# What the FAIR Transition and Competition Act Does

This bill creates a new tax on imported goods based on how much pollution was created when making them. Starting in 2024, when companies import certain products into the United States, they'll have to pay an extra fee calculated by multiplying the pollution cost of making that product by how much greenhouse gas was actually emitted during production. Think of it like adding an environmental price tag to imports.

The bill focuses on specific industries and products: steel, aluminum, cement, iron, and anything made with more than 50 percent of these materials. It also covers fossil fuels like natural gas, petroleum, and coal. The government will measure how much pollution each imported product created and charge importers accordingly. However, products from poor countries and from countries with strong environmental laws similar to America's won't face this fee. The idea is to level the playing field so American companies that follow strict pollution rules don't lose business to foreign competitors with weaker environmental standards.

The money collected from these fees gets split three ways. First, it pays for customs officials to administer the new system. Then, half of what's left goes to states as grants to help workers transition from fossil fuel jobs, assist communities dealing with climate impacts, and support areas historically burdened by pollution. The other half funds research and development of clean energy technologies. This means the bill isn't just about taxing imports—it's designed to help communities and workers adapt to a cleaner economy, particularly those in fossil fuel-dependent regions.

FAIR Transition and Competition Act

Peters, Scott H.

Fair, Affordable, Innovative, and Resilient Transition and Competition Act or the FAIR Transition and Competition Act This bill requires the Department of the Treasury, not later than July 1, 2023, and annually thereafter, to determine the domestic environmental cost incurred for industrial facilities producing steel, aluminum, cement, iron, or other products (sectors), and for the production of natural gas, petroleum, or coal (covered fuels) that are or may be used to emit greenhouse gases. By that same date, the Environmental Protection Agency must determine and publish the average greenhouse gas emissions of each sector to determine progress in reducing such emissions. The bill imposes a fee (border carbon adjustment) on importers of covered fuels and products. Treasury must provide to each state a resilient communities grant to provide job training and worker transition assistance, assist certain governmental entities and frontline communities, alleviate historical burdens imposed on communities of color and other vulnerable populations, and to assist small businesses disproportionately impacted by the border carbon adjustment fee.