The bill would create a tax on imported petroleum and natural gas. The tax amount would be based on the methane emissions charges that would apply if facilities in the country of production were subject to a specified U.S. Clean Air Act charge. Importers could use an alternative calculation based on emissions from a product’s supply chain if they provide required data and the countries involved meet customs partnership requirements. The bill would also call for international emissions standards and data collection, and require Treasury to encourage 10 major oil and gas importing countries to adopt similar measures. Treasury would report every two years on whether to add other substances. The tax would apply to sales or uses after December 31, 2025.
If you import petroleum or natural gas, the bill could require you to pay the tax and provide supply-chain information to use the alternative calculation. The bill does not specify how the tax might affect consumers.
The bill creates a tax for importers, but does not give a specific tax rate or estimate total costs. No publicly available information.
The bill’s findings say the measure is intended to help prevent methane emissions, conserve natural resources, and encourage other countries to reduce methane emissions. The findings also say it could support a market for U.S. gas with lower methane emissions.
No publicly available information.