Introduction To The Energy Innovation Act

The Energy Innovation and Carbon Dividend Act (H.R.5744) of 2023, a bill which aligns closely with CCL’s carbon pricing principles, has been reintroduced in Congress. CCL fully supports this bill and is working diligently toward its passage. The guide below provides a walk-through of the components of the legislation, and you can also choose to watch or listen for an introduction behind this legislation.

About the Legislation

The Energy Innovation and Carbon Dividend Act will help reduce America’s carbon pollution to net zero by 2050. It puts a fee on carbon pollution, creating a level playing field for clean energy. The money collected from fossil fuel companies goes to Americans in the form of a monthly 'carbon cash back' payment so that everyone can afford the transition.

• See Congress.gov (H.R.5744) site
• Rep. Carbajal's Press Conference
• Sponsors List
  • Original Sponsor: Rep. Salud Carbajal (D-CA-24)
  • Original Cosponsors:  Rep. Scott Peters (D-CA-50)
• See our public website for more details on the benefits of this policy including who supports the Energy Innovation Act.

How it Works

1. Carbon Fee

• This policy puts a fee on fossil fuels like coal, oil and gas. It starts low and grows over time. This will drive down carbon pollution because energy companies, leading industries, and American consumers will move toward cleaner, cheaper options.

2. Carbon Dividend

• The money collected from the carbon fee is allocated in equal shares every month to the American people to spend as they see fit. Program administrative costs are paid from the fees collected. The government does not keep any of the money from the carbon fee.

3. Border Carbon Adjustment

• To protect U.S. manufacturers and jobs, imported goods from countries with equivalent carbon policies will pay a border carbon adjustment, and goods exported from the United States to countries without similar policies will receive a refund.

CCL’s Analysis

CCL supports the Energy Innovation and Carbon Dividend Act because it will be effective at reducing emissions and protects low- and middle-income households from energy and other price increases. It aligns closely with CCL’s Carbon Fee and Dividend proposal:

• The carbon price starts at $15/ton CO2 equivalent and increases $10/ton each year.
• All net revenue (after administration) is allocated as a monthly dividend to households with a full share for each adult and a half share for each child under 19 years old.
• The carbon fee covers all fossil fuels and is assessed as far upstream as possible.
• There is a border carbon adjustment to provide a level playing field for imported and exported products.

There are some differences from our Carbon Fee and Dividend proposal, including an exemption for military and agricultural fuel, a rebate for carbon capture and storage, and a short list of other technical variances. Our D.C. legislative staff have carefully analyzed these provisions and found that none of the differences significantly impact the emissions reductions or benefits to households. See our Energy Innovation and Carbon Dividend Act Q&A for full details on these differences.

CCL believes the Energy Innovation and Carbon Dividend Act deserves our full support, given how closely it mirrors our original Carbon Fee and Dividend proposal and its real chance to pass through Congress and become law.

If you have further questions, please review our Energy Innovation Act Forums. If we have not answered your questions yet, you can post them there.

Details from the 117th Congress (2021)
 

