The Energy Innovation and Carbon Dividend Act of 2023 (H.R. 5744) is a bill in the United States House of Representatives that proposes a fee on carbon at the point of extraction to encourage market-driven innovation of clean energy technologies to reduce greenhouse gas emissions. The fees are recycled to citizens in monthly dividends. Most recently on September 27, 2023, the bill was reintroduced in the 118th Congress as H. R. 5744, the Energy Innovation and Carbon Dividend Act of 2023. The act was originally introduced in 2018 with bipartisan support from six co-sponsors and died when the 115th congress ended on 3 January 2019. It is principally based on Citizens' Climate Lobby's carbon fee and dividend proposal, and this organization advocates for the bill.
2018 bill The Energy Innovation and Carbon Dividend Act of 2018 was a proposed 2018 bill that intended to "create a Carbon Dividend Trust Fund for the American people in order to encourage market-driven innovation of clean energy technologies and market efficiencies which will reduce harmful pollution and leave a healthier, more stable, and more prosperous nation for future generations." The bill was originally introduced by Representative Ted Deutch (D-FL) on November 27, 2018, with bipartisan support from 4 co-sponsors. A companion bill was introduced into the United States Senate by Chris Coons (D-DE) and Jeff Flake (R-AZ) on December 19, 2018. The bill died when the 115th Congress ended on January 3, 2019. The bill was reintroduced in the 116th Congress as the Energy Innovation and Carbon Dividend Act of 2019.
2019 bill On 24 January 2019, the bill was reintroduced into the house by Representative Ted Deutch on behalf of himself and six other original cosponsors.
The 2019 version obtained 86 but was not voted on.
2021 bill On April 1, 2021, the bill was reintroduced in the 117th Congress as H.R. 2307, the Energy Innovation and Carbon Dividend Act of 2021.
Description of the bill The bill intends to: Introduce a rising upstream fee on the carbon content of fuels. Rebate fee revenues with an equal share to adults with a Social Security number or Taxpayer Identification Number, and a half-share for all minors younger than 19 per household Introduce a border carbon adjustment Adjust some regulations which would be duplicative, keep others including CAFE vehicle standards
If passed, the 2023 bill would amend the Internal Revenue Code of 1986 to:
Introduce a carbon tax at the point of extraction, beginning at $15 per metric ton of carbon dioxide equivalent and increasing each year by $10 (adjusted by inflation) or more, depending on its effectiveness, with exemptions for fuel used for military and farm purposes and fluorinated gases, rebate revenue with an equal share to adults with a Social Security number or Taxpayer Identification Number, and a half-share for all minors and adults younger than 19 per household, and introduce a border carbon adjustment on imported carbon-intensive products to discourage companies moving abroad.
It would also make adjustments to the Clean Air Act to limit the Environmental Protection Agency from placing restrictions on greenhouse gas emissions under some conditions.
Cosponsors As of September 27, 2023, the bill has been introduced multiple times in the House of Representatives. The sponsors have varied from year to year. Sponsor Party District 2018 Sponsor 2019 Sponsor 2021 Sponsor 2023 Sponsor RepublicanPA-8YesNoNoNo Former DemocratN/AYesYesYes Democratic CA-27YesYesYesNo DemocraticFL-13YesYesYesNo DemocraticCA-18YesYesYesNo Former DemocratN/AYesYes Former RepublicanN/AYesYes DemocraticCA-52YesYesYesNo DemocraticMN-03NoYesYesNo DemocraticGA-04NoYesYesNo DemocraticCA-24YesYesYesYes DemocraticFL-20NoYesNoNo DemocraticPA-15NoYesYesNo DemocraticNY-09NoYesNoNo