# Summary of S. 5107: America's Clean Future Fund Act
This bill establishes a comprehensive climate change strategy centered on two main components: a carbon fee system and new federal financing mechanisms for clean energy and climate resilience projects.
The bill creates the Climate Change Finance Corporation, an independent federal agency tasked with financing clean energy deployment, climate-resilient infrastructure, and emissions-reduction technologies. The corporation would be governed by a 7-member board and three working groups focused on environmental justice, worker transition, and research innovation. It would provide grants and loan guarantees prioritizing disadvantaged communities, with at least 40 percent of grant funds benefiting historically overburdened areas. The bill appropriates $7.5 billion annually for fiscal years 2025-2026 to capitalize this agency.
A carbon fee system starts at $65 per metric ton of CO2-equivalent in 2026, increasing by $10 annually (or more if emissions targets are missed), applied to crude oil, natural gas, coal, and other fossil fuels. The bill also imposes fees on certain industrial emissions starting in 2028. Carbon border adjustment fees apply to imported carbon-intensive products while refunding fees on exports.
Revenue from carbon fees funds quarterly rebate payments to eligible individuals earning under $75,000-$150,000 (depending on filing status), beginning in fiscal 2025. Agricultural producers receive transition payments to adopt greenhouse gas-reducing practices. Communities economically dependent on fossil fuel industries receive grants for workforce development, climate resilience infrastructure, and environmental remediation.
The bill requires the EPA to commission studies from the National Academy of Sciences every five years to evaluate progress toward achieving 45 percent greenhouse gas emissions reductions by 2030 and 100 percent reductions by 2050. All funded projects must meet prevailing wage and "Buy American" requirements.
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