(1)

climate change, resulting primarily from the combustion of fossil fuels, is an immediate, grave threat to the communities, environment, and economy of the United States;

(2)

severe consequences of climate change have already materialized in the United States, including rising sea levels, increasing temperatures, extreme weather events, flooding, heat waves, loss of biodiversity, and other climate change-driven ecosystem threats;

(3)

the Federal Government jointly with States and localities must develop and implement protective measures to counteract the adverse effects of climate change, protect communities, and build resilience to extreme weather;

(4)

the government response must include protections for communities that are most vulnerable to climate change impacts, especially communities of color, low-income communities, and Tribal and Indigenous communities that are also more likely to have experienced systemic disinvestment and be overburdened by fossil fuel pollution;

(5)

the protective measures necessary to respond to the adverse effects of climate change in the United States will require trillions of dollars of new investment during the decade after the date of enactment of this Act;

(6)

climate change related extreme weather events, such as those described in paragraph (2), cost the United States at least $150,000,000,000 each year and disproportionately affect underserved and overburdened communities, according to the Fifth National Climate Assessment;

(7)

the $100,000,000,000 each year that fossil fuel companies are collectively assessed for the Polluters Pay Climate Fund established in this Act represents only a small portion of the total cost to the Federal government to respond to climate change related extreme weather events and make needed climate change adaptation and resilience investments;

(8)

peer-reviewed research can now determine with great accuracy the share of carbon dioxide released into the atmosphere by the operations and products of specific fossil fuel companies, which is what informs the formulas to determine carbon dioxide emissions that are used in the amendments made by this Act;

(9)

the fossil fuel industry has been aware of the central role that their product plays in causing climate change since before the year 2000;

(10)

the fossil fuel industry must now increase their contribution to government expenditures to protect the Nation from climate disaster; and

(11)

this Act and assessments under the amendments made by this Act are not intended—

(a) In general

Chapter 38 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter:

E Certain fossil fuel emissions

4691. Imposition of tax

(a) Imposition

Each assessable person shall pay to the Secretary of the Treasury not later than the applicable payment date a tax in an amount determined under subsection (b).

(b) Determination of amount

(1) In general

With respect to each assessable person, the tax under this section shall be equal to an amount that bears the same ratio to $1,000,000,000,000 as—

(A)

the assessable person's applicable share of covered carbon dioxide emissions taken into account under this section, bears to

(B)

the aggregate applicable shares of covered carbon dioxide emissions of all assessable persons taken into account under this section.

(2) Determination of applicable share

(A) In general

The applicable share of covered carbon dioxide emissions taken into account under this section for any assessable person shall be the excess (if any) of—

(i)

the covered carbon dioxide emissions attributable to such person (determined in metric tons), as determined by the Secretary based on product-related carbon dioxide emissions of such person, over

(ii)

1,000,000,000 metric tons.

(B) Adjustment

The Secretary may adjust the amount determined under subparagraph (A)(i) with respect to an assessable person who is described in subsection (c)(2)(B)(ii) (or who is a successor in interest to a person described in such subsection) if such person establishes to the satisfaction of the Secretary that a portion of such amount was—

(i)

attributable to the extraction of crude oil by another assessable person who is described in subsection (c)(2)(B)(i) (or a successor in interest to a person described in such subsection), and

(ii)

taken into account in determining such amount for such other assessable person.

(c) Assessable person

For purposes of this section—

(1) In general

The term assessable person means—

(A)

any person that is described in paragraph (2), or

(B)

any successor in interest to a person described in paragraph (2).

(2) Person described

A person is described in this paragraph if such person—

(A)

is a United States person or is engaged in a trade or business within the United States during the period beginning on the date of the enactment of this Act and ending on December 31, 2025,

(B)

during any part of the covered period, was engaged in the trade or business of—

(i)

extracting any fossil fuel, or

(ii)

refining any crude oil, and

(C)

is determined by the Secretary to be responsible for more than 1,000,000,000 metric tons of covered carbon dioxide emissions.

(3) Controlled groups

(A) In general

For purposes of this subsection, all persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single assessable person.

(B) Inclusion of foreign corporations

For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.

(4) Joint and several liability

If more than one person is liable for payment of the tax under subsection (a) with respect to a single assessable person by reason of the application of paragraph (3), all such persons shall be jointly and severally liable for payment of such tax.

(d) Other definitions and rules

For purposes of this section—

(1) Applicable payment date

The term applicable payment date means September 30, 2026.

(2) Covered carbon dioxide emissions

The term covered carbon dioxide emissions means, with respect to any person, the total quantity of carbon dioxide released into the atmosphere during the covered period by reason such person engaging in the trade or business of extracting fossil fuels or of refining crude oil.

