[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2352 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
2d Session
S. 2352
To cap the emissions of greenhouse gases through a requirement to
purchase carbon permits, to distribute the proceeds of such purchases
to eligible individuals, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 29, 2018
Mr. Van Hollen introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To cap the emissions of greenhouse gases through a requirement to
purchase carbon permits, to distribute the proceeds of such purchases
to eligible individuals, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Healthy Climate and Family Security
Act of 2018''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Carbon dioxide and other greenhouse gas emissions
continue to rise. In 2013, CO<INF>2</INF> levels in the
atmosphere reached 400 parts per million for the first time in
human history. Ten of the world's warmest years on record have
occurred since 2000, and 2016 was the warmest year ever
recorded.
(2) The warming of our planet has led to more frequent,
dangerous and expensive extreme weather events, including heat
waves, storms, fires, droughts, floods and tornadoes.
(3) More than 97 percent of climate scientists agree that
our planet is warming, primarily because of the extraction and
burning of fossil fuels.
(4) The atmosphere is a common resource that belongs
equally to all.
(5) Stabilizing the climate can and must be done in a way
that supports vibrant economic growth and a thriving middle
class.
(6) Legislation to address climate change and accelerate
the transition to a clean energy economy must be fair,
transparent and built to last.
SEC. 3. AUCTION OF CARBON PERMITS AND DISTRIBUTION OF HEALTHY CLIMATE
DIVIDENDS.
(a) In General.--The Internal Revenue Code of 1986 is amended by
adding at the end the following new subtitle:
``Subtitle L--Auction of Carbon Permits and Distribution of Healthy
Climate Dividends
``Chapter 101. Cap and Dividend Program Rules.
``Chapter 102. Healthy Climate Dividends.
``Chapter 103. Border Adjustments.
``CHAPTER 101--CAP AND DIVIDEND PROGRAM RULES
``Sec. 9901. Definitions.
``Sec. 9902. Carbon permits.
``Sec. 9903. Auctions.
``Sec. 9904. Compliance obligation.
``Sec. 9905. Penalty for noncompliance.
``Sec. 9906. Carbon capture and sequestration.
``Sec. 9907. Trading.
``Sec. 9908. Banking and borrowing.
``SEC. 9901. DEFINITIONS.
``For purposes of this subtitle:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Carbon permit.--The term `carbon permit' means a
carbon permit established by the Secretary under section
9902(a).
``(3) Covered entity.--The term `covered entity' means--
``(A) in the case of crude oil--
``(i) a refinery operating in the United
States which is designed to serve the primary
purpose of processing liquid fuel from crude
oil, and
``(ii) any importer of any petroleum or
petroleum product (not including crude oil)
into the United States,
``(B) in the case of coal--
``(i) any coal mine operating in the United
States, and
``(ii) any importer of coal into the United
States, and
``(C) in the case of natural gas--
``(i) any person required to submit a
report to the Energy Information Agency on Form
176 by reason of delivering natural gas to an
end user, and
``(ii) any natural gas processor not
described in clause (i) with respect to sales
of natural gas in the United States.
``(4) Covered fuel.--The term `covered fuel' means crude
oil, natural gas, coal, or any other product derived therefrom
for use as a combustible fuel offered for sale in United States
markets.
``(5) Crude oil.--The term `crude oil' includes crude oil
condensates, natural gasoline, shale oil, any bitumen or
bituminous mixture, any oil derived from a bitumen or
bituminous mixture, and any oil derived from kerogen-bearing
sources.
``(6) Fair market value.--The term `fair market value'
means the average auction price for carbon permits during the 4
quarters immediately preceding a failure to surrender, when
required under section 9904, the required number of carbon
permits under such section.
``(7) State.--The term `State' means the several States,
the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and any other
commonwealth, territory, or possession of the United States.
``(8) Vintage year.--The term `vintage year' means the
calendar year for which a carbon permit is established under
section 9902.
``SEC. 9902. CARBON PERMITS.
``(a) In General.--The Secretary, in consultation with the
Administrator, shall establish a separate quantity of carbon permits
for calendar year 2019 and each calendar year thereafter, as set forth
under subsection (b).
``(b) Emissions Reduction Schedule.--
``(1) In general.--The quantity of carbon permits
established by the Secretary, in consultation with the
Administrator, under subsection (a) for any calendar year
before 2050 that is between the nearest target years specified
in paragraph (2) preceding and succeeding such calendar year
shall be the quantity of such permits that represents an equal,
pro rata reduction from the preceding year to the succeeding
year.
``(2) Targets.--
``(A) Initial target.--The quantity of carbon
permits established for 2019 shall be equal to 12.5
percent less than the number of metric tons of carbon
dioxide emitted in the United States in 2005.
``(B) Decadal targets.--The quantity of carbon
permits established for--
``(i) 2020 shall be equal to 20 percent
less than the number of metric tons of carbon
dioxide emitted in the United States in 2005,
``(ii) 2025 shall be equal to 30 percent
less than the number of metric tons of carbon
dioxide emitted in the United States in 2005,
``(iii) 2030 shall be equal to 40 percent
less than the number of metric tons of carbon
dioxide emitted in the United States in 2005,
``(iv) 2035 shall be equal to 50 percent
less than the number of metric tons of carbon
dioxide emitted in the United States in 2005,
``(v) 2040 shall be equal to 60 percent
less than the number of metric tons of carbon
dioxide emitted in the United States in 2005,
``(vi) 2045 shall be equal to 70 percent
less than the number of metric tons of carbon
dioxide emitted in the United States in 2005,
and
``(vii) 2050 shall be equal to 80 percent
less than the number of metric tons of carbon
dioxide emitted in the United States in 2005.
``(3) Reports.--
``(A) Calendar year 2048.--In 2048 the Secretary,
after consultation with the Administrator, will submit
a report to Congress making recommendations concerning
the program established under this subtitle for years
after 2050, including the quantity of carbon permits to
be established and any reductions that may be necessary
to ensure a healthy climate.
``(B) Averting catastrophic climatic impact.--The
Secretary shall report to Congress if the Secretary,
after consultation with the Administrator, determines
the emissions reductions targets under this subsection
should be revised in order to avert catastrophic
climate impacts. Such report shall include recommended
revisions to the existing emissions reduction schedule
and the basis for those recommendations.
``(c) Identification Numbers.--The Secretary shall assign to each
carbon permit established under subsection (a) a unique identification
number that includes the vintage year for that carbon permit.
``(d) Legal Status of Carbon Permits.--
``(1) In general.--A carbon permit does not constitute a
property right.
``(2) Termination or limitation.--Nothing in this subtitle
or any other provision of law shall be construed to limit or
alter the authority of the United States, including the
Secretary acting pursuant to statutory authority, to terminate
or limit a carbon permit.
``(3) Other provisions unaffected.--Nothing in this
subtitle relating to carbon permits issued under this section
shall affect the application of any other provision of law to a
covered entity (including the Clean Air Act), or the
responsibility for a covered entity to comply with any such
provision of law. Regional and State greenhouse gas initiatives
are not preempted by this subtitle.
``(e) Regulations.--Not later than December 31, 2018, the Secretary
shall promulgate regulations to carry out the provisions of this
subtitle.
``SEC. 9903. AUCTIONS.
``(a) Periodic Auctions.--The Secretary shall conduct periodic
public auctions of carbon permits established under section 9902(a).
The Secretary shall conduct at least 4 such auctions in each year for
which carbon permits are established.
``(b) Auction Rules.--The Secretary shall--
``(1) limit auction participation only to covered entities,
``(2) establish a limit on the amount of carbon permits
that can be purchased by a single entity at each auction and an
aggregate limit on the total amount of permits that can be held
by a single entity at any one time that--
``(A) reflects anticipated sector and participant
demand,
``(B) prevents speculation, manipulation, or
hoarding of permits, and
``(C) does not interfere with normal market
competition, and
``(3) have the authority to set a minimum permit price at
auction.
``(c) Unsold Permits.--Any carbon permit unsold at auction may be
offered at the next quarterly auction in the calendar year. Any carbon
permit unsold after the last auction for a calendar year shall be
transferred to the reserve established under section 9908.
``SEC. 9904. COMPLIANCE OBLIGATION.
``(a) In General.--Not later than April 1, 2019, and April 1 of
each year thereafter, a covered entity shall surrender to the Secretary
a quantity of carbon permits at least as great as the number of metric
tons of carbon dioxide that the Secretary, in consultation with the
Administrator, determines would be emitted by the combustion of covered
fuels with respect to which the covered entity made the first sale in
United States markets during the previous calendar year.
``(b) Use Treated as Sale.--For purposes of subsection (a),
consumption for an emitting use by the covered entity of covered fuels
produced by the covered entity shall be treated as a first sale.
``(c) Exemption.--A covered entity shall not have to surrender a
carbon permit for the sale of a covered fuel consumed for a non-
emitting use, as defined and verified by the Secretary in consultation
with the Administrator, unless such covered fuel is sold to a person
issued carbon permits under section 9906.
``SEC. 9905. PENALTY FOR NONCOMPLIANCE.
``(a) In General.--Any covered entity that fails for any year to
surrender, by the deadline described in section 9904, one or more of
the carbon permits due pursuant to such section shall be liable for
payment to the Secretary of a penalty in the amount described in
subsection (b).
``(b) Amount.--The amount of a penalty required to be paid under
subsection (a) shall be equal to the product obtained by multiplying--
``(1) the number of carbon permits that the covered entity
failed to surrender by the deadline, by
``(2) 3 times the fair market value of carbon permits
issued for emissions occurring in the calendar year for which
the carbon permits were due.
``(c) Timing.--A penalty required under this section shall be
immediately due and payable to the Secretary, without demand, in
accordance with regulations promulgated by the Secretary, which shall
be issued not later than 1 year after the date of enactment of this
subtitle.
``(d) No Effect on Liability.--A penalty due and payable by the
covered entity under this section shall not diminish the liability of
the covered entity for any fine, penalty, or assessment against the
covered entity for the same violation under any other provision of law.
``(e) Penalty Not Deductible.--No deduction shall be allowed under
subtitle A for a penalty paid under this section.
``SEC. 9906. CARBON CAPTURE AND SEQUESTRATION.
``(a) In General.--The Secretary shall issue a carbon permit to any
person who the Secretary, in consultation with the Administrator,
determines has safely and verifiably captured and sequestered carbon
dioxide from the combustion of covered fuels in the United States.
``(b) Quantity.--The quantity of each permit issued under
subsection (a) shall be in the amount equivalent to the number of
metric tons of carbon dioxide so captured and sequestered.
``(c) Coordination.--The quantity of permits issued under this
section shall be in addition to the quantity of permits established
under section 9902(a).
``SEC. 9907. TRADING.
``(a) Permitted Transactions.--The lawful holder of a carbon permit
may--
``(1) hold the carbon permit, subject to the limits
established by the Secretary under section 9903(b)(2), or
``(2) sell, exchange, or transfer the carbon permit to a
covered entity consistent with the limits established by the
Secretary under section 9903(b)(2).
``(b) Effectiveness of Carbon Permit Transfers.--No transfer of a
carbon permit shall be effective until a written certification of the
transfer, signed by a responsible official of the transferor, is
received and recorded by the Secretary in accordance with regulations
promulgated under section 9902(e).
``(c) Carbon Permit Tracking System.--The regulations promulgated
under section 9902(e) shall include a system for issuing, recording,
holding, and tracking carbon permits that shall specify all necessary
procedures and requirements for an orderly and competitive functioning
of the carbon permit system. Such regulations shall provide for
appropriate publication of the information in the system on the
Internet.
``SEC. 9908. BANKING AND BORROWING.
``(a) Banking.--A carbon permit may be used to meet the compliance
obligation requirements of section 9904 for emissions in--
``(1) the vintage year for the carbon permit, or
``(2) any calendar year subsequent to the vintage year for
the carbon permit in accordance with subsection (b).
``(b) Reserve.--The Secretary shall establish a reserve for carbon
permits. Carbon permits transferred into the reserve shall be available
in the manner determined by the Secretary when the Secretary determines
that price point for carbon permits determined under subsection (d) is
met and additional carbon permit supply is needed to stabilize the
auction price. Permits in the reserve shall be used on a first in,
first out basis.
``(c) Expiration.--A carbon permit shall not expire unless--
``(1) it is surrendered to the Secretary under section 9904
or section 9907(a)(3),
``(2) it has remained in the reserve for 5 years after
being transferred into the reserve, or
``(3) the Secretary determines by regulation that
expiration is necessary to ensure the authenticity and
integrity of carbon permits or the carbon permit tracking
system.
