Carbon Pricing Bills in Congress

Carbon pricing bills submitted in the past five sessions of the U.S. Congress are reviewed on this page in terms of price, the rate of increase, where the fee is assessed, revenue distribution destination, border, CO2 equivalency, exemptions, notes, and CCL’s analysis and evaluation of each bill.

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CCL appreciates the contribution to the carbon pricing discussion that each of these bills provides. See CCL's Primary Ask (Leave Behind) resource page for more information about our current asks for lobby meetings.

Click the green download button below for a comparison of five key carbon pricing bills in current (117th) Congress (includes the Save our Future Act).

Also, PDF documents containing one-page analyses of the major carbon pricing bills from the 113th - 116th sessions of Congress are available to download. These may be useful as handouts to a Congressional staffer.  Click on the links to the Congressional sessions in the list below and select the green download buttons.

118th Congress

Senator Durbin: America’s Clean Future Fund Act of 2024

Status: Not yet on Congress.gov. Press release available here. 

Initial Price: $65. Start Date: Jan 1, 2026.

Rate of increase: $10 per year plus a cost of living adjustment to account for inflation.

Emissions reduction targets: 

• By 2030, 45% below 2018 levels. 
• By 2050, 100% below 2018 levels. 

Accelerator in case of missed targets: 

• 2029 - 2033: $15 instead of $10. 
• 2034 - 2043: $20 instead of $10.
• After 2043: $25 instead of $10.

Pause of increase in case of exceeded targets: 

If emissions over a preceding 3-year period are at or below 10% of 2018 emissions, and if overall emissions are below targets, then annual increase in price is $0.  

Where assessed: Upstream. Refinery for oil, any producer subject to the tax under section 4121 for coal, and any producer of natural gas from a natural gas well. Fossil fuel imports as well. Includes including any fugitive or process emissions associated with the production, proc-

essing, or transport of a covered fuel for methane. 

Revenue Destination: 

• Overall, 75% of revenues go to means-tested tax-free dividends from the America’s Clean Future Fund. A full share will go to eligible adults annually. Those making less than $150,000 per year if filing a joint tax return, or less than $75,000 per year if not filing a joint return, will get a full dividend. Above these levels, the dividend phases out with a 5% reduction in the dividend for each $1,000 increase in their adjusted gross income. 
• 15-20% goes to the Climate Change Finance Corporation (C2FC). This is a green bank which shall finance clean energy and climate change resiliency activities.
• Transition assistance for affected communities via grants to encourage employment, climate change resiliency, environmental remediation and restoration of abandoned or retired fossil fuel industry facilities. 5% of the revenues over that initial 10 year period.
• Transition assistance for farmers for the first 10 years. Roughly 5% over that period.

CO2-Eq: 100-yr Global Warming Potential. Goes after methane too. 

Border: Fossil fuels and carbon intensive goods are border adjusted. That is, imports pay a fee equivalent to the fee that would be assessed if they were manufactured in the US. Exporters of covered fuels and carbon-intensive goods from the US will receive a refund. The bill also has a provision that foreign policies (other than a carbon price) that have substantially the same effect in reducing emissions of greenhouse gases shall be treated as fees.

Refunds: The bill provides for refunds when emissions from covered fuels are sequestered in secure geologic storage, or employed in a non-emitting use. 

Rep. Carbajal: Energy Innovation and Carbon Dividend Act of 2023

Bill number: H.R.5744 (click for bill text)  Introduced on 

 

Status: Introduced by Salud Carbajal (CA-24)

Initial price: $15 per ton of CO2-eq beginning 2022.

Rate of increase: $10 annually above inflation. If emission targets aren’t met, it increases to $15 / ton of CO2e in 2023.  Fee stops increasing when emissions reach 10% of 2010 net GHG emissions.

Where assessed: Upstream.

Revenue destination: Revenue generated would be distributed evenly to citizens or lawful residents of the United States on a monthly basis. Pro Rata Adults 1 share, Children half share. Administrative costs may not exceed 2% after the first 5 years (8% years 1-5). 

