Overview
Title
To strengthen domestic manufacturing, bring next generation iron and steel back to the United States, and revitalize deindustrialized regions.
ELI5 AI
The Steel Modernization Act of 2024 is like a plan to help make the factories in America, where they make strong steel, cleaner and better for the environment. It aims to help these factories have less smoke and pollution, make new kind of steel, and also make sure the people working there are well-trained, with some special rules about buying steel from other countries to help American steelmakers.
Summary AI
H. R. 9334, titled the "Steel Modernization Act of 2024," aims to upgrade and enhance the steel and iron industry in the United States. It focuses on modernizing facilities to reduce greenhouse gas emissions, encouraging innovation, and implementing tariffs on imported steel to protect domestic producers. The bill also seeks to provide financial assistance and tax credits for projects that implement cutting-edge technologies to produce steel with near-zero emissions, while emphasizing worker training, community engagement, and environmental justice. Additionally, a portion of the revenue generated from tariffs will be utilized for climate and clean energy programs globally.
Published
Keywords AI
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Bill Statistics
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Language
Complexity
AnalysisAI
The bill titled "Steel Modernization Act of 2024" aims to enhance domestic manufacturing, especially in iron and steel sectors, by incentivizing cleaner production methods and targeting emissions reductions. The bill sets the framework for financial support, creates pilot programs, introduces tax credits, imposes tariffs on less eco-friendly imports, and guides revenues toward related expenses and support funds.
General Summary of the Bill
The Steel Modernization Act of 2024 is a multifaceted legislative proposal designed to rejuvenate American iron and steel production while reducing the industry's carbon footprint. It outlines several initiatives, such as providing financial assistance to projects that adopt advanced manufacturing technologies, conducting pilot programs, offering tax incentives for the production of low-emission iron, and imposing tariffs on steel imports based on their emissions intensity. Additionally, the bill stipulates the spending of revenue generated from these tariffs on furthering industrial modernization and providing international support for decarbonization efforts.
Summary of Significant Issues
One major issue revolves around the bill's complexity and its extensive cross-referencing with existing laws, which could complicate implementation and compliance. The requirement for substantial financial contributions from entities applying for assistance may deter smaller companies with limited resources. Moreover, the provisions for community benefits agreements and stringent labor requirements might pose challenges, especially for entities not accustomed to such negotiations.
The bill defines certain terms broadly, like “foreign entity of concern,” which may hinder international partnerships and investments. The inflation adjustment mechanisms included in certain sections introduce financial uncertainties, particularly if inflation rates fluctuate unpredictably.
Impact on the Public
For the general public, this bill represents a step toward addressing climate change by incentivizing more sustainable industrial practices. The increased focus on emissions reduction aligns with broader environmental goals, potentially improving public health by limiting industrial pollution. Job creation in industries adopting advanced technologies could stimulate economies in regions historically reliant on manufacturing.
However, consumers might see price increases in steel-related products as domestic industries adapt to new standards and tariffs affect import costs. Additionally, the transition to near-zero emissions intensity methods might involve initial disruptions as industries adjust.
Impact on Specific Stakeholders
Industry Participants: Large steel and iron producers might positively view the bill as an opportunity to invest in cleaner technologies, backed by financial assistance and tax incentives. Nonetheless, smaller entities may struggle with the financial and logistical demands posed by the bill, like cost-sharing requirements and compliance with detailed labor standards.
Environmental and Community Groups: These stakeholders would likely support the bill's commitment to reducing greenhouse gas emissions and its focus on community benefits. However, actual enforcement and operationalization of these benefits hinge on clear oversight, which the bill seems to lack, leading to potential skepticism about its effectiveness without transparent accountability mechanisms.
International Partners: Countries exporting steel to the U.S. with higher emissions intensities might face economic challenges due to new tariffs. The broad definition of "foreign entity of concern" could also strain international relations and discourage cross-border collaborations.
Policy Implementers: Administrators may find managing and enforcing the bill challenging due to its complexity and the need for coordination among multiple federal agencies to ensure consistency and compliance. The lack of detailed oversight structures in the financial management aspect could lead to inefficiencies or unintentional misuse of funds.
In conclusion, while the Steel Modernization Act of 2024 sets ambitious objectives for modernizing American industry and addressing environmental issues, it presents challenges that require careful consideration and adjustment to ensure equitable benefits and effective implementation.
