[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 804 Introduced in House (IH)]
103d CONGRESS
1st Session
H. R. 804
To amend the Internal Revenue Code of 1986 to reduce emissions of
carbon dioxide by imposing a tax on certain fuels based on their carbon
content.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 3, 1993
Mr. Stark introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to reduce emissions of
carbon dioxide by imposing a tax on certain fuels based on their carbon
content.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. IMPOSITION OF CARBON TAX ON PRIMARY FOSSIL FUELS.
(a) General Rule.--Chapter 38 of the Internal Revenue Code of 1986
(relating to environmental taxes) is amended by adding at the end
thereof the following new subchapter:
``Subchapter E--Carbon Tax on Primary Fossil Fuels
``Sec. 4691. Tax on coal.
``Sec. 4692. Tax on petroleum.
``Sec. 4693. Tax on natural gas.
``Sec. 4694. Inflation adjustments.
``SEC. 4691. TAX ON COAL.
``(a) General Rule.--There is hereby imposed a tax at the rate
specified in subsection (b) on coal sold by the producer or importer
thereof.
``(b) Rate of Tax.--
``(1) In general.--Except as provided in paragraph (2), the
rate of the tax imposed by subsection (a) shall be $18 per ton.
``(2) Phase-in.--
The rate of the tax
imposed by subsection
Effective during
(a) shall be the fol-
calendar year:
lowing amount per ton:
1994................................. $3.60
1995................................. $7.20
1996................................. $10.80
1997................................. $14.40
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Coal to include lignite.--The term `coal' includes
lignite.
``(2) Ton.--The term `ton' means 2,000 pounds.
``(3) Use treated as sale.--If the producer or importer of
any coal uses such coal, such producer or importer shall be
liable for tax under this section in the same manner as if such
coal were sold by such producer or importer.
``SEC. 4692. TAX ON PETROLEUM.
``(a) General Rule.--There is hereby imposed a tax at the rate
specified in subsection (c) on any petroleum with respect to which
there is a taxable event.
``(b) Taxable Event.--For purposes of this section, the term
`taxable event' means any event which would result in tax being imposed
under section 4611 if--
``(1) such section were applied without regard to
subsections (b)(2), (e), and (f) thereof, and
``(2) section 4612(b) were applied by substituting `section
4692' for `section 4611'.
``(c) Amount of Tax.--
``(1) In general.--Except as provided in paragraph (2), the
rate of the tax imposed by subsection (a) shall be $3.90 per
barrel.
``(2) Phase-in.--
The rate of the tax
imposed by subsection
Effective during
(a) shall be the fol-
calendar year:
lowing amount per barrel:
1994................................. $.78
1995................................. $1.56
1996................................. $2.34
1997................................. $3.12
``(d) Person Liable for Tax.--The person required to pay the tax
imposed by this section on any petroleum shall be determined under the
principles of section 4611(d).
``(e) Definitions and Special Rules.--For purposes of this
section--
``(1) Petroleum.--The term `petroleum' means any petroleum
product including crude oil.
``(2) Barrel.--The term `barrel' means 42 United States
gallons.
``(3) Fraction of barrel.--In the case of a fraction of a
barrel, the tax imposed by this section shall be the same
fraction of the amount of such tax imposed on a whole barrel.
``(4) Certain rules made applicable.--Rules similar to the
rules of subsections (c) and (e) of section 4612 shall apply to
the tax imposed by this section.
``SEC. 4693. TAX ON NATURAL GAS.
``(a) General Rule.--There is hereby imposed a tax at the rate
specified in subsection (c) on--
``(1) natural gas received at a United States pipeline
facility, and
``(2) natural gas entered into the United States for
consumption, use, or warehousing.
``(b) Tax on Certain Uses, Etc.--
``(1) In general.--If--
``(A) any domestic natural gas is used in or
exported from the United States, and
``(B) before such use or exportation, no tax was
imposed on such natural gas under subsection (a),
then a tax at the rate specified in subsection (c) is hereby
imposed on such natural gas.
``(2) Exception for certain uses on premises where
produced.--Paragraph (1) shall not apply to any use of natural
gas for extracting oil or natural gas on the premises where
such natural gas was produced. The preceding sentence shall not
apply to any use involving the combustion of the natural gas.
``(c) Rate of Tax.--
``(1) In general.--Except as provided in paragraph (2), the
rate of the taxes imposed by this section shall be 48 cents per
MCF.
``(2) Phase-in.--
The rate of the taxes
imposed by subsection (a)
Effective during
shall be the fol-
calendar year
lowing amount per MCF
1994................................. $.096
1995................................. $.192
1996................................. $.288
1997................................. $.384
``(d) Persons Liable for Tax.--
``(1) Receipt at pipeline.--The tax imposed by subsection
(a)(1) shall be paid by the operator of the United States
pipeline facility.
``(2) Importation.--The tax imposed by subsection (a)(2)
shall be paid by the person entering the natural gas for
consumption, use, or warehousing.
``(3) Tax on use or exports.--The tax imposed by subsection
(b) shall be paid by the person using or exporting the natural
gas, as the case may be.
``(e) Definitions.--For purposes of this section--
``(1) Natural gas.--The term `natural gas' includes any
natural gas liquid which is not treated as petroleum for
purposes of the tax imposed by section 4692.
``(2) Domestic natural gas.--The term `domestic natural
gas' means any natural gas produced from a well located in the
United States.
``(3) United states pipeline facility.--The term `United
States pipeline facility' means any pipeline in the United
States used for purposes of transporting natural gas (other
than a pipeline which is part of a gathering system).
``(4) MCF.--The term `MCF' means 1,000 cubic feet.
``(5) Other definitions.--The terms `United States' and
`premises' have the respective meanings given such terms by
section 4612(a).
``(6) Fractional part of mcf.--In the case of a fraction of
an MCF, the tax imposed by this section shall be the same
fraction of the amount of such tax imposed on a whole MCF.
``(7) Certain rules made applicable.--Rules similar to the
rules of subsections (b), (c), and (e) of section 4612 shall
apply to the tax imposed by this section.
``SEC. 4694. INFLATION ADJUSTMENTS.
``(a) General Rule.--Each rate of tax which would otherwise be in
effect under this subchapter during any calendar year after 1994 shall
be increased by the percentage (if any) by which--
``(1) the CPI for the preceding calendar year (as defined
in section 1(f)(4)), exceeds
``(2) the CPI for calendar year 1993 (as so defined).
``(b) Rounding.--Any increase under subsection (a) shall be
rounded--
``(1) to the nearest multiple of 10 cents in the case of a
rate in effect under section 4691,
``(2) to the nearest multiple of 1 cent in the case of a
rate in effect under section 4692, and
``(3) to the nearest multiple of 1/10 cent in the case of a
rate in effect under section 4693.''
(b) Clerical Amendment.--The table of subchapters for chapter 38 of
such Code is amended by adding at the end thereof the following new
item:
``Subchapter E. Carbon tax on primary
fossil fuels.''
(c) Effective Date.--The amendments made by this section shall take
effect on January 1, 1994.
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