S2712-119

Introduced

To amend the Internal Revenue Code of 1986 to establish a carbon fee to reduce greenhouse gas emissions, and for other purposes.

119th Congress Introduced Sep 4, 2025

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

Energy Environment Climate Tax Policy Agriculture Workforce Development Trade

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)
Model: N/A | Version: bill_summary_v2 | Source: is
Carbon capture companies:
Clean energy technology providers:
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
Model: N/A | Version: bill_summary_v2 | Source: is
Fossil fuel importers:
Importers of carbon-intensive products:
Heavy industrial emitters (steel, cement, aluminum, chemicals):
Fossil fuel producers (oil refiners, coal producers, natural gas extractors): ,

Transition Assistance

Identified Gains
  • Fossil fuel industry workers
  • Communities economically dependent on fossil fuel industries
  • Individuals with barriers to employment
Model: N/A | Version: bill_summary_v2 | Source: is
Fossil fuel industry workers:
Individuals with barriers to employment:
Communities economically dependent on fossil fuel industries:

America's Clean Future Fund Trust

Identified Gains
  • American adults (receive rebate payments)
  • Low and middle income households (rebates may exceed carbon cost increases)
Model: N/A | Version: bill_summary_v2 | Source: is
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)
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Agricultural Decarbonization

Identified Gains
  • Agricultural producers adopting climate-smart practices
  • Traditionally underserved farmers
Model: N/A | Version: bill_summary_v2 | Source: is
Traditionally underserved farmers:
Agricultural producers adopting climate-smart practices:

Climate Change Finance Corporation

Identified Gains
  • Clean energy technology developers
  • Climate-resilient infrastructure developers
  • Environmental justice communities
  • Clean transportation sector
Model: N/A | Version: bill_summary_v2 | Source: is
Clean transportation sector:
Environmental justice communities:
Clean energy technology developers:
Climate-resilient infrastructure developers:

Legislative Progress

Introduced
Introduced Committee Passed
Sep 4, 2025

Mr. 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.

Manufacturing
12 mentions across 6 clauses
+5 positive -7 negative

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

Oil & Gas
8 mentions across 5 clauses
+2 positive -6 negative

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

Agriculture
6 mentions across 4 clauses
+6 positive

Agricultural producers adopting climate-smart practices, Agricultural producers eligible for transition payments, Agricultural producers participating in decarbonization programs

Government
5 mentions across 5 clauses
+1 positive -4 negative

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)

Households
4 mentions across 3 clauses
+4 positive

All U.S. adults with valid Social Security numbers, Low and middle income households, U.S. adult citizens eligible for carbon rebates

Environment
3 mentions across 2 clauses
+3 positive

Carbon capture and sequestration companies, Direct air capture facility operators, Land conservation organizations

Community Development
3 mentions across 3 clauses
+3 positive

Communities economically dependent on fossil fuel industries, Environmental justice communities

Mining
3 mentions across 3 clauses
-3 negative

Coal mining companies, Coal producers and mining companies, Coal producers subject to existing coal tax

15/15
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
General
Domains
Energy Climate Finance
Actor Mappings
"c2fc"
→ Climate Change Finance Corporation
"the_board"
→ Board of Directors of C2FC
Domains
Tax Policy Environment Trade
Actor Mappings
"the_secretary"
→ Secretary of the Treasury
"the_administrator"
→ Administrator of the Environmental Protection Agency
Domains
Tax Policy Social Welfare
Actor Mappings
"the_secretary"
→ Secretary of the Treasury
Domains
Agriculture Climate
Actor Mappings
"the_secretary"
→ Secretary of Agriculture
Domains
Workforce Development Economic Development
Actor Mappings
"the_secretary"
→ Secretary of Commerce (through Assistant Secretary for Economic Development)
Domains
Environment Research
Actor Mappings
"the_administrator"
→ Administrator of the Environmental Protection Agency
Domains
Environment Conservation
Actor Mappings
"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

6 terms
"carbon dioxide equivalent (CO2-e)" §4691

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

"covered fuel" §4691_covered_fuel

Coal, crude oil (petroleum products), and natural gas

"covered entity" §4691_covered_entity

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

"eligible individual" §eligible_individual

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

"carbon fee rate" §4692_carbon_fee_rate

$75 per metric ton CO2 in 2027, increasing by $10 per year thereafter, with adjustments based on emission target performance

"carbon-intensive product" §4691_carbon_intensive

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