Treatment of certain facilities relating to pollution fees

(a) In general The Commissioner of U.S. Customs and Border Protection and the Administrator of the Environmental Protection Agency shall jointly develop a process under a facility located in a foreign country may apply to have products produced at the facility be treated at a pollution intensity specific to the facility (in this section referred to as facility-specific treatment) instead of the pollution intensity for the country. (b) Eligibility requirements To be eligible for facility-specific treatment under subsection (a), a facility is required to— (1) be placed in service after the date of the enactment of this Act; (2) be— (A) owned or operated by a United States entity; or (B) located in a country— (i) with which the United States has entered into an international partnership agreement under this title; or (ii) with which the United States has a free trade agreement in effect; (3) comply with procedures to allow for ongoing verification of direct emissions by United States officials or their designees, including requirements that the facility— (A) deploy pollution monitoring equipment able to report in real time the levels of pollution emitted by the facility; (B) provide access to real-time pollution monitoring data; (C) in the absence of pollution monitoring equipment, disclose— (i) the volume and type of fuels consumed within the facility for the production of each covered product; (ii) emissions associated with any fuel combustion within the facility for the production of each covered product, including for industrial processes and any electricity, heat, or steam production; and (iii) all emissions associated with the chemical and physical transformation of raw materials within the facility for the production of each covered product; and (D) allow for spot inspections to ensure compliance with the requirements of this subsection; (4) account for the indirect emissions from the production of electricity, heating, and cooling that is produced outside the facility and consumed in the production of a covered product; (5) account for the emissions associated with the manufacture of input materials or precursors that are consumed in the production of a covered product; (6) disclose the volume and value of all covered products produced in the facility; (7) for facilities that manufacture a mix of covered products and products that are not covered products, disclose the fraction of production of covered products as a share of total output volume and value; and (8) identify the covered entity with respect to covered products produced at the facility for which the covered entity is not the owner of the facility. (c) Reconsideration of determinations of pollution intensity The Commissioner of U.S. Customs and Border Protection and the Administrator of the Environmental Protection Agency may establish a process under which a United States entity a subsidiary of which owns or operates a facility granted facility-specific treatment under subsection (a) may petition for reconsideration of the determination of the pollution intensity specific to the facility. (d) Application of variable charge A product produced by a facility granted facility-specific treatment under subsection (a) and imported into the United States shall be subject to the variable charge determined under section 4693(a) of the Internal Revenue Code of 1986, as added by title I, aligned with the pollution intensity difference of a product produced by the facility and the baseline pollution intensity. (e) Ineligibility of facilities in or owned by nonmarket economy countries A facility is not eligible for facility-specific treatment under subsection (a) if— (1) the facility— (A) is located in a nonmarket economy country; and (B) (i) is owned, partially owned, or operated by the government of the country or an entity owned or controlled by that government; or (ii) has received financing, including in the form of a tax credit or a limit on tax liability, to operate the facility by the government of the country or an entity owned or controlled by that government; or (2) the facility is owned, partially owned, or operated by— (A) an entity owned or controlled by the government of a nonmarket economy country, without regard to whether the facilitated is located in such a country; or (B) a foreign entity of concern. (f) Termination of facility-Specific treatment The eligibility of a facility for facility-specific treatment under subsection (a) may be terminated at the sole discretion of the United States if the facility fails to satisfy any of the requirements under subsection (b) or becomes ineligible under subsection (e). (g) Confidentiality of information Any information or data provided to the Commissioner of U.S. Customs and Border Protection or the Administrator of the Environmental Protection Agency pursuant to subsection (b) relating to operational practices or manufacturing processes of a facility seeking facility-specific treatment under subsection (a), may not be publicly disclosed, unless such information or data is otherwise publicly available.