CCL's take: CCL is excited to have the carbon fee and dividend style bill we have been working on for over eleven years reintroduced as the Energy Innovation and Carbon Dividend Act of 2023!

Rep. Brian Fitzpatrick: Modernizing America with Rebuilding to Kick-start the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion (MARKET CHOICE) Act  

With the introduction of the MARKET CHOICE Act (H.R.6665) in Congress, it’s instructive to compare this carbon pricing bill to the Energy Innovation and Carbon Dividend Act (H.R.5744). For convenience, let’s refer to them as the MCA and EICDA.

The EICDA was introduced on 09/27/23 by two Democrats, Salud Carbajal (D-CA-24) and Scott Peters (D-CA-50). In contrast, the MCA was introduced by Republican Brian Fitzpatrick (R-PA-1), along with Democrat Carbajal, on 12/07/23.

Both of these bills put a rising price on carbon from fossil fuels. In addition to coal, natural gas, and petroleum products, the MCA also covers a variety of industrial emissions and biomass emissions based on their life-cycle analyses. As for the price, the EICDA starts at $15 per ton of CO₂-equivalent (tCO₂e) and rises by $10 per ton each year, while the MCA starts at $35 per tCO₂e and goes up by 5% above inflation. So the EICDA starts lower but increases much faster, while the MCA starts higher but increases more slowly. For example, in 10 years, the EICDA would hit $105 while the MCA would only get to $54.

Both bills have emissions targets which, if not met, would trigger an increase in the carbon price ( $5 in the EICDA, $4 in the MCA). For the EICDA, the targets are stated as percentages of emissions reductions (from 2005 emissions) that must be met each year, culminating in 98% reduction by 2050. The MCA targets are shorter-term, with a target of 30% reduction in the initial year of 2025, and a target that’s equivalent to 40% reduction by 2035. The MCA does not include any targets beyond that. 

Both bills also include CO₂ capture, utilization, and sequestration (CCUS) refunds, and both include a carbon border adjustment mechanism (CBAM).

As for what happens to the carbon tax revenue, the EICDA distributes 100% to households as carbon dividends. The MCA takes 25% off the top to cover the CBO revenue offset (which is unnecessary in the EICDA because the household dividends are taxable), and then allocates 54% of the balance to replace federal fuel taxes that would be repealed under this legislation. The remaining 46% of net revenue is divided among eight different categories, including block grants to states for various low-income programs, climate adaptation, energy transition assistance, environmental restoration, research, and other uses. 

Finally, the MCA repeals motor vehicle and aviation fuel taxes that currently fund the Highway Trust Fund and a similar fund for airports, with those revenues being replaced by carbon tax revenue. It also bans some EPA regulations on greenhouse gas emissions but allows others. The EICDA does not include any regulatory trade-offs.

117th Congress

Rep. Deutch: Energy Innovation and Carbon Dividend Act of 2021

Bill number: H.R.2307 (click for bill text)  Introduced on April 1, 2021.

Status: Introduced by Representative Ted Deutch (FL-27) 

Original Cosponsors: See this list

Initial price: $15 per ton of CO2-eq beginning 2022.

Rate of increase: $10 annually above inflation. If emission targets aren’t met, it increases to $15 / ton of CO2e in 2023.  Fee stops increasing when emissions reach 10% of 2010 net GHG emissions.

Where assessed: Upstream.

Revenue destination: Revenue generated would be distributed evenly to citizens or lawful residents of the United States on a monthly basis. Pro Rata Adults 1 share, Children half share. Administrative costs may not exceed 2% after the first 5 years (8% years 1-5). 

CO2-eq:  This bill would also put a price on methane (CH₄) and nitrous oxide (N₂O) emissions associated with the production of coal, oil and natural gas.

Border: Fossil fuels and carbon intensive goods are border adjusted, imports pay a fee equivalent to current U.S. price and exports receive a refund.

Exemptions: Exemption and refund of fee for fuels not combusted (e.g., oil used in plastics) as well as Military and Agriculture. Fuels for military and farm use (agriculture) are exempted via refund. Refund available for when qualified carbon dioxide is captured and sequestered in a safe and permanent manner.

