To advance bipartisan, common sense solutions.
Legislative Progress
In CommitteeMr. Suozzi introduced the following bill; which was referred to …
Summary
What This Bill Does
The MARKET CHOICE Act establishes a comprehensive carbon tax on greenhouse gas emissions, starting at $35 per ton of CO2 in 2027 and increasing annually. The tax applies to fossil fuels (coal, oil, natural gas) at the point of production or import, as well as emissions from heavy industry (steel, cement, chemicals) and certain products (ethanol, biodiesel). In exchange for this market-based carbon pricing, the bill preempts most EPA regulatory authority over greenhouse gas emissions until 2039.
Who Benefits and How
- Highway and transportation infrastructure receives 70% of carbon tax revenues (via the Highway Trust Fund), providing a massive boost to road, bridge, and transit construction
- Low-income households receive direct assistance through state-administered grants (10% of revenues), protecting those least able to absorb higher energy costs
- Carbon capture companies receive tax refunds for sequestering emissions, creating new revenue opportunities
- Domestic manufacturers in trade-exposed sectors (steel, cement, aluminum) are protected by border carbon adjustments that tax competing imports and rebate the carbon cost on exports
- Clean energy R&D benefits from dedicated funding for ARPA-E, carbon capture research, and energy storage
- Displaced fossil fuel workers receive transition assistance (3% of revenues)
Who Bears the Burden and How
- Fossil fuel producers (coal mines, oil refineries, natural gas processors) face direct carbon tax liability, starting at $35/ton and escalating each year
- Heavy industrial emitters (iron/steel, cement, petrochemicals, aluminum, semiconductors) must pay carbon taxes on process emissions exceeding 25,000 tons annually
- Consumers will likely face higher energy and product prices as carbon costs are passed through the supply chain
- States with carbon pricing programs (California, RGGI states) lose their credit for state carbon payments, phased out over 5 years
- EPA loses authority to regulate most stationary source GHG emissions, limiting its climate regulatory tools
Key Provisions
- Carbon tax starts at $35/ton in 2027, increases by 5% plus inflation annually, with an additional $4/ton penalty if national emissions exceed targets
- Creates RISE Trust Fund distributing 75% of revenues: 70% to highways, 10% to low-income assistance, remainder to climate adaptation, energy R&D, and worker transition
- Border carbon adjustments protect trade-exposed domestic industries from foreign competition
- Repeals federal gasoline, diesel, and aviation fuel excise taxes
- Preempts EPA greenhouse gas regulations for taxed sources until 2039 (with early termination if emissions targets missed)
- Preserves EPA authority over vehicle emissions, methane leaks, and renewable fuel standards
- Provides tax refunds for carbon capture and sequestration, including for enhanced oil recovery
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Establishes a comprehensive carbon tax on greenhouse gas emissions from fossil fuels, industrial processes, and certain products, using the revenue to fund infrastructure, climate adaptation, and low-income household assistance while preempting most EPA greenhouse gas regulations.
Policy Domains
Legislative Strategy
"Comprehensive carbon pricing approach that replaces most EPA regulatory authority over GHG emissions with a market-based tax, while protecting domestic industry through border adjustments and directing revenue to infrastructure and low-income households"
Likely Beneficiaries
- Highway and transportation infrastructure (70% of revenue)
- Low-income households (10% of revenue through state grants)
- Carbon capture and sequestration companies (tax refunds)
- Domestic manufacturers in trade-exposed sectors (border tax adjustments and export rebates)
- Clean energy and efficiency industries (weatherization, ARPA-E funding)
- Displaced fossil fuel workers (3% for transition assistance)
Likely Burden Bearers
- Fossil fuel producers and importers (direct tax liability)
- Heavy industrial emitters (iron/steel, cement, chemicals, refineries)
- Consumers of fossil fuels (indirect cost pass-through)
- EPA (loss of regulatory authority over GHG emissions)
- States with carbon pricing programs (phased-out credit for state payments)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "the_commissioner"
- → Commissioner of U.S. Customs and Border Protection
- "the_administrator"
- → Administrator of the Environmental Protection Agency
- "the_secretary"
- → Secretary of the Treasury
- "the_secretary_of_energy"
- → Secretary of Energy
- "the_administrator"
- → Administrator of the Environmental Protection Agency
- "the_president"
- → President of the United States
- "the_secretary"
- → Secretary of the Treasury
- "the_director"
- → Director of CISA
- "the_secretary"
- → Secretary of Homeland Security
Note: 'The Secretary' refers to Secretary of the Treasury in Title I (carbon tax) and Title II (trust fund), but Secretary of Homeland Security in Title VII (school security)
Key Definitions
Terms defined in this bill
The permanent storage of carbon dioxide or other greenhouse gas such that it does not escape into the atmosphere, in compliance with regulations issued pursuant to section 45Q(f)(2)
Coal, petroleum products, or natural gas
The Administrator of the Environmental Protection Agency
Carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride
Any substantial increase in greenhouse gas emissions by entities located in other countries caused by a cost of production increase in the United States resulting from implementation of this title
For coal: mine mouth or exit from coal preparation plant; For petroleum products: exit point from refinery; For natural gas: exit from gas processing plant; For imports: point of entry into US
The levying of a tax on imported covered goods equivalent to the amount of tax paid on comparable domestic goods, and the rebating of tax on exported goods
The number of metric tons of CO2 emissions with the same global warming potential over a 100-year period as one metric ton of another greenhouse gas
An industrial sector with greenhouse gas intensity of at least 5% and trade intensity of at least 15%
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology