H.R. 6787 — Clean Competition Act

This section adds a new subchapter E, titled "Carbon Intensity Charge" (secs. 4691-4695), to Chapter 38 of the Internal Revenue Code of 1986. Sec. 4691(a) requires any covered entity, not later than June 30, 2026, and annually thereafter, to report for each eligible facility operated by such entity: (1) information required under the Greenhouse Gas Reporting Program for the preceding calendar year; (2) total electricity used at such facility during the preceding year, including whether grid- or dedicated-source provided, power purchase agreement terms, and associated emissions for non-grid electricity (if not reported under (1)); (3) total relevant quantity of each covered primary good produced at such facility during the preceding year; and (4) other information necessary for administering carbon intensity calculations. Sec. 4691(b) defines carbon intensity for an eligible facility as covered emissions divided by the total relevant quantity of covered primary goods produced there in the preceding calendar year. It defines carbon intensity for a covered national industry as aggregate covered emissions from all eligible facilities in that industry divided by aggregate production of covered primary goods in that industry. Covered national industries are initially determined using Census Bureau concordance tables linking Harmonized Tariff System classifications to North American Industry Classification System codes; the Secretary of the Treasury (in coordination with others) may adjust inclusions/exclusions to ensure fair comparisons, comprehensive emissions coverage, and single-industry assignment per good, treating excluded facilities as outside any industry. A covered entity may petition to exclude one or more covered primary goods from an existing covered national industry and establish a new one if production processes are substantially different, goods have distinct irreplaceable properties, and their carbon intensity is at least 25% greater than other goods in the industry.