What does Preamble of Polluters Pay Climate Fund Act of 2025 do?

This bill is formally titled 'To impose an assessment related to fossil fuel emissions, to establish the Polluters Pay Climate Fund, and for other purposes.' The bill aims to impose an assessment related to fossil fuel emissions. It also seeks to establish the Polluters Pay Climate Fund.

What does SHORT TITLE. of Polluters Pay Climate Fund Act of 2025 do?

This bill is formally titled the Polluters Pay Climate Fund Act of 2025.

What does FINDINGS. of Polluters Pay Climate Fund Act of 2025 do?

This section outlines findings related to climate change and its impacts on the United States. It identifies climate change as an immediate and grave threat resulting primarily from fossil fuel combustion. The text states that severe consequences of climate change have already materialized, including rising sea levels and extreme weather events. It emphasizes the need for the Federal Government, alongside states and localities, to implement protective measures and build resilience. The findings highlight the importance of protecting vulnerable communities, particularly communities of color, low-income communities, and Tribal and Indigenous communities. Significant investment, estimated to be trillions of dollars, will be required to address climate change impacts. Extreme weather events cost the United States at least $150 billion annually and disproportionately affect underserved communities. The text asserts that fossil fuel companies should contribute to government expenditures to protect the nation from climate disaster. The Act is not intended to determine fault or impact the ability of others to hold polluters accountable.

What does TAX RELATING TO CURRENT STOCK OF GREENHOUSE GAS EMISSIONS. of Polluters Pay Climate Fund Act of 2025 do?

This section amends Chapter 38 of the Internal Revenue Code of 1986 by adding a new subchapter, Subchapter E, titled 'Certain Fossil Fuel Emissions'. It imposes a tax on 'assessable persons' engaged in extracting fossil fuels or refining crude oil, based on their covered carbon dioxide emissions. The tax amount is calculated as a ratio of an assessable person's emissions to the aggregate emissions of all assessable persons, with a threshold of 1,000,000,000 metric tons. Assessable persons are U.S. persons or those engaged in trade within the U.S. between January 1, 2000, and December 31, 2023, responsible for over 1,000,000,000 metric tons of covered carbon dioxide emissions. The 'applicable payment date' for the tax is September 30, 2026, and an election to pay in 9 annual installments is permitted. Section 275(a) of the Internal Revenue Code is amended to disallow deductions for taxes imposed by the new subchapter E. The table of subchapters for chapter 38 is amended to include the new subchapter E.

What does POLLUTER PAYS CLIMATE CHANGE FUND. of Polluters Pay Climate Fund Act of 2025 do?

This section establishes the 'Polluters Pay Climate Fund' as a trust fund within the Treasury. The Fund will receive amounts equivalent to taxes received under section 4691 of the Internal Revenue Code. Funds from the Polluters Pay Climate Fund will be available through appropriations Acts for expenditures related to climate change impacts. The Secretary of the Treasury, in consultation with the Administrator of the Environmental Protection Agency and other agencies, will use the Fund for climate resilience, adaptation, disaster response, and environmental justice initiatives. Specific uses include climate-related disaster recovery, climate change adaptation support, energy system resilience, food system resilience, transportation resilience, ecosystem resilience, and public health initiatives. Each fiscal year, at least $15 billion must be allocated to FEMA for disaster response and resilience programs, with $3 billion specifically for the Building Resilient Infrastructure and Communities program. At least $6 billion must be allocated for grants and technical assistance under the Clean Air Act. Forty percent of the funds appropriated each fiscal year must be used for investments benefiting environmental justice communities.

What does AVAILABILITY OF REMEDIES. of Polluters Pay Climate Fund Act of 2025 do?

This section clarifies that the Act does not relieve individuals from existing legal liabilities at common law or under state and federal laws. The Act explicitly states that it does not preempt, displace, or restrict any rights or remedies related to climate change allegations under state or local law. Specifically, claims related to deception about fossil fuel effects, damage from fossil fuel's role in climate change, or failure to avoid such damage are protected. The Act prevents the repayment of funds from the Polluter Pays Climate Change Fund or the use of those funds as evidence or offsets in climate change-related lawsuits. The section covers claims such as nuisance, trespass, design defect, negligence, failure to warn, and deceptive or unfair practices.

What does NON-PREEMPTION OF AUTHORITIES. of Polluters Pay Climate Fund Act of 2025 do?

This section clarifies that the Act does not preempt or supersede existing state or local laws, regulations, policies, or programs. Specifically, this non-preemption clause applies to laws related to greenhouse gas emissions. Covered areas include limiting, setting, or enforcing standards for greenhouse gas emissions. It also applies to monitoring, reporting, and record-keeping of greenhouse gas emissions. Furthermore, it extends to cost recovery for climate adaptation, mitigation, or resilience. Finally, this section protects state and local authorities to conduct or support investigations.

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Polluters Pay Climate Fund Act of 2025

Last updated: 2/7/2025 · Introduced: 2/7/2025

Author: Jerrold Nadler (D-NY)

TL;DR (AI)

This bill establishes a 'Polluters Pay Climate Fund' to receive taxes levied on fossil fuel companies based on their carbon dioxide emissions.
It imposes a tax on companies extracting or refining fossil fuels, calculated based on their emissions relative to others, with a payment deadline of September 30, 2026.
Funds from the Polluters Pay Climate Fund will be used through appropriations for climate resilience, adaptation, disaster response, and environmental justice initiatives.
At least $15 billion annually must be allocated to FEMA for disaster response and resilience, and 40% of funds must benefit environmental justice communities.
The Act clarifies that it does not prevent individuals from pursuing existing legal claims related to climate change or preempt state and local laws regarding greenhouse gas emissions.

119th Congressin committeeOfficial page

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