CCL's take: CCL is excited to have the carbon fee and dividend style bill we have been working on for over eleven years reintroduced as the Energy Innovation and Carbon Dividend Act of 2021.

Sen. Durbin: America's Clean Future Fund Act of 2021

Bill number:​ ​S.685 Introduced on March 10th, 2021.

Status:​ Introduced by Senator Durbin (IL-SR).

Initial price:​ $25 per ton of CO2-eq.

Start date:​ January 1st, 2023.

Rate of increase:​ $10/year above inflation (unless emission target is not hit, then the increase is $15/year if 2026-2030, $20/year if 2031-2040, $25/year after 2040).

Where assessed:​ Upstream.

Revenue destination:​ 75% of the revenue generated would go to rebates to American citizens, 15% to the Climate Change Finance Corporation, and 10% to transition assistance. After 10 years the percentage to transition assistance begins to decrease and the percentage of rebates to Americans and to the Climate Change Finance Corporation increases. After 15 years the breakdown is as follows and remains the same: 80% rebates to American citizens, 20% to the Climate Change Finance Corporation, and 0% to transition assistance. Dividends will be distributed evenly to citizens or lawful residents of the United States on a quarterly basis. Pro Rata Adults 1 share. Residents qualify for a quarterly dividend, provided their household incomes are no more than $75,000 (single filer) or $150,000 (joint filer). The dividend begins to phase out above this threshold (decreasing 5% per $1,000 over the threshold).

CO2-eq:​ Includes non-CO2 GHGs and measures by their global warming potential.

Border:​ Fossil fuels and carbon intensive goods are border adjusted; imports pay a fee equivalent. U.S. exporters of covered fuels and carbon-intensive goods will receive a refund.

Refunds:​ Refunds will be given for carbon capture, sequestration and utilization so long as they do not violate air and water regulations or harm environmental justice communities. 

CCL's take:​ This bill contains many great ideas for a national carbon pricing program and will add to and enhance the ongoing national dialogue on a carbon price. For instance, it is novel to have a delayed implementation of the carbon fee and a differential ratchet for the price increase depending on the year. These innovations enrich the debate and make it more likely that a strong carbon fee policy passes the U.S. Congress. It is exciting to see a carbon pricing bill introduced by Senator Durbin, one of the highest ranking Democrats in the Senate. In March 2021, CCL volunteers asked Democratic Senators to co-sponsor this bill.

Rep. Marie Newman: America's Clean Future Fund Act of 2021

Bill number: H.R. 2451  Introduced on April 12, 2021.

Status: Introduced by Representative Marie Newman (IL-03) 

Original Cosponsors:  Rep. Nikema Williams(GA-05), Rep. Jahana Hayes (CT-05), Rep. Juan Vargas (CA-51), Rep. Salud O. Carbajal (CA-24)

Bill text the same as Sen. Durbin: America's Clean Future Fund Act of 2021
 

Rep. Brian Fitzpatrick: Modernizing America with Rebuilding to Kick-start the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion (MARKET CHOICE) Act 

Bill number: H.R.3039, Introduced on May, 7 2021. 

Status: Introduced by Rep. Brian Fitzpatrick (R-PA-01) and Rep. Salud Carbajal (D-CA-24).

Referred to the following House committees: Ways and Means, Energy and Commerce, Natural Resources, Education and Labor, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture.

Initial Price: Would amend tax code to add tax equal to $35 / metric ton of CO2eq in place of the federal gas tax starting in 2023. Rate of increase: 5% per year plus inflation. There is a $4 per ton increase if emissions reductions are behind goals as reported every 2 years. 

Where assessed: Coal mine mouth, refinery output, gas processing plant, owner operator of certain facilities for process emissions (steel, cement, aluminum, other 19 listed in bill), owner operator of a facility that imports or makes certain products (list in bill), owner/operator of biomass facilities. 

Revenue destination: 75% to Rebuilding Infrastructure and Solutions for the Environment (RISE) Trust Fund, 25% to general fund. From the RISE trust fund, 70% goes to the Highway Trust Fund. Additional 10% would go to states in the form of grants for low income households. Funding will also go to various R&D efforts (ARPAe, CCS, battery storage, direct air capture), conservation programs, and for a fund to provide assistance to any energy workers that may be displaced. Details of exact breakdown in bill language. 

