Clean Competition Act
Senate Bill Would Slap $60 Carbon Fee on Steel, Cement Imports Starting in 2026
Legislative Progress
Key Points
- Creates a new carbon pollution fee on certain U.S.-made and imported basics like steel, cement, and chemicals, starting in 2026.
- Importers would pay when a product’s pollution level is higher than a shrinking benchmark; some finished goods face fees starting in 2028.
- Big factories covered by federal greenhouse gas reporting would have to report their pollution and electricity use each year, with public carbon-intensity numbers.
- Sets the fee at $60 in 2026 and then raises it each year based on inflation plus an extra increase; companies can lower what they owe by paying for direct air capture.
- Uses some of the money to fund major grants/loans and pay-for-performance deals to help U.S. industry cut pollution, plus overseas climate and clean energy aid tied to trade deals.
Impact Analysis
Personal Impact
Farmers and ranchers could see higher prices for key inputs like fertilizer (nitrogenous fertilizer manufacturing is a covered industry) and fuel, since petroleum refining and petrochemical manufacturing are covered. If foreign fertilizer producers have higher carbon intensity than U.S. producers, import fees could raise fertilizer costs further. However, if U.S. producers are cleaner than the benchmark, domestic input costs might stay stable while dirtier imports become more expensive.
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articles
US Democrats Propose Carbon Border Tax to Boost Manufacturing
Democratic lawmakers reintroduced the Clean Competition Act (CCA), proposing a US carbon border adjustment mechanism to boost domestic manufacturing competitiveness. The bill imposes a carbon intensity charge on sectors like steel, aluminum, and cement starting at $60 per metric ton.
Democrats look to revive carbon border fee talks
The Clean Competition Act would establish a carbon border adjustment mechanism (CBAM) to tax pollution-intensive imports. Sponsors frame the bill as a way to increase American competition with China, the world's top carbon polluter, by taxing high-emitting foreign goods.
Source Information
Document Type
Congressional Bill
Official Title
Clean Competition Act
Data Sources
Sponsor
Cosponsors
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