``(d) Borrowing Future Vintage Year Carbon Permits.--
``(1) In general.--If the auction price for carbon permits
increases by more than 50 percent above the average auction
price for carbon permits during the preceding two years (or, if
before the third year for which auctions are conducted, the
average auction price for carbon permits during the preceding
auctions), the Secretary shall auction as many additional
carbon permits as are necessary to stabilize the auction price.
``(2) Special rules.--
``(A) Coordination with reserve.--Additional
permits may not be auctioned under paragraph (1) until
after all available permits in the reserve for carbon
permits established under subsection (b) have been
used.
``(B) Reduction in vintage year permits.--Any
carbon permits made available under this subsection
shall result in an equivalent reduction in the
aggregate amount of carbon permits made available in
vintage years 2030 through 2050 as set forth in section
9902, and the Secretary shall reduce the number of
carbon permits by an equal percentage in each of those
vintage years.
``CHAPTER 102--HEALTHY CLIMATE DIVIDENDS
``Sec. 9911. Healthy Climate Trust Fund.
``Sec. 9912. Healthy Climate Dividend Payments.
``Sec. 9913. Transparency.
``SEC. 9911. HEALTHY CLIMATE TRUST FUND.
``(a) Establishment.--There is established in the Treasury of the
United States a trust fund to be known as the `Healthy Climate Trust
Fund', consisting of such amounts as may be appropriated to such trust
fund as provided for in this section.
``(b) Transfers.--
``(1) Proceed amounts.--There are appropriated to the
Healthy Climate Trust Fund amounts equivalent to funds received
as proceeds under section 9903.
``(2) Penalty amounts.--There are appropriated to the
Healthy Climate Trust Fund amounts equivalent to funds received
as penalties under section 9905.
``(c) Expenditures.--
``(1) Administrative expenses.--Such amounts as may be
necessary from the Healthy Climate Trust Fund shall be
available to pay the administrative expenses necessary to carry
out this section for each month, but not exceeding the amount
of interest credited to the trust fund under section 9602.
``(2) Healthy climate dividend payments.--Amounts in the
Healthy Climate Trust Fund not used under paragraph (1) for any
month shall be available for making Healthy Climate Dividend
Payments under section 9912.
``SEC. 9912. HEALTHY CLIMATE DIVIDEND PAYMENTS.
``(a) In General.--For purposes of this section:
``(1) Healthy climate dividend payment.--The term `Healthy
Climate Dividend Payment' means the individual pro-rata share,
as determined by the Secretary, of amounts available for any
quarter in the Healthy Climate Trust Fund under section
9911(c)(2). For purposes of the preceding sentence, the amounts
available for any quarter shall be the fraction of the total
amount made available from an auction conducted under section
9903--
``(A) the numerator of which is 1, and
``(B) the denominator of which is the number of
quarters in the period beginning with the quarter in
which such auction is conducted and ending with the
quarter before the quarter in which the next such
auction is scheduled to be conducted.
``(2) Eligible individual.--
``(A) In general.--The term `eligible individual'
means, with respect to any quarter, any individual with
a valid social security number (other than a
nonresident alien individual) who is lawfully present
in the United States for such quarter, as determined
and verified by the Secretary in consultation with any
other Federal entity the Secretary determines
appropriate.
``(B) Opt out.--An individual may elect not to be
treated as an eligible individual.
``(b) Payment of Healthy Climate Dividend.--From amounts made
available under section 9911(c)(2), the Secretary shall make a Healthy
Climate Dividend Payment not later than the end of the calendar quarter
following the calendar quarter in which such amounts are appropriated
to the Healthy Climate Trust Fund under section 9911 to each individual
who is an eligible individual for that quarter. Such payments shall be
made by electronic means to the maximum extent practicable.
``(c) Exclusion From Gross Income.--Gross income shall not include
any Healthy Climate Dividend paid under this section.
``(d) Regulations.--The Secretary shall prescribe such regulations
and other guidance as may be necessary or appropriate to carry out this
section.
``SEC. 9913. TRANSPARENCY.
``(a) Report to Congress.--Not later than June 30, 2019, and at
least annually thereafter, the Secretary shall transmit to Congress a
report accounting for the disposition of amounts in the Healthy Climate
Trust Fund in the previous calendar year.