Border: Would impose border tax adjustment on imported goods in amounts equal to increased costs paid by comparable US products. Exporters would receive a rebate equal to the tax. Includes provision for Presidential discretion to exempt an industry if program would not be in national interest, economic interest, or environmental interest of US.

CO2-eq: Other greenhouse gases included. 

Exemptions: Refund for CCS and non-emissive uses of taxed fuels. Owners or operators of facilities in states that require payment for emissions are eligible for a declining credit for the taxes or fees paid under state programs (credit starts at 100%, 80% at year 2, and declines to 0% by year 5)

Additional Information: The MCA would create a 12-year moratorium on implementation or enforcement of regulations on stationary sources under the Clean Air Act related to emissions of greenhouse gas subject to taxation. The continuation of the moratorium is contingent on the emissions reductions goals as stated in the MCA being met. Moratorium starts upon enactment. In 2031 if emissions goals are met, the moratorium continues and terminates in 2035. The temporary moratorium does not affect EPA’s authority to promulgate regulations to reduce methane emissions or emissions from automobiles (or the ability of states to set emissions standards). The bill would also create a bipartisan commission on climate called “National Climate Commission” that, in addition to producing comprehensive reviews of actions and policies available to reduce greenhouse gas emissions, conducts a review of whether existing policies and programs are on pace to achieving emissions reductions goals.

CCL’s take: Representative Brian Fitzpatrick’s Market Choice Act would put a price on carbon, which is one of the most effective climate solutions available to us. At Citizens’ Climate Lobby we share the desire to see American jobs grow and carbon emissions drop. This bill also joins other carbon pricing bills in having bipartisan support.
 

Rep. Larson: America Wins Act of 2021 

Bill number: H.R. 3311, Introduced on May 18th, 2021. 

Status: Introduced by Representative Larson (CT-01). 

Initial price: $59 per ton of CO2 in 2022. 

Rate of increase: 6% annually above inflation each year. 

Where assessed: Tax on the manufacturer, producer, or importer. 

Revenue destination: Establishes a Build America Trust Fund. During the years 2022-2031, $1.2 trillion will be invested in various programs such as infrastructure, healthcare, transition assistance and research and development. Starting in 2022 and every year following 12.5% of revenue is made available for the Energy Refund Program for purposes of consumer relief, lawful US residents of low income (150% of poverty line) will be eligible for direct monthly payment. The remaining revenue will be available for consumer tax rebates available to households with incomes up to 400% of poverty line. 

CO2-eq: Does not include CO2- eq. 

Border: A carbon equivalency fee will be imposed on imports of carbon-intensive goods to ensure that foreign competitors play on a level playing field with domestic firms. This section will not apply to imports from countries with equivalent greenhouse gas reduction measures in place or in the event of an international agreement requiring countries to put in place equivalent greenhouse gas reduction measures. 

Exemptions: Refund available for non-emitting uses of fossil fuels (feedstock, carbon capture and sequestration) and for previously taxed carbon substances used to make another carbon substance. Exemption for exports as well. 

CCL's take: CCL is eager to see another carbon pricing bill re-introduced in the 117th Congress. We like the provision of revenue to low-income families as CCL shares the top priorities of cutting emissions while protecting low-income families. This bill has the highest starting price of any bill introduced so far this year, and so support for low-income households will be important. We are thrilled to see that the America Wins Act back in the national discussion for how to address climate.  

Sens. Whitehouse-Schatz: Save Our Future Act 2021 

Bill number: S.2085 (click here for the legislative text) (click here for a CCL Community Bulletin on the provisions to respect environmental justice concerns)(click here for a section-by-section analysis from Sen. Whitehouse's office). Introduced on June 16, 2021.

Status: Introduced by Senator Whitehouse (RI) with Senator Schatz (HI). 

