Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The Clean Competition Act establishes a carbon border adjustment mechanism that charges fees on imported and domestically produced goods based on their carbon intensity—the amount of greenhouse gas emissions per unit of output. Starting in 2026, covered industrial facilities like steel and cement producers must report their emissions annually, and goods exceeding industry carbon baselines will face charges beginning at $60 per ton of excess emissions (adjusted yearly), with imported finished goods subject to similar fees beginning in 2028. The bill also creates two domestic programs to help U.S. manufacturers reduce emissions: a grants and loans program offering up to 50 percent cost-sharing for emissions reduction projects, and a contract program paying manufacturers to produce cleaner goods than current industry standards. To support these initiatives, the bill appropriates $75 billion annually starting in 2027 for domestic manufacturing incentives and $25 billion annually for international climate assistance, with the President authorized to negotiate international agreements with other countries to coordinate carbon pricing. The legislation includes exemptions for least-developed countries and credits for nations with equivalent carbon pricing policies, aiming to reduce industrial emissions while maintaining fair competition for U.S. exporters and manufacturers.
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