H.R.1862

To cap the emissions of greenhouse gases through a requirement to purchase carbon permits, to distribute the proceeds of such purchases to eligible individuals, and for other purposes.

4/1/2009--Introduced.

Cap and Dividend Act of 2009 - Amends the Internal Revenue Code to require the Secretary of the Treasury: (1) in consultation with the Administrator of the Environmental Protection Agency (EPA), to establish a separate quantity of carbon permits for 2012 and each succeeding year in accordance with a specified emission reduction schedule that requires the quantity established for 2012 to equal the number of metric tons of carbon dioxide emitted in the United States in 2005, the quantity for 2020 to be 25% less than that amount, for 2030 to be 45% less, for 2050 to be 65% less, and for 2050 to be 85% less; and (2) to establish a system for identifying, issuing, and tracking such permits.

Requires: (1) the Secretary to conduct periodic public auctions of carbon permits to owners of covered entities (i.e., persons who make the first sale in U.S. markets of an oil, natural gas, or coal product or any other derived product for use as a combustible fuel); and (2) each such owner to surrender to the Secretary for each year beginning in 2013 a quantity of permits at least as great as the number of metric tons of carbon dioxide that the Secretary determines would be emitted by the combustion of covered fuels sold by the entity during the previous calendar year. Sets forth penalties for noncompliance.

Requires the Secretary to issue additional carbon permits equal to the number of metric tons of carbon dioxide a person safely and verifiably captures and sequesters from the combustion of covered fuels in the United States.

Authorizes permit holders to sell, exchange, or transfer permits, subject to the limitations established by the Secretary. Provides for the banking and borrowing of permits.

Establishes the Healthy Climate Trust Fund, which shall receive the proceeds from the permit auctions and noncompliance penalties, and from which annual dividends shall be paid to consumers.

Requires the Secretary to: (1) impose carbon equivalency fees on imports ofcarbon-intensive goods; and (2) make specified payments to persons exporting carbon-intensive goods produced in the United States. Terminates such fees and payments to the extent that other countries that emit greenhouse gases and produce such goods for export markets have adopted equivalent measures.

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