Current status is Referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, and Energy and Commerce, 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.

119th CONGRESS

1st Session

H. R. 1135

1. Short title
2. Findings
3. Tax relating to current stock of greenhouse gas emissions
4. Polluter Pays Climate Change Fund
5. Availability of remedies
6. Non-preemption of authorities

1. Short title

This Act may be cited as the "Polluters Pay Climate Fund Act of 2025".

2. Findings

Congress finds that—

(1) - climate change, resulting primarily from the combustion of fossil fuels, is an immediate, grave threat to the communities, environment, and economy of the United States;

(2) - severe consequences of climate change have already materialized in the United States, including rising sea levels, increasing temperatures, extreme weather events, flooding, heat waves, loss of biodiversity, and other climate change-driven ecosystem threats;

(3) - the Federal Government jointly with States and localities must develop and implement protective measures to counteract the adverse effects of climate change, protect communities, and build resilience to extreme weather;

(4) - the government response must include protections for communities that are most vulnerable to climate change impacts, especially communities of color, low-income communities, and Tribal and Indigenous communities that are also more likely to have experienced systemic disinvestment and be overburdened by fossil fuel pollution;

(5) - the protective measures necessary to respond to the adverse effects of climate change in the United States will require trillions of dollars of new investment during the decade after the date of enactment of this Act;

(6) - climate change related extreme weather events, such as those described in paragraph (2), cost the United States at least $150,000,000,000 each year and disproportionately affect underserved and overburdened communities, according to the Fifth National Climate Assessment;

(7) - the $100,000,000,000 each year that fossil fuel companies are collectively assessed for the Polluters Pay Climate Fund established in this Act represents only a small portion of the total cost to the Federal government to respond to climate change related extreme weather events and make needed climate change adaptation and resilience investments;

(8) - peer-reviewed research can now determine with great accuracy the share of carbon dioxide released into the atmosphere by the operations and products of specific fossil fuel companies, which is what informs the formulas to determine carbon dioxide emissions that are used in the amendments made by this Act;

(9) - the fossil fuel industry has been aware of the central role that their product plays in causing climate change since before the year 2000;

(10) - the fossil fuel industry must now increase their contribution to government expenditures to protect the Nation from climate disaster; and

(11) - this Act and assessments under the amendments made by this Act are not intended—

(A) - to be a determination of fault; or

(B) - to have any impact on the ability of any person or other government to hold polluters accountable for harms caused.

3. Tax relating to current stock of greenhouse gas emissions

(a) In general - Chapter 38 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter:

(b) No deduction - Section 275(a) of such Code is amended by adding at the end the following new paragraph:

(7) - Taxes imposed by subchapter E of chapter 38.

(c) Clerical amendment - The table of subchapters for chapter 38 of such Code is amended by adding at the end the following new item:

4. Polluter Pays Climate Change Fund

(a) Establishment of fund

(1) In general - Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

9512. Polluters Pay Climate Fund

(a) Establishment - There is established in the Treasury of the United States a trust fund, to be known as the "Polluters Pay Climate Fund" (hereinafter in this section referred to as the "Fund"), consisting of amounts as are appropriated or credited to such Trust Fund as provided in this section and section 9602(b).

(b) Transfers - There are hereby appropriated to the Fund amounts equivalent to the taxes received in the Treasury under section 4691.

(c) Expenditures from the Fund - Amounts in the fund shall be available, as provided in appropriations Acts, for the purpose of making expenditures to carry out the purposes of section 4(b) of the Polluters Pay Climate Fund Act of 2025.

(2) Clerical amendment - The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item:

(b) Expenditures from fund

(1) Definitions - In this subsection:

(A) Administrator - The term Administrator means the Administrator of the Environmental Protection Agency.

(B) Environmental justice community - The term environmental justice community means a community with significant representation of communities of color, low-income communities, or Tribal and Indigenous communities that experiences, or is at risk of experiencing, higher or more adverse human health or environmental effects as compared to other communities.

(C) Fund - The term Fund means the Polluters Pay Climate Change Fund established under section 9512 of the Internal Revenue Code of 1986.

(D) Secretary - The term Secretary means the Secretary of the Treasury.