``(b) Healthy Climate Trust Fund Website.--Not later than 90 days
after the date of the enactment of this subtitle, the Secretary shall
establish and maintain a website to provide the public with information
on the disposition of any amounts in the Healthy Climate Trust Fund.
``CHAPTER 103--BORDER ADJUSTMENTS
``Sec. 9921. Carbon equivalency fee.
``Sec. 9922. Definitions.
``Sec. 9923. Sense of Congress.
``SEC. 9921. CARBON EQUIVALENCY FEE.
``(a) Imports.--The Secretary shall impose carbon equivalency fees
to be collected by the Commissioner responsible for U.S. Customs and
Border Control on imports of carbon-intensive goods. The amount of the
carbon equivalency fee shall be equal to the cost that domestic
producers of a comparable carbon-intensive good incur as a result of--
``(1) prices paid in the acquisition of carbon permits by
covered entities under this subtitle, and
``(2) carbon equivalency fees paid by importers of carbon-
intensive goods used in the production of the comparable
carbon-intensive good.
``(b) Payments to Exporters.--The Secretary shall pay without
interest to persons exporting from the United States carbon-intensive
goods produced in the United States. The amount of the payment shall be
equal to the cost that domestic producers of the carbon-intensive good
incur as a result of--
``(1) prices paid in the acquisition of carbon permits by
covered entities under this subtitle, and
``(2) carbon equivalency fees paid by importers of carbon-
intensive goods used in the production of the comparable
carbon-intensive good.
``(c) Expiration.--This section shall cease to have effect at such
time as and to the extent that--
``(1) an international agreement requiring countries that
emit greenhouse gases and produce carbon-intensive goods for
export markets to adopt equivalent measures comes into effect,
or
``(2) the country of export has implemented equivalent
measures, as determined by the Secretary, in consultation with
the Secretary of State.
``SEC. 9922. DEFINITIONS.
``In this chapter:
``(1) Carbon-intensive good.--The term `carbon-intensive
good' means a good that, as identified by the Secretary, in
consultation with the Administrator, by rule--
``(A) is a primary product, or
``(B) is a manufactured item in which one or more
primary products are inputs and the cost of production
of which in the United States is significantly
increased by reason of the requirements under this
subtitle.
``(2) Primary product.--The term `primary product' means--
``(A) iron, steel, steel mill products (including
pipe and tube), aluminum, cement, glass (including
flat, container, and specialty glass and fiberglass),
pulp, paper, chemicals, or industrial ceramics, and
``(B) any other manufactured product that the
Secretary, in consultation with the Administrator,
determines--
``(i) is sold for purposes of further
manufacture, and
``(ii) generates, in the course of the
manufacture of the product, direct and indirect
greenhouse gas emissions that are comparable
(on an emissions-per-dollar of output basis) to
emissions generated in the manufacture or
production of a primary product identified in
subparagraph (A).
``(3) Equivalent measure.--The term `equivalent measure'
means a tax, or other regulatory requirement that imposes a
cost, on manufacturers of carbon-intensive goods located
outside the United States, by reason of greenhouse gas
emissions in the production of such goods by such
manufacturers, approximately equal to the cost imposed by this
subtitle on manufacturers of comparable carbon-intensive goods
located in the United States.
``SEC. 9923. SENSE OF CONGRESS.
``It is the sense of Congress that the United States should work
proactively under the United Nations Framework Convention on Climate
Change and in other appropriate fora, to establish binding agreements
committing all major greenhouse gas emitting countries and countries
with globally competitive producers of carbon-intensive goods to
contribute equitably to the reduction of global greenhouse gas
emissions on a schedule and order of magnitude necessary to stabilize
the climate.''.
(b) Clerical Amendment.--The table of subtitles for the Internal
Revenue Code of 1986 is amended by adding at the end the following new
item:
``Subtitle L. Auction of Carbon Permits and Distribution of Healthy
Climate Dividends''.
SEC. 4. NON-AUCTION GREENHOUSE GASES.
(a) Definitions.--In this section:
(1) The term ``Administrator'' means the Administrator of
the Environmental Protection Agency.
(2) The term ``non-auction greenhouse gas'' refers to the
gases included on the list in effect under subsection (b).