Initial price and rate of increase: $54 per ton of CO2-eq in 2023, increasing by 6% annually above inflation. $6.30/pound of Nitrogen oxides (NOx), $38.90/pound of  fine particulate matter (PM2.5), and $18.00/pound of Sulfur Dioxide (SO2). All co-pollutant prices will rise with the rate of inflation 

Where assessed: Upstream to midstream.

Revenue destination: 

1. Fee revenue rebates to individuals. Gives carbon fee offset credit against the tax imposed by this subtitle for the taxable year, $800 per year per adult; $300 per year per dependent, indexed to inflation 
2. State-based cost mitigation grant program. Deliver at least $10 billion annually in grants to states to help low-income and rural households and workers transitioning to new industries.
3. Assistance to energy veterans and their communities. 
   1. Provide Social Security and energy veterans’ program beneficiaries and other retired and disabled Americans with an inflation-adjusted annual benefit. 
   2. Allow roughly $110 billion over 10 years to help coal workers and communities through programs including 5 years of full wage, pension, and health care replacement, environmental remediation, and economic development.
4. Assistance to environmental justice communities. Allow roughly $255 billion over 10 years (plus fees collected from co-pollutants) to help environmental justice communities in the form of investments in programs such as energy affordability, pollution reduction in EJ communities, workforce development and career training, and Native and Tribal.

CO2-eq: Includes non-CO2 GHGs (fluorinated gases and process emissions) and places the fee on them immediately according to their global warming potential (GWP). Prices methane based on the methane and other associated emissions reported under an expanded Greenhouse Gas Reporting Program. Fluorinated gases produced in the US or imported are taxed at a fee that equals the applicable percentage (table included in bill) of CO2 equivalent.

Border: Fossil fuels are border adjusted. Exporters of energy-intensive manufactured goods would receive a refund.  Importers of energy-intensive manufactured goods would pay an equivalency fee (determinations of fee outlined in the bill). 

Exemptions: Refund available for sequestered carbon and non-emitting uses of fossil fuels. Exemption for exports of fluorinated greenhouse gases produced or imported into the US if they are in equipment precharged or in closed cell forms. Refunds are also given for entities that use fluorinated greenhouse gases so that it cannot be emitted later or that destroys the gas without emissions.

CCL's take: Sens. Whitehouse and Schatz have been steadfast in their support for aggressive climate action, and Citizens' Climate Lobby applauds their introduction of this legislation. The Save Our Future Act would place an ambitious price on carbon to reduce America's emissions, but it doesn't stop there. This legislation would also address long-standing environmental justice concerns by directly pricing emissions of fossil fuel co-pollutants in frontline communities, and it would invest in coal communities to support them through the transition to a clean energy economy. Plus, it would protect American households by providing regular rebates and funding for further emissions reductions through weatherization, EV credits, and more. This creative, inclusive policy shows that carbon pricing can be a win for the climate and a win for Americans who need one the most.

 

These two one-pagers below provide additional information on the Environmental Justice and Energy Veteran provisions of The Save Our Future Act of 2021.

116th Congress

Rep. Deutch: Energy Innovation and Carbon Dividend Act of 2019

Bill number: H.R.763. Introduced on January 24, 2019.

Status: Introduced by Representatives Ted Deutch (FL-27), Francis Rooney (FL-19) Daniel Lipinski (IL-3), Charlie Crist (FL-13) Scott Peters (CA-52), Anna Rep. Eshoo (CA-18), and Judy Chu (CA-27).

Initial price: $15 per ton of CO2-eq in 2019.

Rate of increase: $10 annually above inflation unless emissions targets for previous year have not been met in which case the increase is $15 for that year. Fee stops increasing when emissions reach 10% of 2016 levels.

Where assessed: Upstream.

Revenue destination: Revenue generated would distributed evenly to citizens or lawful resident of the United States on a monthly basis. Pro Rata Adults 1 share, Children half share. Administrative costs may not exceed 2% after the first 5 years (8% years 1-5). 

CO2-eq: Includes non-CO2 GHGs and places the fee according to their global warming potential (GWP). A fee is also levied on the GHG potential of certain fluorinated gases at 10% of carbon fee rate. 

