Support a Price on Carbon

The Energy Innovation and Carbon Dividend Act (H.R. 763) was first introduced in 2018, and has been reintroduced this year in the House of Representatives. It is the result of years of organizing and advocacy from activists across the country, and represents one of the best chances available to pass bipartisan carbon pricing legislation.

 

The legislation will impose a fee of $15/ton on carbon dioxide-producing fossil fuels, and will raise the fee $10/year every year after. The money raised from the fees will be distributed evenly to every U.S. household in the form of a dividend check, making the policy revenue-neutral. In other words, the government doesn’t keep any of the money. A border adjustment will be made on imports and exports in order to ensure American competitiveness, and the E.P.A.s authority to regulate carbon dioxide will be paused for 10 years, after which time it will be reinstated if emission reductions targets are not being met.

 

Important considerations remain. While studies have found that America’s poorest 70% of households will receive more money from the rebates than they will pay in higher energy and consumer prices as a result of the fee, final bill language must ensure that these households receive their rebates often enough to offset rising costs (monthly at least). It must also ensure that those without social security numbers or TINs will still receive a dividend. Finally, carbon is an important greenhouse gas to curtail, but it is not the only one driving dangerous warming. At the very least, a final bill must make provisions for the pricing or strong regulation of methane as well as carbon dioxide.

 

You can read the full text of the Energy Innovation and Carbon Dividend Act (H.R. 763) here.

Learn more about our views on the importance of bipartisan action here.

 

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