Market Choice and America’s Clean Future Fund Acts reintroduced
A couple of carbon pricing bills have been reintroduced in the current session of Congress.
The MARKET CHOICE Act was reintroduced in May by Fitzpatrick and Carbajal. This bill would eliminate federal gas and diesel taxes and replace them with a carbon price starting at $40 per ton and rising 5% per year plus inflation. They describe the revenue use as:
The revenue is deposited into a new Rebuilding Infrastructure and Solutions for the Environment (RISE) Trust Fund, supporting transformative investments in clean infrastructure, transportation, energy innovation, and climate resilience, and establishes a bipartisan National Climate Commission to track progress, ensure transparency, and guide policy using science and data.
And last week, Senator Durbin reintroduced his America's Clean Future Fund Act. This bill would implement a carbon price starting at $75 per ton, rising at $10 per ton per year plus inflation. It includes a partial dividend, with 75% of revenues directly rebated to low- and middle-income individuals quarterly. The rest of the revenue would be used for a variety of grants and programs that you can read about in the link above.
CCL has endorsed both bills in every session of Congress when they've been (re)introduced, including the current session (as noted on the pages linked above). But the sponsors recognize that the bills aren't going to advance in the current session of Congress; they're just marker/messaging bills to keep the notion of carbon pricing alive. And neither is exactly what CCL would like to see in a carbon pricing bill, although there are aspects that we like and we appreciate their introductions, hence our endorsement. But as a result, we won't be engaging in any additional actions related to these bills.
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