Border: Fossil fuels and carbon intensive goods are border adjusted, imports pay a fee equivalent to current U.S. price and exports receive a refund.

Exemptions: Exemption and refund of fee for fuels not combusted (e.g., oil used in plastics) as well as Military and Agriculture. Fuels for military and farm use are exempted via refund. Refund available for when qualified carbon dioxide is captured and sequestered in a safe and permanent manner.

Regulatory Adjustment: To avoid imposing both taxation and regulation of greenhouse gases, this bill adjusts certain existing greenhouse gas regulations which would become redundant, conflicting, or duplicative by enactment of this policy. 

CCL's take: CCL is excited to have the carbon fee and dividend style bill we have been working on for over eight years introduced as the Energy Innovation and Carbon Dividend Act. 

Sen. Van Hollen: Healthy Climate and Family Security Act of 2019

Bill number: S. 940. Introduced on 3/28/2019

Status: Introduced, referred to the Senate Finance Committee.

Initial prices: Set at auction, beginning in 2020. The Secretary of the Treasury, in consultation with the EPA Administrator, will determine the initial quantity of carbon permits to be auctioned. At least 4 auctions per year. Permits turned in at end of year. Secretary has the authority to set a minimum auction price.

Decrease in cap: Cap begins in 2020 and requires CO2 emissions reductions of 35% by 2025, 50% by 2030, and 80% by 2040 below 2005 levels.

Where assessed: Midstream to upstream (coal mine, oil refinery, entity delivering natural gas to end user, importer).

Revenue destination: Deposits carbon permit auction proceeds into a Healthy Climate Trust Fund at the Treasury and instructs the Treasury to distribute auction proceeds quarterly on a pro-rata basis in the form of a Healthy Climate Dividend to every lawful resident of the United States with a valid Social Security number. No mention of minors or children. Dividends excluded from gross income.

The cap: Entities that fail to obtain a permit in time will have to pay 3x the previous year’s average permit price. If price increases more than 50% above previous 2 years’ average, can issue extra permits from permit reserve or from 2030-2040, reducing cap in each of these years by an equal percentage.

Trading: Lawful holder of a permit may sell, exchange, or transfer the carbon permit to a covered entity consistent with the limits established by the Secretary. Establishment of a system for issuing, recording, holding, and tracking carbon permits.

Border: Includes border adjustment provisions to ensure U.S. manufacturers are not disadvantaged when competing against companies operating in countries without equivalent greenhouse gas emissions reduction requirements.

CO2-eq: Directs study, due in 2 years, to investigate non-CO2 GHG emission. Emissions related to animal or food production explicitly excluded. Uses regulations to attack other GHGs, beginning 4 years after implementation (25% of GHGs covered), and no later than 10 years 100% of GHGs have regulations.

Exemptions: Non-emitting uses, “safe and verifiable” carbon capture and sequestration.

CCL’s Take: We full-heartedly applaud the revenue neutrality of this bill, as well as the decision to return the revenue as a dividend. Furthermore, the structure of the cap in this 28-page bill appears both elegant and effective. However, CCL chose in 2009 to support a fee instead of a cap-and-trade program for reasons that are as true today as they were then. Cap-and-trade is our second-favorite solution, but we continue to believe a straightforward rising fee is a more efficient mechanism for reducing emissions than a declining cap, and that it has a better chance of winning bipartisan support.

Rep. Don Beyer: Healthy Climate and Family Security Act of 2019

Bill number: H.R. 1960. Introduced on 3/28/2019

Bill text the same as Van Hollen Healthy Climate and Family Security Act of 2019

Sens. Whitehouse-Schatz-Heinrich-Gillibrand: American Opportunity Carbon Fee Act of 2019

Bill number: S.1128. Introduced on April 10, 2019.

Status: Introduced by Senator Whitehouse (RI) with Senator Schatz (HI), Senator Heinrich (NM), and Senator Gillibrand (NY) as original co-sponsors.

Initial price: $52 per ton of CO2-eq in 2020.

Rate of increase: 6% annually above inflation until emissions goal (i.e., 80% of 2005 emissions) is reached. Then, increases only with inflation.