Financial Assessment
The "Steel Modernization Act of 2024" aims to rejuvenate the U.S. iron and steel industry by promoting advanced technologies and reducing greenhouse gas emissions. This legislative proposal includes several financial components, including spending initiatives, appropriations, and financial references, that need careful consideration and discussion.
Financial Allocations and Appropriations
The bill authorizes significant amounts of financial assistance and appropriations to achieve its goals. It includes:
- $10 billion in appropriations to support financial assistance for projects related to modernization and emissions reduction in the steel and iron industry (Section 101(l)).
- Up to $500 million per project for covered financial assistance (Section 101(f)(3)).
- $500 million allocated for a Contract for Differences Pilot Program to stimulate production or purchase of near-zero emissions steel (Section 102(e)).
- Additional tax credits and financial incentives for investments in zero-emission energy projects and facilities, with credits capped at $500 million for such investments (Section 104(f)).
Inflation Adjustment Mechanisms
The bill incorporates mechanisms to adjust financial figures for inflation. Each fiscal year, starting after 2024, specific dollar amounts mentioned in the bill are to be adjusted for inflation. For instance, in Section 101(f)(4), the provisions ensure that the authorized amounts keep pace with inflation. However, as noted in the issues, this adjustment could result in budgetary unpredictability, particularly if inflation rates are volatile. This unpredictability may complicate the management of allocated funds and hinder long-term financial planning.
Connection to Identified Issues
The financial aspects of the bill are closely linked to several identified issues:
Exclusion of Foreign Entities: Sections 103 and 104 exclude entities under the influence of foreign entities of concern from benefiting from certain credits and financial support. This could restrict competition and international collaboration, potentially leading to disputes. Ensuring transparency and clarity regarding what constitutes a "foreign entity of concern" could mitigate some of these challenges.
Complexity and Comprehension: The bill's complexity and cross-referencing with other legislative acts might impede understanding and compliance, particularly for smaller stakeholders. These complexities could lead to increased administrative burdens, especially when coupled with the financial aspects like inflation adjustments and qualification criteria for financial assistance.
Lack of Oversight: The issues raised about the lack of transparent oversight mechanisms for funds allocated in Sections 301 and 302 suggest a risk of financial mismanagement. Without robust mechanisms to monitor the use of appropriated funds, there is a potential for inefficiencies or misuse, drawing public and political scrutiny.
Community and Labor Agreements: The financial burden of negotiating community benefits agreements and fulfilling obligations could be perceived as too complex for some entities. The requirement in Section 101(h) to have legally binding community benefit agreements could deter participation from smaller entities less equipped to handle such negotiations.
Summary
The financial references in the "Steel Modernization Act of 2024" demonstrate a robust commitment to enhancing the domestic steel and iron industry through significant spending and tax incentives. However, to address the concerns identified, it is crucial to establish clear guidelines and oversight mechanisms to ensure financial allocations are used effectively and efficiently. Additionally, maintaining flexibility and clear definitions regarding foreign entity involvement and community obligations can help prevent barriers to participation and ensure the goals of the legislation are met without unintended complications.
Issues
The broad definition of 'foreign entity of concern' in sections 103(c)(1)(A), 104(d)(1), and other related sections might create barriers for some international collaborations and investments, raising political and economic concerns.
The requirement for community benefits agreements and binding obligations in section 101(h) could deter participation from entities burdened by the perceived risk and complexity of these negotiations, posing ethical and legal challenges.
The inflation adjustment mechanisms in sections 101(f)(4) and similar sections throughout the bill may lead to budgetary and financial unpredictability if inflation rates are unstable, impacting the allocation and sustainability of appropriations.
The emphasis on labor agreements and representation under section 101(g) might be difficult for smaller entities to navigate and could result in increased operational costs or legal complexities.
The broad and potentially vague definitions of environmental terms and community designations in section 108, like 'environmental justice community' and 'frontline community', might result in inconsistent application or legal ambiguity.
The exclusion of entities controlled by foreign entities of concern from various credits, such as in sections 103 and 104, might limit competition and lead to disputes over the interpretation and enforcement of these criteria.
The complexity and cross-referencing of various sections and legislative acts, such as the Steel Modernization Act within sections 104 and 48F, could complicate comprehension and compliance for stakeholders, creating administrative burdens.
The lack of a transparent oversight mechanism for funds allocated under sections 301 and 302 can lead to financial mismanagement or inefficiencies, which may attract public and political scrutiny.
The prohibition on using funds for facilities not located in the U.S. in section 107 may limit potential beneficial international projects, raising ethical and strategic concerns.