DemocraticCA-14NoYesYesNo DemocraticIL-09NoYesYesNo DemocraticVA-11NoYesYesNo DemocraticME-01NoYesYesNo DemocraticCA-11NoYesYesNo DemocraticCA-28NoYesYesNo DemocraticMN-02NoYesYesNo DemocraticNJ-07NoYesYesNo DemocraticNJ-08NoYesYesNo Former DemocratN/AYesYes DemocraticMA-02NoYesYesNo DemocraticCA-13NoYesYesNo Former DemocratN/AYesYes DemocraticCA-49YesYesYesNo DemocraticCA-31YesYesYesNo DemocraticWA-10YesYesYesNo DemocraticCA-45YesYesYesNo DemocraticIL-02YesYesYesNo DemocraticFL-05YesYesYesNo DemocraticCT-04YesYesYesNo DemocraticMI-09YesYesYesNo DemocraticCA-33YesYesYesNo DemocraticMA-06YesYesYesNo DemocraticMD-08YesYesYesNo DemocraticTX-16YesYesYesNo DemocraticNY-04YesYesYesNo DemocraticNC-04YesYesYesNo DemocraticCA-53YesYesYesNo DemocraticNC-12YesYesYesNo DemocraticPA-03YesYesYesNo DemocraticPA-04YesYesYesNo DemocraticMS-02YesYesYesNo DemocraticMI-05YesYesYesNo DemocraticTN-09YesYesYesNo DemocraticCO-02YesYesYesNo DemocraticIL-07YesYesYesNo DemocraticMI-14YesYesYesNo DemocraticMD-06YesYesYesNo DemocraticPA-08YesYesYesNo DemocraticCA-37YesYesYesNo DemocraticNJ-12YesYesYesNo DemocraticMD-02YesYesYesNo DemocraticNY-25YesYesYesNo DemocraticWA-06YesYesYesNo DemocraticGA-06YesYesYesNo DemocraticCO-07YesYesYesNo DemocraticMO-05YesYesYesNo DemocraticCA-30YesYesYesNo DemocraticIL-04YesYesYesNo DemocraticNY-03YesYesYesNo DemocraticCA-46YesYesYesNo DemocraticCA-40YesYesYesNo DemocraticNY-06YesYesYesNo DemocraticCA-38YesYesYesNo DemocraticKY-03YesYesYesNo DemocraticNY-05YesYesYesNo DemocraticGA-02YesYesYesNo DemocraticNY-18YesYesYesNo DemocraticNJ-10YesYesYesNo DemocraticMO-1YesYesYesNo DemocraticCA-7YesYesYesNo DemocraticNH-02YesYesYesNo DemocraticCA-32YesYesYesNo DemocraticPA-05YesYesYesNo DemocraticCO-06YesYesYesNo DemocraticFL-24YesYesYesNo DemocraticCA-29YesYesYesNo DemocraticCA-35YesYesYesNo DemocraticIL-05YesYesYesNo DemocraticIN-07YesYesYesNo DemocraticCA-03YesYesYesNo DemocraticOH-03YesYesYesNo
Reactions The Center on Global Energy Policy published a comparison of the 2018 version of the bill to other carbon tax proposals.
Support In the weeks following the reintroduction of the bill, several publications including The Washington Post, the Missoulian, and the Daily Camera published op-eds and editorials in support of the bill.
The bill is also supported by climate scientist and activist James Hansen and former secretary of state George Shultz. The governments (or parts of the governments) of several localities, including the following with more than 50,000 residents, have signed resolutions urging the United States Congress to pass the act:
Anchorage, Alaska Birmingham, Alabama Transit Citizens Advisory Board Bloomington, Indiana Environmental Commission Cincinnati, Ohio Coconut Creek, Florida Corvallis, Oregon City Council Durham, North Carolina Encinitas, California Hoboken, New Jersey Jackson, Mississippi Los Angeles County, California Olympia, Washington Palm Beach County, Florida Richmond, California Rochester, New York San Jose, California Santa Ana, California Syracuse, New York Tompkins County, New York
It has also been publicly supported by several small businesses and nonprofit organizations including Protect Our Winters.
Opposition The Center for Biological Diversity published a press release opposing the bill on the basis that its adjustments to the Clean Air Act would "only give us climate disaster."
In April 2019, novelist and leading member of Orange County for Climate Action Roger Gloss posted his opposition to HR 763, noting the lack of annual emissions targets, and the first assessment of whether targets are being met in 2030, the year in which the IPCC says emissions must have already been halved.
See also Carbon tax Carbon fee and dividend Citizens' Climate Lobby
References
External links
Energy Innovation and Carbon Dividend Act