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S. 3198

BillFederalSenateIn Committee
To amend the Internal Revenue Code of 1986 to impose a fee on certain products imported into the United States based on the pollution intensity associated with the production of such products, and for other purposes.
About This Bill
Committee
Latest Action · November 2, 2023
Read twice and referred to the Committee on Finance.
Congress
118th (2023–2025)
Introduced
November 2, 2023
Cosponsors (1)
0D 1R
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Summary

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# Summary: Foreign Pollution Fee Act of 2023 This bill would impose a fee on imported goods based on how pollution-intensive their manufacturing was compared to U.S. production standards. The fee applies to 16 major product categories, including aluminum, steel, cement, chemicals, batteries, and solar panels. Here's how it works: Starting 36 months after enactment, importers would pay a variable fee when bringing covered products into the United States. The fee amount depends on how much more polluting the foreign manufacturing was versus U.S. production of the same product. Products made with pollution levels similar to U.S. standards face zero fees, while dirtier imports face higher fees. The bill aims to gradually reduce pollution intensity differences over two six-year phases, eventually capping all products at a 10 percent pollution difference. The bill creates a National Laboratory Advisory Board to calculate baseline pollution intensity for U.S. production and determine pollution levels for foreign producers. The U.S. Trade Representative can negotiate international partnership agreements with other countries to waive fees if they meet comparable pollution standards. Low-income and lower-middle-income countries get special treatment, including extended deadlines and technical assistance. The bill includes exceptions: products with insufficient domestic production face no fee, defense-related imports are exempt, and products from free trade partners face no fee if their components are also from free trade partners. The bill also prohibits applying this mechanism to domestically produced goods, ensuring it only affects imports.

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