To amend the Internal Revenue Code of 1986 to establish a carbon fee to reduce greenhouse gas emissions, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The America's Clean Future Fund Act creates a carbon fee starting at $75 per metric ton of CO2 in 2027, applied to fossil fuels (oil, coal, natural gas) and industrial greenhouse gas emissions. The fees increase annually until emission reduction targets are met. The collected revenue funds direct payments to American adults, clean energy investments, agricultural transition support, and assistance for workers in fossil fuel industries.
Who Benefits and How
American adults receive quarterly cash rebate payments from the Clean Future Fund Stimulus program, providing direct financial benefits from carbon fee revenues. Clean energy technology companies and climate-resilient infrastructure developers gain access to financing through a new Climate Change Finance Corporation. Agricultural producers can receive payments for adopting practices that reduce greenhouse gas emissions. Workers in fossil fuel communities receive job training and transition assistance.
Who Bears the Burden and How
Fossil fuel producers (oil refiners, coal producers, natural gas extractors) and importers must pay carbon fees based on the greenhouse gas content of their fuels, starting at $75/ton CO2. Heavy industrial emitters (steel, cement, aluminum, chemicals, glass) face fees on non-fuel emissions. Importers of carbon-intensive products must pay border adjustment fees to match domestic carbon costs. These costs are expected to be passed through to consumers of fossil fuels and carbon-intensive goods.
Key Provisions
- Carbon fee of $75/ton CO2 starting 2027, increasing annually until 45% emission reduction by 2030 and 100% by 2050
- America's Clean Future Fund Trust pays quarterly rebates to all U.S. adults
- Climate Change Finance Corporation finances clean energy deployment and climate resilience projects
- Border carbon adjustments protect U.S. manufacturers from unfair competition and prevent carbon leakage
- $100 billion over 14 years set aside for transition assistance programs
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Establishes a comprehensive carbon fee system on fossil fuels and greenhouse gas emissions, with revenues directed to citizen rebates, clean energy investments, agricultural transition assistance, and workforce support for communities affected by the transition away from fossil fuels.
Key Policy Areas
Energy, Environment, Climate, Tax Policy, Agriculture, Workforce Development, Trade
Primary Purpose
Establishes a comprehensive carbon fee system on fossil fuels and greenhouse gas emissions, with revenues directed to citizen rebates, clean energy investments, agricultural transition assistance, and workforce support for communities affected by the transition away from fossil fuels.
Policy Domains
Carbon Fee Provisions
Identified Gains
- Clean energy technology providers
- Carbon capture companies
- US manufacturers (protected by border adjustments)
- Exporters of carbon-intensive products (receive refunds)
Identified Costs
- Fossil fuel producers (oil refiners, coal producers, natural gas extractors)
- Fossil fuel importers
- Heavy industrial emitters (steel, cement, aluminum, chemicals)
- Importers of carbon-intensive products
Transition Assistance
Identified Gains
- Fossil fuel industry workers
- Communities economically dependent on fossil fuel industries
- Individuals with barriers to employment
America's Clean Future Fund Trust
Identified Gains
- American adults (receive rebate payments)
- Low and middle income households (rebates may exceed carbon cost increases)
Identified Costs
Contextual inference, no direct clause citation- High-carbon consumption households (rebates may not cover cost increases)
Contextual inference, no direct clause citation
Agricultural Decarbonization
Identified Gains
- Agricultural producers adopting climate-smart practices
- Traditionally underserved farmers
Climate Change Finance Corporation
Identified Gains
- Clean energy technology developers
- Climate-resilient infrastructure developers
- Environmental justice communities
- Clean transportation sector
Legislative Progress
IntroducedMr. Durbin introduced the following bill; which was read twice …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Cement and concrete manufacturers, Chemical manufacturing plants, Foreign manufacturers exporting carbon-intensive products to U.S.
Positive-direction: Industrial decarbonization technology companies, Industrial facilities with carbon capture equipment, U.S. cement manufacturers, U.S. exporters of carbon-intensive products (steel, aluminum, cement), U.S. steel and aluminum manufacturers
Negative-direction: Cement and concrete manufacturers, Chemical manufacturing plants, Foreign manufacturers exporting carbon-intensive products to U.S., Heavy industrial emitters (steel, cement, aluminum, chemicals), Heavy industrial emitters over 25,000 metric tons CO2/year, Industrial facilities with process emissions over 25,000 tons CO2/year, Steel and aluminum producers
Enhanced oil recovery operators using captured CO2, Natural gas extraction companies, Natural gas producers and extractors
Positive-direction: Enhanced oil recovery operators using captured CO2, Workers in fossil fuel-dependent communities
Negative-direction: Natural gas extraction companies, Natural gas producers and extractors, Natural gas producers from U.S. wells, Oil refineries operating in the United States, Petroleum refineries in the United States
Agricultural producers adopting climate-smart practices, Agricultural producers eligible for transition payments, Agricultural producers participating in decarbonization programs
Climate Change Finance Corporation, Council on Environmental Quality, Environmental Protection Agency
Positive-direction: Climate Change Finance Corporation
Negative-direction: Council on Environmental Quality, Environmental Protection Agency, Treasury Department (administration), Treasury Department (payment administration)
All U.S. adults with valid Social Security numbers, Low and middle income households, U.S. adult citizens eligible for carbon rebates
Carbon capture and sequestration companies, Direct air capture facility operators, Land conservation organizations
Communities economically dependent on fossil fuel industries, Environmental justice communities
Coal mining companies, Coal producers and mining companies, Coal producers subject to existing coal tax
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "c2fc"
- → Climate Change Finance Corporation
- "the_board"
- → Board of Directors of C2FC
- "the_secretary"
- → Secretary of the Treasury
- "the_administrator"
- → Administrator of the Environmental Protection Agency
- "the_secretary"
- → Secretary of the Treasury
- "the_secretary"
- → Secretary of Agriculture
- "the_secretary"
- → Secretary of Commerce (through Assistant Secretary for Economic Development)
- "the_administrator"
- → Administrator of the Environmental Protection Agency
- "the_chair"
- → Chair of the Council on Environmental Quality
Note: The Secretary refers to different officials depending on context: Secretary of the Treasury for carbon fee and rebate provisions, Secretary of Agriculture for agricultural decarbonization, and Secretary of Commerce for transition assistance
Key Definitions
Terms defined in this bill
The number of metric tons of carbon dioxide emissions with the same global warming potential over a 100-year period as one metric ton of another greenhouse gas
Coal, crude oil (petroleum products), and natural gas
For crude oil: US refinery operators and importers; For coal: producers and importers; For natural gas: US producers and importers; For noncovered fuel emissions: the emitting entity
Any natural living person with a valid SSN or taxpayer ID, at least 18 years old, whose principal place of abode is in the US for more than half the most recent taxable year
$75 per metric ton CO2 in 2027, increasing by $10 per year thereafter, with adjustments based on emission target performance
Iron, steel, steel mill products, aluminum, cement, glass, pulp, paper, chemicals, industrial ceramics, and any energy-intensive trade-exposed manufactured product determined by the Secretary
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