(2) Use of fund amounts

(A) General purposes - The Secretary, in consultation with the Administrator and the heads of other relevant agencies, shall use amounts in the Fund for the purposes of furthering a comprehensive and equitable Federal response to climate change impacts through investments in climate resilience, adaptation, disaster response, and environmental justice, including—

(i) - climate-related disaster recovery and mitigation support;

(ii) - climate change adaptation support through climate and disaster planning assistance, funding for climate-resilient infrastructure, and improved climate and extreme weather prediction capabilities;

(iii) - initiatives that increase the climate resilience of energy systems through energy efficiency, grid resilience, and distributed electricity generation initiatives;

(iv) - initiatives that increase the climate resilience of the food system through support for climate-resilient farming practices;

(v) - initiatives that increase the climate resilience of the transportation system through planning and climate change adaptation support;

(vi) - initiatives that increase the climate resilience of ecosystems through conservation, restoration, and wildfire management activities;

(vii) - support for climate-related public health initiatives, including efforts to address extreme heat; and

(viii) - initiatives that increase the climate resiliency of drinking water and stormwater infrastructure.

(B) Specified uses - In carrying out subparagraph (A) each fiscal year and to the greatest extent practicable, the Secretary shall use amounts in the Fund—

(i) - to provide funding of not less than $15,000,000,000 to the Federal Emergency Management Agency for response and resilience programs of the Federal Emergency Management Agency to address climate-related disasters, including hurricanes, flooding, extreme heat, and wildfires, of which not less than $3,000,000,000 shall be used to carry out the Building Resilient Infrastructure and Communities program under section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133); and

(ii) - to provide funding of not less than $6,000,000,000 for grants and technical assistance under section 138 of the Clean Air Act (42 U.S.C. 7438), subject to the condition that the Administrator may determine the appropriate amounts to be used for those grants and that technical assistance.

(C) Environmental justice set aside - Of the amounts appropriated from the Fund each fiscal year, 40 percent shall be used for investments that benefit environmental justice communities.

(D) Selection - For the purpose of determining how to award amounts appropriated from the Fund in excess of the amounts required to be used under subparagraph (B), the Secretary, in coordination with the Administrator and the heads of other relevant agencies, shall establish selection criteria, which shall give the highest priority to projects or other activities that are most impactful in achieving the purposes described in subparagraph (A), as determined by the Secretary, in coordination with the Administrator and the heads of other relevant agencies.

5. Availability of remedies

(a) In general - Nothing in this Act or the amendments made by this Act shall be construed to relieve any person from liability at common law or under any State or Federal law.

(b) Effect on claims related to climate change - Nothing in this Act or the amendments made by this Act, the Clean Air Act (42 U.S.C. 7401 et seq.), or Federal common law preempts, displaces, or restricts any right or remedy of any person, State, unit of local government, or Tribal government under any State or local law (including common law) relating to an allegation of—

(1) - deception concerning the effects of fossil fuel on climate change;

(2) - damage or injury resulting from the role of fossil fuel in contributing to climate change; or

(3) - the failure to avoid damage or injury related to climate change, including claims for nuisance, trespass, design defect, negligence, failure to warn, or deceptive or unfair practices and claims for injunctive, declaratory, monetary, or other relief.

(1) - require the repayment of any funds made available from the Polluter Pays Climate Change Fund established under section 9512 of the Internal Revenue Code of 1986 and used pursuant to section 4(b) as a result of any award of damages imposed by a court of law relating to any causes of action or allegations described in subsection (b); or

(2) - permit the use of any such funds—

(A) - as evidence in such an action or allegation; or

(B) - to offset any award of damages in such an action or allegation.

6. Non-preemption of authorities

Nothing in this Act or the amendments made by this Act shall be construed to preempt or supersede any State or local law, regulation, policy, or program, including laws, regulations, polices, and programs that—

(1) - limit, set, or enforce standards for greenhouse gas emissions;

(2) - monitor, report, and keep records of greenhouse gas emissions;

(3) - provide cost recovery for climate adaptation, mitigation, or resilience; or

(4) - conduct or support investigations.

119-HR1135

Polluters Pay Climate Fund Act of 2025