Clean Competition Act
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
This bill creates a carbon border adjustment mechanism by adding a new subchapter to the Internal Revenue Code. It imposes a charge on imported goods based on their carbon intensity -- essentially, how much greenhouse gas was emitted per unit of the good produced. Starting in 2026 for primary goods (steel, aluminum, cement, chemicals, etc.) and 2028 for finished goods, importers would pay a fee calculated by comparing the carbon intensity of the imported good against US industry baselines, multiplied by a cost of pollution starting at $55 per metric ton of CO2-equivalent and rising $5 per year. The bill also provides rebates for exported US goods that have already been charged, and establishes a framework for "carbon clubs" -- trade agreements with countries that maintain comparable carbon pricing and labor/environmental standards, whose goods would be exempt from the charge.
Who Benefits and How
Domestic manufacturers in emissions-intensive industries (steel, aluminum, cement, chemicals, petroleum refining, paper, glass) benefit from protection against foreign competitors who face no carbon costs. Clean energy producers benefit as higher carbon costs incentivize lower-emission production. Workers in these industries benefit from maintained competitiveness of domestic production. Countries that join carbon clubs gain preferential trade access. Least-developed countries receive a phased exemption with charges reduced by 100% initially, declining 10% annually.
Who Bears the Burden and How
Foreign producers with high carbon intensity face effective tariffs on their exports to the US. Importers of carbon-intensive goods pay the carbon intensity charge, which may be passed to consumers through higher prices on goods like steel, aluminum, and cement. Countries that do not join carbon clubs or maintain comparable standards face trade disadvantages. The bill explicitly requires carbon club members to meet labor rights, environmental standards, and anti-corruption requirements, potentially excluding nations that cannot meet these thresholds.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Establishes a carbon intensity charge on imported goods to level the playing field between domestic manufacturers subject to emissions costs and foreign competitors, while providing rebates for exports and enabling carbon club agreements with partner nations
Key Policy Areas
Environment, Trade, Tax, Manufacturing
Primary Purpose
Establishes a carbon intensity charge on imported goods to level the playing field between domestic manufacturers subject to emissions costs and foreign competitors, while providing rebates for exports and enabling carbon club agreements with partner nations
Policy Domains
Clean Competition Act - Carbon Intensity Charge
Identified Gains
Contextual inference, no direct clause citation- Domestic manufacturers in emissions-intensive industries
- Clean energy producers
- Workers in carbon-intensive domestic industries
- Countries joining carbon clubs
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Foreign producers with high carbon intensity
- Importers of carbon-intensive goods
- Fossil fuel extraction companies
- Developing countries not in carbon clubs
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
In CommitteeMr. Whitehouse (for himself, Mr. Blumenthal, Mr. Heinrich, Mr. Schatz, …
Read twice and referred to the Committee on Finance.
Introduced in Senate
Impact analysis is available but no clear stakeholder effects identified. View clause-level analysis →
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_president"
- → President of the United States
- "the_secretary"
- → Secretary of the Treasury
- "the_administrator"
- → Administrator of the Environmental Protection Agency
Key Definitions
Terms defined in this bill
This Act may be cited as the Clean Competition Act.
An agreement between the United States and one or more foreign countries to mutually recognize carbon intensity measurement methodologies, with member countries exempt from the carbon intensity charge on qualifying goods.
The ratio of covered emissions from an eligible facility divided by the total relevant quantity of covered primary goods produced at that facility during the preceding calendar year.
Set at per metric ton of CO2-equivalent for calendar year 2026, increasing by per year thereafter.
Goods from industries assigned specific 6-digit NAICS codes including petroleum, natural gas, coal, paper, chemicals, metals (steel, aluminum, iron), cement, glass, and other emissions-intensive products.
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