonmarket economies unless a low or lower-middle income economy with an international partnership agreement.

The carbon fee is the product of the amount of good imported and the variable charge. The fee shall be paid at the same time as payment on other customs duties.

The variable charge is determined by the percentage value of an imported product that adjusts based on pollution differences for a product in foreign economy vs. the U.S. Tiers are established for covered products based on the pollution intensity difference from the country of origin. Variable charge will be calculated to ensure that imports average no more pollution intense than the U.S. by 50% in first six years, 25% in second six years, and 10% thereafter.

Adjustments to the duty rate are allowed in case of circumvention or to meet pollution intensity goals.

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Specifically states that no provision in this measure creates a carbon tax, fee, price, etc. for products produced domestically.

This topic is not addressed in the legislation.

This topic is not addressed in the legislation.

The feeis imposed 36 months after the date of enactment. Low or lower-middle income countries may receive a postponement of 12 months or less if working towards an international partnership agreement.

The rulemaking for covered products is due 12 months after enactment.

The pollution intensity calculations are due 18 months after enactment.

The variable charge calculations and additional rulemakings are due 24 months after enactment.

Circumvention rules are due 36 months after enactment.

Reassessments of pollution intensity values, rates, and covered products must occur every 3 years.

Application of the fee for additional covered products, either by domestic petition or if included as a critical mineral, will be imposed on January 1 of the year after the final rule is issued.

Aluminum, biofuels, cement, crude oil, glass, hydrogen/ammonia/methanol, iron & steel, lithium-ion batteries, minerals, natural gas, refined petroleum, petrochemicals, plastics, paper/pulp, solar cells & panels, and wind turbines, organized by Harmonized Tariff Schedule code.

The Treasury Secretary, with the U.S. Trade Representative, may designate additional critical minerals not included in the original scope as covered products if included on the critical minerals list by the U.S. Geological Survey.

This topic is not addressed in the legislation.

Eligible entities may petition to include additional covered products if 50% or more of the domestic manufacturing of such product is represented in the petition.

This topic is not addressed in the legislation.

‍Reduces fee to zero for products within 50% of U.S. pollution intensity for countries in a partnership agreement that meet requirements related to pollution reduction, trade, and information sharing. Special considerations given to low and lower-middle income economies.

Treatment of low and lower-middle income countries can be extended to upper-middle income countries under specific national security conditions (see 4692 (d)(3)).

Partnership agreements may cover one or multiple products and include one or multiple countries.

Outlines congressional consultation, review, and approval processes.

Restricts certain negotiations related to nonmarket economies and domestic policy decisions.

Allows for facility-specific international partnership agreements.

Covered goods include covered fuels, products produced in the aluminum, cement, iron, and steel, industries, any product made up of at least 50% of material from these sectors, and other products as determined by the Treasury Secretary and relevant interagency partners.

Covered fuels include natural gas, petroleum, coal, and derivative products.

‍The list of goods covered by the tariff will expand as the United States improves processes for determining the carbon intensity of different types of goods.

‍Least developed countries as identified by the Organisation for Economic Co-operation and Development.

Countries that do not impose a carbon border adjustment measure on U.S. exports and have ambitious greenhouse gas reduction laws.

The fee for a covered fuel is the production’s domestic environmental cost multiplied by upstream greenhouse gas emissions of the fuel.

The fee for other covered goods is the sector’s domestic environmental cost multiplied by the production greenhouse gas emissions.

If no reliable data is available, the fee is the benchmark emissions for the sector multiplied by the sector’s domestic environmental cost.

This topic is not addressed in the legislation.

This topic is not addressed in the legislation.

This topic is not addressed in the legislation.

U.S. government determinations and calculations are due July 1, 2023 and the imposition of the carbon border fee on imports will begin January 1, 2024.

Covered goods include covered fuels, products produced in the aluminum, cement, iron, and steel, industries, any product made up of at least 50% of material from these sectors, and other products as determined by the Treasury Secretary and relevant interagency partners.

Covered fuels include natural gas, petroleum, coal, and derivative products.

‍The list of goods covered by the tariff will expand as the United States improves processes for determining the carbon intensity of different types of goods.

This topic is not addressed in the legislation.

Importers of covered goods may petition to revise determination of greenhouse gas emissions for a specific good.

Supplement U.S. Customs & Border Protection appropriations necessary to administer the carbon border fee.50% of remaining revenue toward state grant program (outlined in Sec 3 of bill)50% of remaining revenue, through appropriations, toward research and development, export, etc. of technologies that reduce/eliminate greenhouse gas emissions.

State Department and Office of the U.S. Trade Representative shall engage with countries to reduce greenhouse gas emissions through trade and ensure fairness in emissions-based tariffs.