Introduction To The Energy Innovation Act

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Description

The bipartisan Energy Innovation and Carbon Dividend Act of 2019, H.R. 763, a bill which aligns closely with CCL’s carbon pricing principles, has been re-introduced in Congress. CCL fully supports this bill and is working diligently toward its passage. The guide below provides a walkthrough of the components of the legislation and you can also choose to watch or listen for an introduction behind this legislation.

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About the Legislation

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.

  • See our public website for more details on the benefits of this policy including who supports the Energy Innovation Act.
  • Sponsors List
    • 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), Katie Hill (D-CA-25), Brad Sherman (D-CA-30), Jesus "Chuy" Garcia (D-IL-04)
  • H.R. 763 Congress.gov page & Press Release 
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 will pay a border carbon adjustment, and goods exported from the United States will receive a refund under this policy.

4. Regulatory Adjustment    

  • This policy preserves effective current regulations, like auto mileage standards, but pauses the EPA authority to regulate the CO2 and equivalent emissions covered by the fee for their greenhouse gas effects only, for the first 10 years after the policy is enacted. If emission targets are not being met after 10 years, Congress gives clear direction to the EPA to regulate those emissions to meet those targets. The pause does not impact EPA regulations related to water quality, air quality, health or other issues. This policy’s price on pollution will lower carbon emissions far more than existing and pending EPA regulations.
CCL’s Analysis

 

CCL supports the Energy Innovation and Carbon Dividend Act because it has bipartisan support, will be effective at reducing emissions, and protects low and middle income households from 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 Carbon Fee and Dividend, including some narrow limits on regulations, an exemption for military and agricultural fuel, a rebate for carbon capture and storage, and a short list of other technical variances. Our DC 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 CF&D 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 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. 

  • See our public website for more details on the benefits of this policy
  • 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)
Length
Press play to start the video (7m 22s)
https://vimeo.com/showcase/6097269
Video Outline
To skip ahead to a specific section go to the time indicated in parenthesis.

Intro
(from beginning)

Policy Benefits
(1:37)

How It Works
(3:18)

Supporting The Act
(5:43)

Instructor(s)

Dr. Danny Richter

Downloads

Download PowerPoint or Google Slides presentation.

Audio length
Press play to start the audio (7m 22s)
Audio embed code
Audio Outline
To skip ahead to a specific section go to the time indicated in parenthesis.

Intro
(from beginning)

Policy Benefits
(1:37)

How It Works
(3:18)

Supporting The Act
(5:43)

Instructor(s)

Dr. Danny Richter

Downloads
Go Deeper
See our public website for more details on the benefits of this policy
Discussion Topic
To Print
Instructions for printing this page on Community.
Category
Training
Topics
Climate Policy
Format
Audio / Video, Presentation
File Type
Google Slides, PowerPoint (.pptx)
Training Resources