# Plain Language Summary: MARKET CHOICE Act

This bill creates a new tax on greenhouse gas emissions starting in 2023, beginning at $35 per metric ton of carbon dioxide equivalent and increasing each year by 5% plus inflation. The tax applies to fossil fuels—coal, oil, and natural gas—at the point they're produced or imported into the United States. So when a coal mine extracts coal, when an oil refinery produces gasoline, or when natural gas is processed, that's when the tax gets paid by whoever owns the fuel at that moment. The bill also taxes emissions from certain industrial processes and product uses that release greenhouse gases. All the money collected from this tax goes into a new fund called the RISE Trust Fund (Rebuilding Infrastructure And Solutions For The Environment), which would be used to pay for infrastructure projects like fixing roads and bridges, and for helping communities deal with flooding and climate impacts.

To offset this new tax, the bill eliminates the current federal taxes on motor vehicle fuel and aviation fuel—the taxes you see built into gas prices at the pump. So while you might pay more for gasoline through the new emissions tax, you'd save money by not paying the old fuel tax. The bill also includes exemptions and refunds for certain situations: manufacturers can get refunds if they transform fossil fuels into products that eliminate emissions, and anyone who captures and permanently stores carbon dioxide from burning fossil fuels can get a refund for the tax they paid. Additionally, the bill includes provisions to help workers who lose jobs in coal, oil, and gas industries transition to new work.

The bill establishes a National Climate Commission to study and report on climate solutions and creates grants for states to use for infrastructure and climate adaptation projects. It also modifies some existing tax credits related to carbon capture technology and coal projects. The emissions targets built into the law suggest the bill is designed to gradually reduce overall greenhouse gas emissions over time—if emissions come in higher than the targets set for each year, the tax rate automatically increases by an additional $4 per ton to encourage further reductions.

MARKET CHOICE Act

Fitzpatrick, Brian K.

Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act or the MARKET CHOICE Act This bill imposes a tax on the greenhouse gas emissions of fossil fuels, certain industrial processes, and certain product uses. The bill transfers tax revenue to a Rebuilding Infrastructure and Solutions for the Environment Trust Fund (RISE Trust Fund) established by this bill. Specified amounts in the trust fund shall be available for the federal Highway Trust Fund, grants to low-income households, and other specified energy, environmental, infrastructure, and research and development priorities. The bill also <ul> <li> eliminates the federal motor vehicle and aviation fuel taxes, </li> <li>modifies the tax credit for carbon capture and storage and the qualifying advanced coal project tax credit, </li> <li>imposes a moratorium on finalizing and enforcing certain Clean Air Act regulations on greenhouse gas emissions, and </li> <li>establishes a National Climate Commission to review policies to reduce greenhouse gas emissions. </li> </ul> The moratorium on regulations for limiting greenhouse gas emissions expires in 2035 if specified emission targets are not reached.