The imposition of emissions intensity tariffs under section 202 without clear definitions or guidelines for 'covered products' could lead to trade disputes or conflict with international agreements.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title; table of contents Read Opens in new tab
Summary AI
The Steel Modernization Act of 2024 begins with its short title and table of contents, outlining its components. It covers various aspects such as financial assistance, a pilot program, and credits related to emissions reductions in steel production, establishing tariffs on high-emission imported steel, and detailing how the generated revenue will be spent.
101. Covered financial assistance Read Opens in new tab
Summary AI
The bill section outlines a program where the U.S. Secretary of Energy can give financial support to projects that use advanced technologies to reduce emissions at iron and steel facilities. It details who can apply for these funds, the requirements for projects, how to prioritize which projects get funded, and the expectations for creating jobs and community benefits.
Money References
- With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code; (K) with respect to any eligible facility for which the total estimated cost of the construction contract is $25,000,000 or more, an assurance that every contractor and subcontractor engaged in the construction on the project agree, for that project, to negotiate or become a party to a project labor agreement as that term is defined in section 22.502 of title 48, Code of Federal Regulations; and (L) for eligible entities that are applying for more than $50,000,000 of covered financial assistance under this section— (i) a plan for how the eligibly entity will carry out the training program described in subsection (g)(1); (ii) a community benefits plan that meets the requirements of subsection (h); and (iii) a commitment and plan to conduct town halls with local communities, including frontline communities, membership-based nonprofit organizations with members in the community, and labor organizations, and get letters of support from community groups representing a broad range of constituencies that demonstrate that the groups understand the eligible entity’s planned project and agree to it.
- (3) TRAINING.—Eligible entities that receive covered financial assistance of more than $50,000,000 under this section shall meet the requirements under subsection (g). (4) COMMUNITY BENEFITS.—Eligible entities that receive covered financial assistance of more than $50,000,000 under this section shall meet the requirements under subsection (h). (5) WAGES.—Eligible entities that receive covered financial assistance under this Act shall comply with the requirements under subsection (c)(1)(J).
- (6) PROJECT LABOR AGREEMENTS.—With respect to any eligible facility for which the total estimated cost of the construction contract is $25,000,000 or more, the eligible entity shall comply with the requirements under subsection (c)(1)(K).
- (e) Priority.—The Secretary of Energy shall— (1) in awarding covered financial assistance under this section, give priority— (A) to eligible entities that will support training of current and former workers to build skills required to work in an upgraded or new facility and retention of such current workers; (B) to eligible entities that will ensure the utilization of registered apprentices during the construction of the eligible facility in accordance with the standards and requirements set forth in parts 29 and 30 of title 29, Code of Federal Regulations; (C) to projects that will be carried out in existing or legacy iron or steel-making communities; (D) to eligible entities that commit to hiring at least 25 percent of the applicable workforce from an existing or legacy iron or steel-making community; (E) to projects based on the extent to which the applicable project would provide the greatest benefit to the greatest number of people within the metropolitan area in which the eligible facility is located; (F) to projects based on the expected greenhouse gas emissions reductions to be achieved by carrying out the applicable project; (G) to projects based on the extent to which the applicable project will enable the steel or iron industry to decrease its greenhouse gas emissions by 2050; (H) to projects that will result in the largest improvement in air quality; (I) to projects to upgrade blast furnaces that actively produce iron as of the date of enactment of this Act; (J) to eligible entities based on whether the applicable eligible entity participates or would participate in a program that connects producers of near-zero emissions intensity steel or near-zero emissions intensity iron with buyers of such near-zero emissions intensity steel or near-zero emissions intensity iron; (K) to eligible entities that commit, and provide a plan, to source at least 30 percent of electricity for use at the project site from zero-carbon sources within 2 years of receiving the covered financial assistance, and use 100 percent zero-carbon electricity by 2035, with the Secretary of Energy determining the rate at which such zero-carbon electricity use should scale to 100 percent; and (L) to projects that would result in an increased supply of iron or steel products that are needed by current and prospective end users as identified through a request for information issued not later than 2 months after the date of enactment of this Act by the Department of Energy’s Office of Clean Energy Demonstrations; and (2) in awarding covered financial assistance for over $50,000,000 under this section, give priority to eligible entities that commit to— (A) employing local individuals and individuals from frontline communities, and providing robust training, workforce development opportunities, mentorship programs and career advancement opportunities to these individuals; (B) and provide a plan for— (i) contracting with an objective and independent third party to conduct a report to forecast the impact of the applicable proposed project on pollution and health of individuals in the project area; and (ii) contracting with an objective and independent third party to conduct air quality monitoring before any construction associated with the proposed project begins and continuing until 6 months after such construction ends, in frontline communities that are exposed to persistent air pollution and within 25 miles of the metropolitan area where which such construction will occur; and (C) building new zero-carbon electricity generation capacity, hydrogen generation capacity, or energy storage capacity. (f) Cost share and amounts.
