Bills · HR 480
IN COMMITTEE· 119TH CONGRESS
House BillHR 480Oil and gasAir quality
Methane Border Adjustment Mechanism Act
INTRO JAN 16· LAST ACTION JAN 16
READING
7MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
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- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenMethane is a potent greenhouse gas that contributes significantly to climate change and air pollution, impacting human health. This bill matters because it seeks to reduce global methane emissions by using economic incentives, specifically by imposing a tax on imports of oil and natural gas from countries that don't regulate methane emissions as stringently as the U.S.
If this bill becomes law, it could lead to cleaner production practices internationally, helping to address climate change and improve air quality. It could also shift the competitive landscape for energy products, potentially favoring U.S. producers or those international producers with lower methane emissions. If it doesn't pass, the U.S. would continue to import these substances without this specific incentive for foreign producers to reduce methane emissions, potentially allowing methane-intensive production to remain competitive.
KEY PROVISIONS
5AI-extractedPROVISION 01
Imposes a tax on imported petroleum and natural gas (called 'methane adjustment substances') sold or used by importers.
This establishes the core financial incentive to reduce methane emissions from foreign sources.
PROVISION 02
The tax amount is calculated based on what the methane emissions charges would be if the foreign country's facilities were located in the U.S. and subject to U.S. Clean Air Act methane regulations.
This creates a 'border adjustment,' essentially applying U.S. environmental standards to imported goods.
PROVISION 03
Requires the Treasury Secretary to recommend adding more substances to the tax list every two years, after consulting with trade agencies.
This provision allows the system to expand over time to cover more products with significant methane emissions.
PROVISION 04
Directs the Secretary, in consultation with other countries, to facilitate an international body to collect methane emissions data and set standards for tracking emissions through supply chains.
This aims to create a robust international framework for measuring and reporting methane emissions, which is crucial for the tax's effectiveness.
PROVISION 05
Allows an alternative tax calculation based on an importer's actual supply chain emissions if the importer provides sufficient information.
This provides flexibility and an incentive for individual importers to accurately track and reduce their own supply chain methane emissions.
SPONSORSHIP
1 + 0
D· California
YRS IN OFFICE
13
BILLS LED
54
ACTION TIMELINE
2 EVENTSJAN 16
Introduced in House
JAN 16
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 480
Congress119th
StatusIn Committee
IntroducedJan 16, 2025
Last actionJan 16, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED JAN 16, 2025
House BillHR 480Oil and gasAir quality
Methane Border Adjustment Mechanism Act
INTRODUCED JAN 16, 2025· LAST ACTION JAN 16, 2025
PASSAGE CHANCES
—%
READING
7 min
COSPONSORS
0
COMPLEXITY
Moderate
