Carbon taxes used to be anathema to the fossil fuel industry. But now that they are throwing coal under the electric bus, there are forces on the Left and the Right converging on new carbon tax proposals, especially the Energy Innovation and Carbon Dividend Act. We will examine it and three alternative bills in Congress below.
This bill imposes a fee on the carbon content of fuels, including crude oil, natural gas, coal, or any other product derived from those fuels that will be used so as to emit greenhouse gases into the atmosphere.
Sponsor: Rep. Deutch, Theodore E.(Introduced ...
Latest Action: House - 01/25/2019 Referred to ...
Committees: House - Ways and Means; Energy ...
The tax will rise every year. Receipts will be distributed among those hit by higher prices. The bill calls for a pause in new EPA regulations while we see how this works. There are some in the industry who would rather pay a known tax than risk unknown regulations.
The Energy Innovation and Carbon Dividend Act is designed to encourage market-driven innovation in clean energy technologies; create efficient markets, encourage competition, promote our national interests; and create a healthier, more stable, and more prosperous nation for future generations.
The devil is in the details. I can't dive into the whole text of the bill while writing daily Diaries. Let us know about those who can.
But first, a look at where we came from not so long ago.
Tax Denialism
Pros and Cons of a Carbon Tax: Key Issues
It’s a climate solution that could appeal to some liberals and conservatives. But, as always, the devil is in the details.
In mid-June 2016, the U.S. House of Representatives voted overwhelmingly to stand against future proposals for a carbon tax, even though no current bill was anywhere near getting its serious attention.
Opponents, in that symbolism-rich congressional moment, saw the importance of laying down a political marker (were, say, a future Hillary Clinton administration look to push the idea). Carbon tax supporters saw pure political theater.
There is a reason why this is called kabuki.
American Energy Alliance: 10 Reasons to Oppose a Carbon Tax
The usual excuses. Basically, it hurts the fossil fuel industry, which pretends that it hurts everybody else.
What Explains Voter Aversion to Carbon Taxes and What Can Be Done?
The usual excuses. You might even think that voters were only hearing from the fossil fuel industry.
Grover Norquist's Americans for Tax Reform: Conservative Groups Oppose A Carbon Tax
Norquist never met a tax he didn't hate. Also gun and meat taxes and every part of the Green New Deal.
Well, there was plenty more where those came from, but that was mostly then. And now,
EICD Act
Energy Innovation and Carbon Dividend Act - Citizens Climate Lobby
The majority of Americans support Congress taking action on climate change, including more than half of Republicans. The fees collected on carbon emissions will be allocated to all Americans to spend any way they choose....
CCL again: Why we Support a Price on Carbon—Write your Representative
The Energy Innovation and Carbon Dividend Act of 2019 (H.R. 763) is a bill in the United States House of Representatives that proposes a fee on carbon at the point of extraction to encourage market-driven innovation of clean energy technologies to reduce greenhouse gas emissions.
Description of the bill · Cosponsors · Reactions · Support
Nov 6, 2019 - This paper analyzes the Energy Innovation and Carbon Dividend Act (EICDA) of 2019 proposed by Congressman Ted Deutch (D-FL).
Growing public concern about the social, economic, and environmental impacts of climate change, along with pressure for lawmakers to introduce policy proposals that reduce emissions, have brought carbon taxes to the center of policy discussions on Capitol Hill. Thus far in 2019, seven different carbon tax legislative proposals have been introduced in Congress. The proposal with the most cosponsors, totaling 64 Democrats and 1 Republican as of the end of September 2019, is the Energy Innovation and Carbon Dividend Act (EICDA), introduced in February 2019 by lead sponsor Ted Deutch (D-FL). This study assesses the potential impacts of EICDA on the US energy system, environment, and economy.
Carbon Pricing Leadership: Bipartisan carbon fee and dividend bill now before US Congress
Feb 4, 2019 - The Energy Innovation and Carbon Dividend Act puts a price on carbon-emitting fuels, at the source, and delivers all revenues to households. [PDF]
Other Carbon Tax Proposals
The paper from Columbia lists these.
- The MARKET CHOICE Act proposed by Congressman Brian Fitzpatrick (R-PA) in September 2019 ("Fitzpatrick Bill")
- The American Opportunity Carbon Fee Act proposed by Senator Sheldon Whitehouse (D-RI) in April 2019 (“Whitehouse Bill”)
- The Stemming Warming and Augmenting Pay Act proposed by Congressman Francis Rooney (R-FL) in July 2019 (“Rooney Bill”)
- The Climate Action Rebate Act proposed by Senator Chris Coons (D-DE) in July 2019 (“Coons Bill”)
- The Raise Wages, Cut Carbon Act proposed by Congressman Dan Lipinksi (D-IL) in July 2019 (“Lipinski Bill”)
- The America Wins Act proposed by Congressman John Larson (D-CT) in August 2019 (“Larson Bill”)
In addition, in March 2019, Senator Chris Van Hollen (D-MD) and Congressman Don Beyer (D-VA) introduced legislation that would auction a limited number of carbon dioxide emissions permits and distribute the proceeds as an equal dividend (“Van Hollen Bill”).