(b) List of Non-Auction Greenhouse Gases.--
(1) Initial list.--Not later than 2 years after the date of
the enactment of this Act, the Administrator, by rule, shall
finalize and publish a list that--
(A) consists of the anthropogenically emitted gases
that are determined by the Administrator to contribute
to global warming; and
(B) excludes gases to the extent they are--
(i) carbon dioxide emitted by the
combustion of a covered fuel (as such term is
defined in section 9901 of the Internal Revenue
Code of 1986, as added by section 3(a) of this
Act); or
(ii) directly attributable to the
production of animals for food or food
products.
(2) Updates.--The Administrator shall periodically review
and, as appropriate, update the list under paragraph (1).
(c) Regulations.--
(1) In general.--Under the authorities vested in the
Administrator by the Clean Air Act (42 U.S.C. 7401 et seq.) and
any other applicable law (other than this section), the
Administrator shall promulgate regulations addressing the
contribution of non-auction greenhouse gases to global warming.
(2) International competitiveness.--In promulgating
regulations under this subsection, the Administrator shall take
into consideration the effect of such regulations on the
international competitiveness of businesses and industries of
the United States.
(d) Schedule.--
(1) In general.--The regulations under subsection (c) shall
ensure that--
(A) not later than 4 years after the date of
enactment of this Act, requirements take effect to
regulate sources which, collectively, emit not less
than 25 percent of non-auction greenhouse gases emitted
in the United States;
(B) not later than 6 years after the date of
enactment of this Act, requirements take effect to
regulate sources which, collectively, emit not less
than 50 percent of non-auction greenhouse gases emitted
in the United States;
(C) not later than 8 years after the date of
enactment of this Act, requirements take effect to
regulate sources which, collectively, emit not less
than 75 percent of non-auction greenhouse gases emitted
in the United States; and
(D) not later than 10 years after the date of
enactment of this Act, requirements take effect to
regulate sources which, collectively, emit 100 percent
of non-auction greenhouse gases emitted in the United
States.
(2) Baseline.--The percentages specified in paragraph (1)
shall be applied relative to the aggregate quantity of non-
auction greenhouse gases emitted in the United States during
the calendar year in which the initial list under subsection
(b)(1) is required to be finalized by such subsection.
(e) Priorities.--In determining priorities for regulating the
emissions of non-auction greenhouse gases under subsection (c), the
Administrator shall consider--
(1) the degree to which the gases involved contribute to
global warming; and
(2) the speed with which a given reduction would contribute
to stabilizing the climate.
(f) Citizen Suits.--The provisions of section 304 of the Clean Air
Act (42 U.S.C. 7604) shall apply with respect to a violation of a
requirement under this section, or the failure of the Administrator to
perform a non-discretionary act or duty under this section, to the same
extent and in the same manner as such provisions apply with respect to
a violation described in subsection (a) of such section 304 or a
failure to perform a non-discretionary act or duty described in such
subsection.
(g) Report to Congress.--Not later than 2 years after the date of
the enactment of this Act, the Administrator shall submit a report to
the Congress identifying any additions or modifications to statutory
provisions which are needed for the Administrator to effectively
address the contribution of non-auction greenhouse gases to global
warming.
SEC. 5. DISCLOSURE OF INFORMATION.
(a) Limited Disclosure of Identity.--Subsection (l) of section 6103
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(23) Limited disclosure of identity information relating
to healthy climate dividend payments.--
``(A) Department of the treasury.--Individual
identity information shall, without written request, be
open to inspection by or disclosure to officers and
employees of the Department of the Treasury whose
official duties require such inspection or disclosure
for purposes of section 9912.
``(B) Commissioner of social security.--The
Commissioner of Social Security shall, on written
request, disclose to officers and employees of the
Department of the Treasury individual identity
information which has been disclosed to the Social
Security Administration as provided by paragraph (1) or
(5).
``(C) Restriction on disclosure.--Information
disclosed under this paragraph shall be disclosed only
for purposes of, and to the extent necessary in,
carrying out section 9912.''.
(b) Conforming Amendments.--Section 6103(p)(3)(A) of the Internal
Revenue Code of 1986 is amended by striking ``or (18)'' and inserting
``, (23), or (21)''.
SEC. 6. EFFECTIVE DATE.
The amendments made by this Act shall take effect on the date of
the enactment of this Act.
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