- (3) TOTAL AMOUNT.—The amount of covered financial assistance provided under this section shall not exceed $500,000,000 per project.
- — (A) IN GENERAL.—In the case of any calendar year beginning after 2024, there shall be substituted for any dollar amount described in subparagraph (B), an amount equal to the product of— (i) such dollar amount, multiplied by (ii) the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) of the Internal Revenue Code of 1986 for such calendar year, determined by substituting “2023” for “1990”. (B) AMOUNTS DESCRIBED.—Subparagraph (A) shall apply with respect to each dollar amount in— (i) subsection (c)(1)(J); (ii) subsection (e)(2); (iii) paragraph (3) of this subsection; (iv) subsection (g)(1); and (v) section 201. (g) Supporting good careers.
- — (A) IN GENERAL.—Beginning on the date that an eligible entity receives any amount of covered financial assistance under this Act in excess of $50,000,000, and ending on the date that is 5 years after the date the eligible entity received such covered financial assistance, an eligible entity shall— (i) carry out a training program described in subparagraph (B); (ii) reserve 5 percent of the labor costs of the eligible entity to carry out such training program; and (iii) not later than 12 months after any such receipt, certify to the Secretary that the eligible entity is carrying out such training program.
- — (I) AMOUNT.—The Federal share of a stipend provided to an individual described in clause (i)(IV) shall be— (aa) equal to $500 for each month; and (bb) not more than $2500 in aggregate.
- (C) GOVERNMENT MATCH.— (i) AMOUNT.—During the period described in subparagraph (A), the Secretary of Energy shall provide to an eligible entity, on a monthly basis for each individual participating in training program carried out by the eligible entity, the lesser of— (I) $500; or (II) an amount not to exceed 25 percent of— (aa) the training participant’s salary described in subparagraph (B)(iii); or (bb) if the training participant is not guaranteed full-time employment after completion of the training program, the stipend provided to the training participant. (ii) MAXIMUM.—The Secretary of Energy may not provide to an eligible entity more than $2,500 per training participant for each instance of covered financial assistance provided to the eligible entity.
- (k) Termination of awards.—The Secretary of Energy may not award covered financial assistance under this section after December 31, 2032. (l) Authorization of appropriations.—There is authorized to be appropriated to carry out this section $10,000,000,000. ---
102. Contract for differences pilot program Read Opens in new tab
Summary AI
The Secretary of Energy will create a pilot program to fund the production or purchase of near-zero emissions intensity steel through competitive contracts, including at least one contract for steel made using a direct reduced iron furnace, to be awarded within 10 years of the Act's enactment. Contracts will cover the cost difference between the near-zero emissions steel and conventional steel, and participating entities must comply with specific labor requirements if their projects exceed $25 million.
Money References
- (c) Amount.—The amount of a payment, with respect to near-zero emissions intensity steel described in subsection (a), to an entity with which the Secretary of Energy has entered into a contract under the pilot program established under subsection (a) shall be— (1) the cost of such near-zero emissions intensity steel that is produced or purchased; minus (2) the applicable fair market value, as determined by the Secretary of Energy, to produce or purchase an equal quantity of conventional steel. (d) Wages and project labor agreement requirements.—An eligible entity that enters into a contract under the pilot program established under this section shall— (1) comply with the requirements under section 101(c)(1)(J); and (2) with respect to any eligible facility for which the total estimated cost of the construction contract is $25,000,000 or more, comply with the requirements under section 101(c)(1)(K). (e) Authorization of appropriations.—There is authorized to be appropriated $500,000,000 to carry out this section. ---
103. Near-zero emissions intensity iron production credit Read Opens in new tab
Summary AI
The proposed amendment provides a tax credit of $89 per ton for eligible taxpayers who produce near-zero emissions intensity iron, with certain limitations based on previous credits and contractual production, and includes an inflation adjustment for future years. The credit cannot be claimed beyond December 31, 2045, and amendments apply to iron produced after the enactment of the Act.
