by (2) the carbon fee rate. (c) Carbon fee rate For purposes of this section— (1) In general The carbon fee rate, with respect to any use, sale, or transfer during a calendar year, shall be— (A) in the case of calendar year 2019, $15, and (B) except as provided in paragraph (2), in the case of any calendar year thereafter— (i) the carbon fee rate in effect under this subsection for the preceding calendar year, plus (ii) $10. (2) Exceptions (A) Increased carbon fee rate after missed annual emissions reduction target In the case of any year immediately following a year for which the Secretary determines under 9903(b) that the actual emissions of greenhouse gases from covered fuels exceeded the emissions reduction target for the previous year, paragraph (1)(B)(ii) shall be applied by substituting $15 for the dollar amount otherwise in effect for the calendar year under such paragraph. (B) Cessation of carbon fee rate increase after certain emission reductions achieved In the case of any year immediately following a year for which the Secretary determines under 9903(b) that actual emissions of greenhouse gases from covered fuels is not more than 10 percent of the greenhouse gas emissions from covered fuels during the year 2016, paragraph (1)(B)(ii) shall be applied by substituting $0 for the dollar amount otherwise in effect for the calendar year under such paragraph. (3) Inflation adjustment In the case of any calendar year after 2019, each of the dollar amounts in paragraphs (1)(A), (1)(B)(ii), and (2)(A) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2018 for calendar year 2016 in subparagraph (A)(ii) thereof. (d) Exemption and refund The Secretary shall prescribe such rules as are necessary to ensure the fee imposed by this section is not imposed with respect to any nonemitting use, or any sale or transfer for a nonemitting use, including rules