The Details Of The Text

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This training dives into the actual legislative text of the monumental Energy Innovation and Carbon Dividend Act for all CCL volunteers to explore key questions and what the specific provisions of the text says.
 

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Interpreting The Text Of The Legislation is part of the Energy Innovation Act topic.
TOC and Guide Section
 
What is the carbon fee rate?

Section 9902. (c), p. 9, line 10:

‘‘(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, the carbon fee rate in effect under this subsection for the preceding calendar year, plus $10."

When would the fee rate escalate?

Section 9902. (c), p. 9, line 23: -
‘‘(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.” 

emissions-reduction-target-table-2019

Emissions Reduction Target Table - Section 9903(a)(2), p. 13

When will the fee stop rising?

 Section 9902. (c), p. 10, line 9: -
‘‘(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 18 substituting ‘$0’ for the dollar amount otherwise in effect for the calendar year under such paragraph.”


When would the fee stop being paid?

Section 9905. p. 14, line 15:

 “DECOMMISSIONING OF CARBON FEE.

‘‘(a) IN GENERAL .—At such time that—

‘‘(1) 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, and (2) the monthly carbon dividend payable to an adult eligible individual has been less than $20 for 3 consecutive years."

Where will the fee be assessed?

Section 9907. (b)(1), p. 14, line 15:

‘‘(1) the identification of an effective point in the production, distribution, or use of a covered fuel or fluorinated greenhouse gas for collecting such carbon fee or fluorinated greenhouse gas fee, in such a manner so as to minimize administrative burden and maximize the extent to which full fuel cycle greenhouse gas emissions from covered fuels or fluorinated greenhouse gases have the carbon fee or fluorinated greenhouse gas fee levied upon them."

Why is there a carbon border adjustment?

Section 9908. (b), p. 20, line 14:

‘‘(b) PURPOSE .—The purpose of the carbon border fee adjustment is to protect animal, plant, and human life and health, to conserve exhaustible natural resources by preventing carbon leakage, and to facilitate the creation of international agreements."

How expensive will the program be?

Section 9512. (c), p. 32, line 3: 

‘(1) ADMINISTRATIVE EXPENSES.—So much of the expenses necessary to administer the Carbon Dividend Trust Fund for each year, as does not exceed—

‘‘(A) in the case of the first 5 calendar years ending after the date of the enactment of this section, the administrative expenses for any year may not exceed 8 percent of amounts appropriated to the Carbon Dividend Trust Fund during such year, and ‘(B) in the case of any calendar year thereafter, 2 percent of the 5-year rolling average of the amounts appropriated to the Carbon Dividend Trust Fund.”

Who will receive the dividends?

Section 9512. (c)(3), p. 33 - line 19:

‘‘(C) ELIGIBLE INDIVIDUAL .—The ‘eligible individual’ means, with respect to any month, any natural living person who has a valid Social Security number or taxpayer identification number and is a citizen or lawful resident of the United States (other than any individual who is a citizen of any possession of the United States and whose bona fide residence is outside of the United States). The Secretary is authorized to verify an individual’s eligibility to receive a carbon dividend payment."

What about other social safety net programs?

Section 9512(c)(3), p. 34, line 8:

‘‘(E) FEDERAL PROGRAMS AND FEDERAL ASSISTED PROGRAMS —The carbon dividend amount received by any individual shall not be taken into account as income and shall not be taken into account as resources for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds."

Which regulations are still allowed and preserved?

Section 330. (c), p. 41 - line 9: AUTHORIZED REGULATION.
"—Notwithstanding subsections (a) and (b), nothing in this section limits the Administrator’s authority pursuant to any other provision of this Act—

(1) to limit the emission of any greenhouse gas because of any adverse impact on health or welfare other than its greenhouse gas effects;

(2) in limiting emissions as described in paragraph (1), to consider the collateral benefits of limiting the emissions because of greenhouse gas effects;

(3) to limit the emission of black carbon or any other pollutant that is not a greenhouse gas that the Administrator determines by rule has heat- trapping properties; or

(4) to take any action with respect to any greenhouse gas other than limiting its emission, including—

(A) monitoring, reporting, and record-keeping requirements; (B) conducting or supporting investigations; and (C) information collection."

What about vehicle standards?

Section 330(b) New Motor Vehicles & New Motor Vehicle Engines. p. 45 - line 24:
"(e)  Notwithstanding subsections (a) and (b) of section 330, the Administrator may—

(A) limit the emission of any greenhouse gas (as defined in section 9901 of the Internal Revenue Code of 1986) on the basis of the emission’s greenhouse gas effects (as defined in section 9901 of the Internal Revenue Code of 1986) from any class or classes of new motor vehicles or new motor vehicle engines subject to regulation under subsection (a)(1); and ‘‘(B) grant a waiver under section 209(b)(1) for standards for the control of greenhouse gas emissions.’’

What rights do states maintain?

Section 11. p. 48 - line 8:

SEC. 11. NO PREEMPTION OF STATE LAW.

"Nothing in this legislation shall preempt or supersede, or be interpreted to preempt or supersede, any State law or regulation."

Length
Press play to start the video (41m 18s)
https://vimeo.com/album/5695694
Video Outline
To skip ahead to a specific section go to the time indicated in parenthesis.

Section 1: Legislation Background
(2:30)

Section 2: Findings & Context
(5:11)

Section 3: Carbon Dividends & Components
(6:13)

Section 4: Carbon Dividend Trust Fund
(20:54)

Sections 6 & 7: National Academy Review & Biomass Study
(29:15)

Section 8: Adjustments to Duplicative GHG Regulations
(30:53)

Section 11: No Preemption of State Law
(37:42)

Instructor(s)

Dr. Danny Richter

Downloads

Download PowerPoint or Google Slides presentation.

Download the video.
Audio length
Press play to start the audio (41m 18s)
Audio embed code
Audio Outline
To skip ahead to a specific section go to the time indicated in parenthesis.

Section 1: Legislation Background
(2:30)

Section 2: Findings & Context
(5:11)

Section 3: Carbon Dividends & Components
(6:13)

Section 4: Carbon Dividend Trust Fund
(20:54)

Sections 6 & 7: National Academy Review & Biomass Study
(29:15)

Section 8: Adjustments to Duplicative GHG Regulations
(30:53)

Section 11: No Preemption of State Law
(37:42)

Instructor(s)

Danny Richter

Downloads
Discussion Topic
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Category
Training
Topics
Climate Policy
Format
Audio / Video, Presentation
File Type
Google Slides, PowerPoint (.pptx)
Training Resources
Congress.gov H.R. 763 Text

See all resources associated with Energy Innovation Act.