Money References
- “(a) In general.—For purposes of section 38, in the case of an eligible taxpayer, the near-zero emissions intensity iron production credit for any taxable year is an amount equal to $89 per ton of near-zero emissions intensity iron produced by the taxpayer at an eligible facility during such taxable year.
- “(e) Inflation adjustment.—In the case of any taxable year beginning in a calendar year after 2024, there shall be substituted for the dollar amount in subsection (a) an amount equal to the product of— “(1) such dollar amount, multiplied by “(2) the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting ‘2023’ for ‘1990’. “(f) Sunset.—This section shall not apply to taxable years beginning after December 31, 2045.”
45BB. Near-zero emissions intensity iron production credit Read Opens in new tab
Summary AI
The section establishes a tax credit of $89 per ton for producing near-zero emissions iron, available to certain U.S.-controlled taxpayers that meet specific requirements. The credit is limited to iron produced at eligible facilities for up to 10 years, is not applicable to iron produced under certain contracts, and will be adjusted for inflation starting in 2025, ending after 2045.
Money References
- (a) In general.—For purposes of section 38, in the case of an eligible taxpayer, the near-zero emissions intensity iron production credit for any taxable year is an amount equal to $89 per ton of near-zero emissions intensity iron produced by the taxpayer at an eligible facility during such taxable year.
- (e) Inflation adjustment.—In the case of any taxable year beginning in a calendar year after 2024, there shall be substituted for the dollar amount in subsection (a) an amount equal to the product of— (1) such dollar amount, multiplied by (2) the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting “2023” for “1990”. (f) Sunset.—This section shall not apply to taxable years beginning after December 31, 2045. ---
104. Green iron and steel facility energy investment credits Read Opens in new tab
Summary AI
The proposed amendments introduce two new tax credits: the On-Site Zero-Emission Energy Investment Credit and the Iron and Steel Green Energy and Grid System Upgrade Investment Credit. These credits, available to eligible taxpayers, aim to encourage investments in zero-emission energy facilities and upgrades to iron and steel grid systems, with specific criteria for project eligibility, limitations on financial assistance, and a total credit cap of $500,000,000 until the end of 2045.
Money References
- “(B) LIMITATION ON AGGREGATE FINANCIAL ASSISTANCE.—The amount which is treated as the qualified investment for all taxable year with respect to any qualified facility project shall not exceed the amount that is equal to— “(i) $500,000,000, minus “(ii) the sum of— “(I) any financial assistance provided to such project pursuant to the Steel Modernization Act of 2024, “(II) any credits allowed for any taxable year relating to such project under this section, plus “(III) any credits allowed for any taxable year relating to such project under section 48G. “(c) Qualified facility project.—In this section, the term ‘qualified facility project’ means a project, any portion of the qualified investment of which is certified by the Secretary under subsection (e) as eligible for a credit under this section, which re-equips, expands, or establishes a zero-carbon electricity or heat generating or storage facility which is located on-site with an eligible facility (as such term is defined in section 108 of the Steel Modernization Act of 2024). “
- “(B) LIMITATION.—The total amount of credits that may be allocated under the program shall not exceed $500,000,000.
- “(f) Inflation adjustment.—In the case of any taxable year beginning in a calendar year after 2024, there shall be substituted for the dollar amount in subsection (b)(3)(B)(i) an amount equal to the product of— “(1) such dollar amount, multiplied by “(2) the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting ‘2023’ for ‘1990’. “(g) Sunset.—This section shall not apply to taxable years beginning after December 31, 2045.
48F. On-site zero-emission energy investment credit Read Opens in new tab
Summary AI
The U.S. Congress bill section provides a 10% tax credit for investments in on-site zero-emission energy projects for eligible taxpayers. It outlines the conditions for qualifying investments, limitations on credits, criteria for certifying projects, and procedures for reallocating credits, with a sunset date for these provisions on December 31, 2045.
Money References
- (B) LIMITATION ON AGGREGATE FINANCIAL ASSISTANCE.—The amount which is treated as the qualified investment for all taxable year with respect to any qualified facility project shall not exceed the amount that is equal to— (i) $500,000,000, minus (ii) the sum of— (I) any financial assistance provided to such project pursuant to the Steel Modernization Act of 2024, (II) any credits allowed for any taxable year relating to such project under this section, plus (III) any credits allowed for any taxable year relating to such project under section 48G. (c) Qualified facility project.—In this section, the term “qualified facility project” means a project, any portion of the qualified investment of which is certified by the Secretary under subsection (e) as eligible for a credit under this section, which re-equips, expands, or establishes a zero-carbon electricity or heat generating or storage facility which is located on-site with an eligible facility (as such term is defined in section 108 of the Steel Modernization Act of 2024).
