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Congress·In Committee·H.R. 6787

Rep. DelBene Introduces Clean Competition Act to Tax Carbon-Heavy Imports and Domestic Industry

Clean Competition Act

3 months ago·View on Congress.gov

Legislative Progress

House
Senate
President
Law

Key Points

  • The bill creates a carbon intensity charge starting in 2026 on roughly 20 energy-intensive industries — including steel, aluminum, cement, petroleum refining, and fertilizer manufacturing — that applies to both domestic production and imports. Companies pay when their carbon intensity exceeds a declining percentage of the U.S. industry baseline.

    From policy text

    “in the case of any covered primary good imported into the United States during any calendar year beginning after December 31, 2025, there is hereby imposed a charge in an amount (rounded to the nearest dollar) equal to the product of”
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  • The carbon price starts at $60 per metric ton of CO2-equivalent in 2026 and rises each year by inflation plus 6 percentage points, making pollution increasingly expensive over time and incentivizing cleaner production methods.
  • The 'applicable percentage' threshold declines from 100% in 2026 to 0% by 2048, meaning that over time every unit of carbon pollution from covered industries faces charges — not just pollution above the industry average. This tightening ratchet is the core mechanism driving decarbonization.
  • The bill appropriates $75 billion to the Department of Energy for grants, rebates, and loans to help domestic factories invest in advanced industrial technology, plus $25 billion in State Department climate and clean energy assistance to facilitate carbon club agreements with other nations.

    From policy text

    “For fiscal year 2027, the amount appropriated for purposes of paragraph (2) shall be $75,000,000,000.”
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  • U.S. exporters of charged goods receive rebates to stay competitive abroad, and the President can negotiate 'carbon club' agreements with other countries that meet emissions-reporting, labor, and environmental standards — potentially waiving import charges for club members.

    From policy text

    “in the case of a person who exports any covered primary good from the United States which was produced in an eligible facility for which a charge has been imposed under section 4692, a refund shall be allowed to such person”
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  • Least developed countries are generally exempt from carbon charges on their exports to the U.S., unless the country accounts for at least 3% of global exports of that product — a provision primarily aimed at shielding the world's poorest nations from trade barriers.

    From policy text

    “in the case of any covered primary good (including any covered primary good which is an input of a finished good) which is imported into the United States and was produced in a relatively least developed country (as described in section 124 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151v)), this paragraph shall not apply.”
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Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Dec 17, 2025House

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.

Dec 17, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

2026-01-01

First carbon intensity charges take effect on domestic production and imports of covered primary goods

Companies in 20 covered industries begin paying fees when their carbon pollution exceeds the industry baseline. Imported goods from high-polluting foreign producers also face charges. The pollution price starts at $60 per metric ton of CO2-equivalent.

2028-01-01

Charges expand to cover finished goods containing covered primary materials

Starting in 2028, the carbon charge expands beyond raw materials to finished products imported into the U.S. that contain more than 1,000 pounds of covered materials (like steel or aluminum). This closes a loophole where countries could avoid the charge by doing minimal processing before exporting.

Source Information

Document Type

Congressional Bill

Official Title

Clean Competition Act

Bill NumberHR 6787
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred 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.

Sponsor

Cosponsors

(6)
D: 6

Analysis generated by AI. Always verify with official sources.