• Congress.gov Page For H.R.2307
• Rep. Deutch's Press Release & Legislative Text
• Sponsors List
  • Original Sponsor: Rep. Ted Deutch (D-FL-22)
  • Original Cosponsors: Salud Carbajal (D-CA-24),Tony Cárdenas (D-CA-29), Matt Cartwright (D-PA-08), Judy Chu (D-CA-27), Gerald Connolly (D-VA-11),Angie Craig (D-MN-02), Lou Correa (D-CA-46),Charlie Crist (D-FL-13), Jason Crow (D-CO-06), Anna Eshoo (D-CA-18), Dwight Evans (D-PA-03), John Garamendi (D-CA-03), Hank Johnson (D-GA-04), Derek Kilmer (D-WA-06), Barbara Lee (D-CA-13), Tom Malinowski (D-NJ-07), Grace Meng (D-NY-06), Joseph Morelle (D-NY-25), Seth Moulton (D-MA-06), Scott Peters (D-CA-52), Dean Phillips (D-MN-03), Chellie Pingree (D-ME-01), Jamie Raskin (D-MD-08), Lucille Roybal-Allard (D-CA-40), Mary Gay Scanlon (D-PA-05), Jan Schakowsky (D-IL-09), Brad Sherman (D-CA-30), Albio Sires (D-NJ-08)
  • Cosponsors: Thomas Suozzi (D-NY-3), Linda Sanchez (D-CA-38), Steve Cohen (D-TN-9), Susan Wild (D-PA-7), David Trone (D-MD-6), Andy Levin (D-MI-9), Grace Napolitano (D-CA-32), Sara Jacobs (D-CA-53), Joyce Beatty (D-OH-3), Eleanor Holmes Norton (D-DC-At Large), Robin Kelly (D-IL-2), Mike Levin (D-CA-49), Deborah K. Ross (D-NC-2), Bonnie Watson Coleman (D-NJ-12), Ann M. Kuster (D-NH-2), Ed Perlmutter (D-CO-7), Emanuel Cleaver (D-MO-5), Juan Vargas (D-CA-51), Jim Cooper (D-TN-5), Joe Neguse (D-CO-2), Madeleine Dean (D-PA-4), Sean Patrick Maloney (D-NY-18), Andre Carson (D-IN-7), Jake Auchincloss (D-MA-4), Alan S. Lowenthal (D-CA-47), Veronica Escobar (D-TX-16), C.A. Dutch Ruppersberger (D-MD-2), Rep. John Yarmuth (D-KY-3), Rep. Mark Pocan (D-WI-2), Rep. James A. Himes (D-CT-4), David Cicilline (D-RI-1), Ted Lieu (D-CA-33), Kathleen Rice (D-NY-4), Jackie Speier (D-CA-14), Jesus G. “Chuy” Garcia (D-IL-4), Pete Aguilar (D-CA-31), Katie Porter (D-CA-45), Frederica S. Wilson (D-FL-24), Daniel T. Kildee (D-MI-5), Eric Swalwell (D-CA-15), Al Lawson, Jr. (D-FL-5), Jared Huffman (D-CA-2), Marie Newman (D-IL-03), Mark DeSaulnier (D-CA-11), Adam Schiff (D-CA-28), Jerry Nadler (D-NY-10), Lloyd Doggett (D-TX-35), Gregory W. Meeks (D-NY-5), Raul Ruiz (D-CA-36), Kaiali'I Kahele (D-HI-2), Diana Degette (D-CO-1), Donald M. Payne, Jr. (D-NJ-10),  James R. Langevin (D-RI-2), Brenda L. Lawrence (D-MI-14), Pramila Jayapal (D-WA-7), Karen Bass (D-CA-37), Alma S. Adams (D-NC-12), Ruben Gallego (D-AZ-7), Jahana Hayes (D-CT-5), Donald Beyer (D-VA-8), Lucy McBath (D-GA-6), Adam Smith, (D-WA-9), Kathy Manning (D-NC-6), Chrissy Houlahan (D-PA-6), Dina Titus (D-NV-1), James McGovern (D-MA-2), Haley Stevens (D-MI-11)
• Progress Page (helpful totals and timeline)

Details from the 116th Congress (2019)