- (B) LIMITATION.—The total amount of credits that may be allocated under the program shall not exceed $500,000,000.
- (f) Inflation adjustment.—In the case of any taxable year beginning in a calendar year after 2024, there shall be substituted for the dollar amount in subsection (b)(3)(B)(i) an amount equal to the product of— (1) such dollar amount, multiplied by (2) the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting “2023” for “1990”. (g) Sunset.—This section shall not apply to taxable years beginning after December 31, 2045.
48G. Iron and steel green energy and grid system upgrade investment credit Read Opens in new tab
Summary AI
The section establishes a 10% investment credit for eligible taxpayers who invest in iron and steel green energy and grid system upgrades. It defines key terms like "eligible taxpayer," "qualified investment," "qualified interconnection property," "qualified property," "qualified facility," and "eligible facility," and notes that the credit will no longer apply after December 31, 2045.
105. Study and report on demand generation Read Opens in new tab
Summary AI
The Secretary of Energy is required to conduct a study and release a report on possible new government actions to increase demand for iron and steel that produce very low emissions. This includes looking at demand linked to industries like shipbuilding, railroads, and offshore wind power.
106. Report on strategy to bring zero-greenhouse gas emissions electricity to the electric grid Read Opens in new tab
Summary AI
The section requires the Secretary of Energy to submit a report to Congress within one year, outlining a comprehensive government plan to increase zero-greenhouse gas emissions electricity in the electric grid, improve transmission and regional energy systems, and ensure affordability for industrial users. It also involves assessing the materials needed for this strategy and recommending investments and policies to produce these materials domestically.
107. Prohibition Read Opens in new tab
Summary AI
The section prohibits any funds from being used for building or modifying facilities outside the United States or for any entity partly or fully owned by the Chinese government or a concerning foreign entity.
108. Definitions Read Opens in new tab
Summary AI
This section provides definitions for various terms related to iron and steel production, focusing on technologies and processes that reduce greenhouse gas emissions. It also defines terms relating to communities affected by such industries, specific financial assistance mechanisms, and criteria for low-emission production standards.
201. Calculation of emissions intensity Read Opens in new tab
Summary AI
The section requires the United States International Trade Commission to report on greenhouse gas emissions related to iron and steel production both domestically and internationally by 2026 and every two years thereafter. These reports will consider emissions intensity for various products, suggest tariffs based on emissions differences for imports, and allow entities to petition for tariff determinations if needed.
Money References
- — (1) IN GENERAL.—No later than June 30, 2026, and every 2 years thereafter, the United States International Trade Commission shall transmit to the President and publish a report with respect to the emissions intensity of the manufacture of covered iron and steel products in all foreign markets from which the United States imported in excess of $200,000,000 of iron and steel products, including finished goods, in any 1 of the preceding 5 years.
202. Imposition of emissions intensity tariff Read Opens in new tab
Summary AI
The section establishes an additional tariff on imported iron or steel products, as well as finished goods containing these materials, based on emissions intensity. It requires higher tariffs from countries with nonmarket economies and provides conditions under which these tariffs may be waived, such as when a country has similar greenhouse gas emission costs and standards. If a product is processed in a third country, the tariff is based on that country's emissions intensity unless a petition is approved.
203. Definitions Read Opens in new tab
Summary AI
This section provides definitions for terms used in the bill, including "Administrator" as the head of the Environmental Protection Agency, "CO2-e" as a way to measure the impact of greenhouse gases compared to carbon dioxide, descriptions for certain iron and steel products, and explanations of terms like "finished good," "greenhouse gas," "greenhouse gas emissions," and "relevant parties," which includes various government officials.
301. Administrative expenses Read Opens in new tab
Summary AI
The section authorizes funds to be allocated each year starting in 2025 to the Secretary of Energy. This amount is 75% of what was collected from a specific tariff the previous year, and it is meant to support the implementation of this Act.
302. Economic Support Fund Read Opens in new tab
Summary AI
The section specifies that starting in fiscal year 2025, the U.S. government will allocate 25% of the previous year's tariff collections to the Economic Support Fund. This money will be used to help foreign countries with programs related to reducing carbon emissions and promoting clean energy.