I can't do them all today. We'll start with what has turned up as the more active set of proposals. If any of the others get traction, we will come back to them.
Three Carbon Tax Bills Introduced in Congress
Three carbon tax bills were introduced in Congress in the last week of July. The first, the Climate Action Rebate Act of 2019 (CAR Act), was introduced by Sen. Chris Coons (D-DE) and Sen. Dianne Feinstein (D-CA) in the Senate, and by Rep. Jimmy Panetta (D-CA) in the House. The other two bills, the Stemming Warming and Augmenting Pay Act (SWAP Act) and the Raise Wages, Cut Carbon Act of 2019 (RWCC Act), were introduced by Rep. Francis Rooney (R-FL) and Rep. Dan Lipinski (D-IL) in the House.
Sens. Coons and Feinstein, Rep. Panetta introduce bill to price carbon pollution, invest in infrastructure, R&D, and working families
The Climate Action Rebate Act will help create jobs, spur innovation in clean energy, and reduce U.S. carbon emissions by 55% within a decade.
The Climate Action Rebate Act is designed to reduce U.S. carbon emissions by 55 percent over the first 10 years, while achieving additional reductions through forward-looking investments in cleaner infrastructure andenergy research and development.
The majority of revenues received from the legislation will be returned directly to the American people in the form of a monthly dividend to households with incomes below $150,000, protecting energy consumers and low-and middle-income Americans. The remainder of the revenue will be directed toward programs that support climate-resilient infrastructure, energy innovation, and assistance for vulnerable workers and communities.
The Climate Action Rebate Act is supported by a wide range of groups including Ceres, the Environmental Defense Fund, American Council on Renewable Energy, DuPont, PG&E, Exelon, and the National Wildlife Federation.
Congressman Rooney Introduces Bill to Provide Payroll Tax Relief in Exchange for Carbon Costs
Washington, D.C. – Today, Congressman Francis Rooney introduced a carbon pricing bill with Congressman Dan Lipinski to provide tax relief for hardworking Americans while imposing the costs of carbon on the big polluters who are damaging our environment. This legislation slashes carbon emissions by approximately 42% by 2030 while using the revenue to reduce the payroll tax burden on Americans.
Congressman Rooney stated, “Those industries that choose to pollute our environment should bear the burden of cleaning it up. Putting a price on carbon will level the economic playing field in the energy sector, unlock market-driven innovation, and lead to the deployment of low, zero, and negative carbon technologies. It will help create millions of new jobs and slash U.S. carbon emissions dramatically, making it a powerful tool for curbing climate pollution.
“The transition to a cleaner economy should be cost-neutral for American families. That’s why I propose using the proceeds from a carbon fee to pay down payroll taxes, provide a social security supplement, invest in research development, and offset higher energy costs.
Payroll tax relief usually means cutting taxes and future benefits. No.
Lipinski Introduces Bipartisan Bill to Combat Climate Change and Cut Taxes
07/26/2019
WASHINGTON, D.C.--Congressman Dan Lipinski (IL-3), along with Rep. Francis Rooney (FL-19), have introduced the bipartisan Raise Wages, Cut Carbon Act of 2019 to combat climate change by instituting a carbon fee and using the revenue generated to put money back into the pockets of taxpayers. The legislation is a straightforward approach to decreasing carbon emissions from fossil fuels, while simultaneously cutting taxes for all American workers, increasing benefits for Social Security recipients, and providing certainty for businesses.
A regressive bill that does not help those workers who pay little or no income tax.
Note that many of these organizations have newsletters that you can sign up for, on climate and in some cases many other Progressive issues, as do many of the news sources used here.
COP25 Daily Update
The world plans to fix climate change with carbon credits. But do they work?
Not if the laws are deliberately written with major loopholes at the behest of fossil fuel or timber interests. This article goes into a multitude of such pitfalls.
Cop25 Bulletin: A rare press conference
In a rare press conference hosted by the government of China, a panel of experts (which didn’t include any government officials) dodged questions about whether Beijing would enhance its climate plan next year.
China’s current plan to peak emissions by 2030 and before if possible “was already made with great ambition,” they said.
China's feet need to be held to the fire over market distorting laws and regulations that continue to promote coal, and over the 300+ coal-fired plants they are building in other countries that are having trouble getting renewable energy projects financed.
COP25 Day 3: Activists call for big polluters to pay more for their damage
#KickPollutersOut
#Makethempay