Polluters Pay Climate Fund Act of 2025

This bill would charge certain fossil fuel companies for their share of past carbon pollution. It divides a total of $1 trillion among companies that extracted fossil fuels or refined crude oil, based on how much their carbon emissions go over 1 billion metric tons during a covered period. The Treasury figures this using emissions tied to each company’s products and can adjust to avoid counting the same emissions twice (for example, between an extractor and a refiner).

Money is due to the Treasury by September 30, 2026, but companies can choose to pay over nine years (20% the first year, then 10% each of the next eight). If they miss a payment or shut down, the rest can become due right away. The Treasury must issue rules within 18 months of the law taking effect. Corporate groups, including related foreign companies, are treated as one payer, and all related companies can be held responsible together. The bill also states an intent to set up a Polluters Pay Climate Fund.

• Who is affected: Companies that extract fossil fuels or refine crude oil; are U.S. persons or doing business in the U.S. from enactment through December 31, 2025; and are responsible for more than 1 billion metric tons of covered carbon dioxide emissions.
• What changes: A tax equal to each company’s share of a $1 trillion total, based on emissions above 1 billion metric tons; adjustments to prevent double counting; related companies treated as one; option to pay in installments.
• When: Payment due September 30, 2026; installment payments annually after that; rules due within 18 months of enactment.