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 bill establishes the Climate Change Finance Corporation (C2FC) as an independent federal agency to finance clean energy deployment, climate-resilient infrastructure, industrial decarbonization R&D, and high-risk clean energy, creates a new subchapter in the Internal Revenue Code establishing definitions for the carbon fee system, including covered entities (oil refineries, coal producers, natural gas producers, importers), and defines key terms for the carbon fee subchapter including Administrator, CO2 equivalent, carbon-intensive products, covered entities, and covered fuels, establishing which industries and products are subject to carbon. It relies on grants, appropriations, definition changes, and tax rate changes. The main policy areas are Energy, Trade, Agriculture, and Environment.
Who Benefits and How
Environmental justice communities could gain revenue opportunities, U.S. adult citizens eligible for rebates could gain revenue opportunities, and U.S. adult citizens eligible for carbon rebates could gain revenue opportunities.
Who Bears the Burden and How
Oil refineries operating in the United States could face higher costs, Natural gas producers and extractors could face higher costs, and Industrial facilities with process emissions over 25,000 tons CO2/year could face higher costs.
Key Provisions
- Establishes the Climate Change Finance Corporation (C2FC) as an independent federal agency to finance clean energy deployment, climate-resilient infrastructure, industrial decarbonization R&D, and high-risk clean energy...
- Creates a new subchapter in the Internal Revenue Code establishing definitions for the carbon fee system, including covered entities (oil refineries, coal producers, natural gas producers, importers)...
- Defines key terms for the carbon fee subchapter including Administrator, CO2 equivalent, carbon-intensive products, covered entities, and covered fuels, establishing which industries and products are subject to carbon...
- Imposes a carbon fee on fossil fuel use, sale, or transfer starting at $75 per metric ton of CO2 in 2027, increasing by $10 annually with cost-of-living adjustments, and establishing emission reduction targets.
- Imposes a fee on noncovered fuel emissions (industrial greenhouse gas emissions not from fuel combustion) starting in 2029, calculated as metric tons of CO2 equivalent multiplied by the carbon fee rate, with quarterly...
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
The bill establishes the Climate Change Finance Corporation (C2FC) as an independent federal agency to finance clean energy deployment, climate-resilient infrastructure, industrial decarbonization R&D, and high-risk clean energy, creates a new subchapter in the Internal Revenue Code establishing definitions for the carbon fee system, including covered entities (oil refineries, coal producers, natural gas producers, importers), and defines key terms for the carbon fee subchapter including Administrator, CO2 equivalent, carbon-intensive products, covered entities, and covered fuels, establishing which industries and products are subject to carbon.
Key Policy Areas
Energy, Trade, Agriculture, Environment
Primary Purpose
The bill establishes the Climate Change Finance Corporation (C2FC) as an independent federal agency to finance clean energy deployment, climate-resilient infrastructure, industrial decarbonization R&D, and high-risk clean energy, creates a new subchapter in the Internal Revenue Code establishing definitions for the carbon fee system, including covered entities (oil refineries, coal producers, natural gas producers, importers), and defines key terms for the carbon fee subchapter including Administrator, CO2 equivalent, carbon-intensive products, covered entities, and covered fuels, establishing which industries and products are subject to carbon.
Policy Domains
General Provisions
Identified Gains
- Environmental justice communities
- U.S. adult citizens eligible for rebates
- U.S. adult citizens eligible for carbon rebates
- Direct air capture facility operators
- Clean energy technology developers and manufacturers
Identified Costs
- Oil refineries operating in the United States
- Natural gas producers and extractors
- Industrial facilities with process emissions over 25,000 tons CO2/year
- Coal producers and mining companies
- Steel and aluminum producers
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