Where assessed: Upstream to midstream.

Revenue destination: Revenue generated would be used to: 

1. Give carbon fee offset credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of— 6.2 percent of the earned income of the taxpayer, or $900. 
2. Provide Social Security and veterans’ program beneficiaries and other retired and disabled Americans with an inflation-adjusted annual benefit 
3. Deliver at least $10 billion annually in grants to states to help low-income and rural households and workers transitioning to new industries.

CO2-eq: Includes non-CO2 GHGs and places the fee on them immediately according to their global warming potential (GWP). Fluorinated gases produced in the US or imported are taxed at a fee that equals the applicable percentage (table included in bill) of CO2 equivalent multiplied by the same rate for CO2.

Border: Fossil fuels are border adjusted, as are other goods which the Secretary of the Treasury has determined are at a competitive disadvantage.

Exemptions: Refund available for sequestered carbon and non-emitting uses of fossil fuels. Exemption for exports of fluorinated greenhouse gases produced or imported into the US if they are in equipment precharged or in closed cell forms. Refunds are also given for entities that use fluorinated greenhouse gases so that it cannot be emitted later or that destroys the gas without emissions.

CCL's take: This bill is aimed very clearly at attracting Republican cosponsors, and for that the Senator sponsors are to be roundly applauded and thanked. This bill also pioneers new ground in just how a dividend could be efficiently returned to households at low cost. We fear the initial price is too high, and the rate of increase is too low (even though it has been raised since the last introduction). Of course, we prefer a straightforward and equal 100% dividend of net revenue to households.

Rep. Brian Fitzpatrick: Modernizing America with Rebuilding to Kick-start the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion (MARKET CHOICE) Act 

Bill number: H.R. 4520, Introduced on September, 26 2019. 

Status: Introduced with three original co-sponsors, Rep. Scott Peters (D-CA-52), Rep. Francis Rooney (R-FL-19), and Rep. Salud Carbajal (D-CA-24).

Referred to the following House committees: Ways and Means, Energy and Commerce, Natural Resources, Education and Labor, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture

Initial Price: Would amend tax code to add tax equal to $35 / metric ton of CO2eq in place of the federal gas tax starting in 2021. Rate of increase: 5% per year plus inflation. There is a $4 per ton increase if emissions reductions are behind goals as reported every 2 years. 

Where assessed: coal mine mouth, refinery output, gas processing plant, owner operator of certain facilities for process emissions (steel, cement, aluminum, other 19 listed in bill), owner operator of a facility that imports or makes certain products (list in bill), owner/operator of biomass facilities. 

Revenue destination: 75% to Rebuilding Infrastructure and Solutions for the Environment (RISE) trust fund, 25% to general fund. From RISE trust fund, 70% to go to Highway Trust Fund. Additional 10% would go to states in the form of grants for low income households. Funding will also go to various R&D efforts (ARPAe, CCS, battery storage, direct air capture) and for a fund to provide assistance to any energy workers that may be displaced. Details of exact breakdown in bill language. 

Border: Would impose border tax adjustment on imported goods in amount equal to increased costs paid by comparable US products. Exporters would receive a rebate equal to the tax. Includes provision for Presidential discretion to exempt an industry if program would not be in national interest, economic interest, or environmental interest of US. CO2-eq: Other greenhouse gases included. 

Exemptions: Refund for CCS and non-emissive uses of taxed fuels. Owners or operators of facilities in states that require payment for emissions are eligible for a declining credit for the taxes or fees paid under state programs (credit starts at 100%, 80% at year 2, and declines to 0% by year 5)

Extras: The MCA would create a 12-year moratorium on implementation or enforcement of regulations on stationary sources under the Clean Air Act related to emissions of greenhouse gas subject to taxation. The continuation of the moratorium is contingent on the emissions reductions goals as stated in the MCA being met. Moratorium starts upon enactment. In 2029 if emissions goals are met, moratorium continues and terminates in 2033. The temporary moratorium does not affect EPA’s authority to promulgate regulations to reduce methane emissions or emissions from automobiles (or the ability of states to set emissions standards). Would also create a bipartisan commission on climate called “National Climate Commission” that, in addition to producing comprehensive reviews of actions and policies available to reduce greenhouse gas emissions, conducts a review of whether existing policies and programs are on pace to achieving emissions reductions goals.

