1. Short title This Act may be cited as the Healthy Climate and Family Security Act of 2018 . 2. Findings The Congress finds the following: (1) Carbon dioxide and other greenhouse gas emissions continue to rise. In 2013, CO 2 levels in the atmosphere reached 400 parts per million for the first time in human history. Ten of the world’s warmest years on record have occurred since 2000, and 2016 was the warmest year ever recorded. (2) The warming of our planet has led to more frequent, dangerous and expensive extreme weather events, including heat waves, storms, fires, droughts, floods and tornadoes. (3) More than 97 percent of climate scientists agree that our planet is warming, primarily because of the extraction and burning of fossil fuels. (4) The atmosphere is a common resource that belongs equally to all. (5) Stabilizing the climate can and must be done in a way that supports vibrant economic growth and a thriving middle class. (6) Legislation to address climate change and accelerate the transition to a clean energy economy must be fair, transparent and built to last. 3. Auction of carbon permits and distribution of Healthy Climate Dividends (a) In general The Internal Revenue Code of 1986 is amended by adding at the end the following new subtitle: L Auction of Carbon Permits and Distribution of Healthy Climate Dividends Chapter 101. Cap and Dividend Program Rules. Chapter 102. Healthy Climate Dividends. Chapter 103. Border Adjustments. 101 Cap and Dividend Program Rules Sec. 9901. Definitions. Sec. 9902. Carbon permits. Sec. 9903. Auctions. Sec. 9904. Compliance obligation. Sec. 9905. Penalty for noncompliance. Sec. 9906. Carbon capture and sequestration. Sec. 9907. Trading. Sec. 9908. Banking and borrowing. 9901. Definitions For purposes of this subtitle: (1) Administrator The term Administrator means the Administrator of the Environmental Protection Agency. (2) Carbon permit The term carbon permit means a carbon permit established by the Secretary under section 9902(a). (3) Covered entity The term covered