• • Original Sponsor: Rep. Ted Deutch (D-FL-22)
  • Original Cosponsors: Reps. Judy Chu (D-CA-27), Charlie Crist (D-FL-13), Anna Eshoo (D-CA-18), Daniel Lipinski (D-IL-3), Francis Rooney (R-FL-19), Scott Peters (D-CA-52)
  • Cosponsors: Reps. Dean Phillips (D-MN-03), Hank Johnson (D-GA-04), Salud Carbajal (D-CA-24), Alcee Hastings (D-FL-20), Susan Wild (D-PA-07), Yvette Clarke (D-NY-09), Jackie Speier (D-CA-14), Jan Schakowsky (D-IL-9), Gerald Connolly (D-VA-11), Chellie Pingree (D-ME-1), Mark DeSaulnier (D-CA-11), Adam Schiff (D-CA-28), Angie Craig (D-MN-02), Tom Malinowski (D-NJ-07), Albio Sires (D-NJ-08), Harley Rouda (D-CA-48), Jim McGovern (D-MA-02), Barbara Lee (D-CA-13), Gil Cisneros (D-CA-39), Mike Levin (D-CA-49), Pete Aguilar (D-CA-31), Denny Heck (D-WA-10), Katie Porter (D-CA-45), Robin Kelly (D-IL-02), Al Lawson (D-FL-05), Jim Himes (D-CT-04), Andy Levin (D-MI-09), Ted Lieu (D-CA-33), Seth Moulton (D-MA-06), Jamie Raskin (D-MD-08), Veronica Escobar (D-TX-16), Kathleen Rice (D-NY-04), David Price (D-NC-04), Susan Davis (D-CA-53), Alma Adams (D-NC-12), Dwight Evans (D-PA-03), Madeleine Dean (D-PA-04), Bennie Thompson (D-MS-02), Daniel Kildee (D-MI-05), Steve Cohen (D-TN-09), Jose Neguse (D-CO-02), Danny Davis (D-IL-07), Brenda Lawrence (D-MI-14), David Trone (D-MD-06), Matt Cartwright (D-PA-08), Karen Bass (D-CA-37), Bonnie Watson Coleman (D-NJ-12), Dutch Ruppersberger (D-MD-02), Joseph Morelle (D-NY-25), Derek Kilmer (D-WA-06), Lucy McBath (D-GA-06), Ed Perlmutter (D-CO-07), Emanuel Cleaver (D-MO-05), Brad Sherman (D-CA-30), Jesus "Chuy" Garcia (D-IL-04), Thomas Suozzi (D-NY-03), Lucille Roybal-Allard (D-CA-40), Luis Correa (D-CA-46), Grace Meng (D-NY-06), Linda Sánchez (D- CA-38), John Yarmuth (D-KY-03), Gregory Meeks (D- NY-05), Sanford Bishop, Jr. (D-GA-02), Sean Patrick Maloney (D-NY-18), Donald Payne (D-NJ-10), William Lacy Clay, Jr. (D-MO-01), Ami Bera (D-CA-07), Juan Vargas (D-CA-51), Annie Kuster (D-NH-02), Grace Napolitano (D-CA-32), Mary Gay Scanlon (D-PA-05), Jason Crow (D-CO-06), Frederica Wilson (D-FL-24), Tony Cárdenas (D-CA-29), Norma Torres (D-CA-35), Rep. Mike Quigley (D-IL), Rep. Andre Carson (D-IN), John Garamendi (D-CA-03) and Joyce Beatty (D-OH-03)
• H.R. 763 Congress.gov page & Press Release 

Details from the 115th Congress (2018)

The Energy Innovation and Carbon Dividend Act will drive down America’s carbon pollution and bring climate change under control, while unleashing American technology innovation and ingenuity. It’s an effective, bipartisan climate solution that is good for people and good for the economy. 

• Original Senate Sponsor: Sen. Chris Coons (D-DE) Original Cosponsor: Sen. Jeff Flake (R-AZ)
• S. 3791 & Press Release (12/19/2018)
• Original House Bill Sponsor: Rep. Ted Deutch (D-FL-22), Original Cosponsors: Reps. Brian Fitzpatrick (R-PA-08),  John Delaney (D-MD-06), Francis Rooney (R-FL-19), Charlie Crist (D-FL-13)
• House Cosponsors: Rep. Dave Trott (R-MI-11), Rep. Anna Eshoo (D-CA-18), Rep. Judy Chu (D-CA-27), Rep. Daniel Lipinski (D-IL-3), Rep. Scott Peters (D-CA-52)
• H.R.7173 (Full Bill Text) & Press Release (11/27/2018)

• (0:00) Intro & agenda
• (1:17) Legislative and policy overview
• (9:25) Data behind the main benefits
• (15:57) Talking about Energy Innovation Act
• (19:03) Get active in your community
• (33:10) Closing & a reminder of who we are

• Elli Sparks
• Ben Pendergrass

• Download Google Slides presentation.

• Write Congress!
• Call Congress!
• Tweet Congress!
• Energy Innovation Act Q&A
• Energy Innovation Act Comparison Chart
• Energy Innovation Act Website
• Columbia Center for Global Energy Policy's Analysis (external study)
• All CCL Community resources associated with Energy Innovation Act.