CCL’s take: Representative Brian Fitzpatrick’s Market Choice Act would put a price on carbon, which is one of the most effective climate solutions available to us. At Citizens’ Climate Lobby we share the desire to see American jobs grow and carbon emissions drop. This bill joins three other carbon pricing bills as having bipartisan support, of which we are most excited about the Energy Innovation Act. 

Sen. Durbin: America's Clean Future Fund Act of 2020

Bill number: S. 4484, Introduced on August 6th, 2020.

Status: Introduced by Senator Durbin (ILSR).

Initial price: $25 per ton of CO2-eq.

Start date: January 1st, 2022, unless unemployment in the U.S. is above 5%. 

Rate of increase:  $10/year above inflation (unless emission target is not hit, then the increase is $15/year if 2025-2030, $20/year if 2031-2040, $25/year after 2040). 

Where assessed: Upstream.

Revenue destination: 75% of the revenue generated would go to rebates to American citizens, 15% to the Climate Change Finance Corporation, and 10% to transition assistance. After 10 years the percentage to transition assistance begins to decrease and the percentage to rebates to Americans and the Climate Change Finance Corporation slowly increase. After 15 years the breakdown is as follows and remains the same: 80% rebates to American citizens, 20% to the Climate Change Finance Corporation, and 0% to transition assistance. Dividends will be distributed evenly to citizens or lawful residents of the United States on a monthly basis. Pro Rata Adults 1 share, Children half share. Residents qualify for a monthly dividend, provided their household incomes are no more than $75,000 (single filer) or $150,000 (joint filer). The dividend begins to phase out above this threshold (decreasing 5% per $1,000 over the threshold).

CO2-eq: Includes non-CO2 GHGs and measures by their global warming potential. 

Border: Fossil fuels and carbon intensive goods are border adjusted, imports pay a fee equivalent to current US price and exports receive a refund.

Refunds: Refunds will be given for carbon capture, sequestration and utilization.

CCL's take: This bill contains many great ideas for a national carbon pricing program and will add to and enhance the ongoing national dialogue on a carbon price. For instance, it is novel to link a delay of implementation to the employment rate, and to have a differential ratchet for the price increase depending on the year. These innovations enrich the debate, and make it more likely a strong carbon fee policy passes the US Congress. It is exciting to see a carbon pricing bill introduced by Senator Durbin, one of the highest ranking Democrats in the Senate. 

Rep. McNerney: Consumers REBATE Act of 2020

Bill number: H.R. 8175. Introduced on September 4th, 2020.

Status: Introduced by Representative Jerry McNerny (D-CA-9).

Initial price: $25 per metric ton of carbon dioxide content of the life-cycle emissions from the taxable carbon substance (coal, oil, natural gas).

Rate of increase: $10 per year. The fee is brought down to $0 for 4 years if the emission benchmarks are being met and is reinstated if the benchmark is no longer being met. 

Where assessed: Upstream: mine, wellhead, port of entry. 

Revenue destination: The amount necessary to offset a reduction in the rate of individual income tax by 1% in each tax bracket. Of the remaining funds, 20% goes to transition assistance, research and development, rural energy assistance, and other programs. The remaining 80% goes to quarterly citizen rebates.

Border: Fossil fuels and carbon intensive goods are border adjusted, imports pay a fee equivalent to current US price and exports receive a refund.

CCL's take: We applaud the efforts of Congressman McNerney to continue the conversation on carbon pricing. This bill brings new ideas such as the small income tax offset and intermittent pauses upon meeting benchmarks. CCL prefers a steadily increasing fee until emissions are at or below 10% of 2016 emission levels and that revenue is distributed entirely back American households through a monthly dividend for the sake of transparency and protecting low income households, but we welcome the growing conversation around different carbon pricing options. 

2019 Comparison of Carbon Pricing Bills in Congress

Click here for Slides & Video from the August Legislative Update Webinar (7.30.19)

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