(3) Covered period

The term covered period means the period that—

(A)

began on January 1, 2000, and

(B)

ended on December 31, 2023.

(4) Fossil fuel

The term fossil fuel means coal, crude oil, and fuel gases.

(5) Coal

The term coal means anthracite, bituminous, subbituminous, and lignite coal.

(6) Crude oil

The term crude oil means oil or petroleum of any kind and in any form, including bitumen, oil sands, heavy oil, conventional and unconventional oil, shale oil, natural gas liquids, condensates, and related fossil fuel liquids.

(7) Fuel gases

The term fuel gases means natural gas, associated natural gas, conventional and unconventional gas, shale gas, and related methane gas production.

(8) Determination of carbon dioxide emissions

In determining the amount of carbon dioxide emissions with respect to any assessable person—

(A)

an amount equivalent to 942.5 metric tons of carbon dioxide shall be treated as released for every 1,000,000 pounds of coal,

(B)

an amount equivalent to 432,180 metric tons of carbon dioxide shall be treated as released for every 1,000,000 barrels of crude oil, and

(C)

an amount equivalent to 54,440 metric tons of carbon dioxide shall be treated as released for every 1,000,000,000 cubic feet of fuel gases.

(e) Election To pay liability in installments

(1) In general

An assessable person may elect to pay the tax under this section in 9 annual installments of the following amounts:

(A)

20 percent of the tax under this section in the case of the first installment.

(B)

10 percent of the tax under this section in each of the following 8 installments.

(2) Date for payment of installments

If an election is made under paragraph (1), the first installment shall be paid on the applicable payment date and each succeeding installment shall be paid on the same date as the applicable payment date for each calendar year following the calendar year with respect to which the preceding installment was made.

(3) Acceleration of payment

If there is an addition to tax for failure to timely pay any installment required under this subsection, a liquidation or sale of substantially all the assets of the assessable person (including in a title 11 or similar case), a cessation of business by the assessable person, or any similar circumstance, then the unpaid portion of all remaining installments shall be due on the date of such event (or in the case of a title 11 or similar case, the day before the petition is filed). The preceding sentence shall not apply to the sale of substantially all the assets of an assessable person to a buyer if such buyer enters into an agreement with the Secretary under which such buyer is liable for the remaining installments due under this subsection in the same manner as if such buyer were the assessable person.

(4) Proration of deficiency to installments

If an election is made under paragraph (1) to pay the tax under this section in installments and a deficiency has been assessed with respect to such tax, the deficiency shall be prorated to the installments payable under paragraph (1). The part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as a part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary. This subsection shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax.

(5) Election

Any election under paragraph (1) shall be made not later than the applicable payment date and shall be made in such manner as the Secretary shall provide.

(6) Installments not to prevent credit or refund of overpayments or increase estimated taxes

If an election is made under paragraph (1) to pay the tax under this section in installments—

(A)

no installment of such tax shall—

(i)

in the case of a request for credit or refund, be taken into account as a liability for purposes of determining whether an overpayment exists for purposes of section 6402 before the date on which such installment is due, or

(ii)

for purposes of sections 6425, 6654, and 6655, be treated as a tax imposed by section 1, section 11, or subchapter L of chapter 1, and

(B)

the first sentence of section 6403 shall not apply with respect to any such installment.

(f) Regulations

Not later than 18 months after the date of enactment of this section, the Secretary shall promulgate such regulations as are necessary to carry out this section.

(b) No deduction

Section 275(a) of such Code is amended by adding at the end the following new paragraph:

(7)

Taxes imposed by subchapter E of chapter 38.

(c) Clerical amendment

The table of subchapters for chapter 38 of such Code is amended by adding at the end the following new item:

(a) Establishment of fund

(b) Expenditures from fund

(a) In general

Nothing in this Act or the amendments made by this Act shall be construed to relieve any person from liability at common law or under any State or Federal law.

(b) Effect on claims related to climate change

Nothing in this Act or the amendments made by this Act, the Clean Air Act (42 U.S.C. 7401 et seq.), or Federal common law preempts, displaces, or restricts any right or remedy of any person, State, unit of local government, or Tribal government under any State or local law (including common law) relating to an allegation of—

(c) Rule of construction

Nothing in this Act or the amendments made by this Act shall—

(1)

limit, set, or enforce standards for greenhouse gas emissions;

(2)

monitor, report, and keep records of greenhouse gas emissions;

(3)

provide cost recovery for climate adaptation, mitigation, or resilience; or

(4)

conduct or support investigations.