Sending Office: Honorable Jimmy Panetta
Fight Climate Change and Put a Price on Carbon
Cosponsor the Climate Action Rebate Act of 2019 to price carbon and invest in American families, infrastructure, and renewable energy technologies
Please join me in addressing the severe and serious threat of climate change by cosponsoring H.R. 4051, the Climate Action Rebate Act of 2019. This legislation is designed to reduce emissions and drive down pollution while investing in American families,
rebuilding our nation’s infrastructure, and encouraging market-driven innovation in clean energy technologies.
Recent major climate assessments have made clear the consequences if we fail to address climate change. We have high-confidence projections of extreme temperatures, rising sea levels, and increased frequency and intensity of storms and droughts. Failure
to act now will result in more severe costs to our environment, economy, and security. Leading economists agree that a market-based approach is an effective and efficient policy to reduce emissions.
Based on these findings, the Climate Action Rebate Act of 2019 is designed to reduce U.S. carbon emissions by 55 percent by 2030 and 100 percent by 2050, compared to 2017 emissions. This legislation contains the following key components:
- Carbon Fee – A gradually rising fee on fossil fuels and fluorinated gases, adjusted for their greenhouse gas potential. The fee is assessed once, upstream, and starts at $15 per metric ton of CO2e. Exemptions and rebates are provided for
carbon capture, utilization, and sequestration (CCUS); non-emissive uses such as chemicals production; and nature-based carbon sinks.
- Border Adjustment – Fossil fuels and carbon-intensive imported goods pay an equalization fee at the border and comparable exported goods receive a refund. This prevents U.S. producers in energy-intensive, trade-exposed industries from facing
a disadvantage relative to overseas competitors. This provision is designed for WTO compliance.
- Revenue Use – The legislation rebates 70% of net revenues from the carbon fee to low- and middle-income Americans as a monthly dividend. An equal share is provided to adults with a Social Security Number or Taxpayer Identification Number
and a half share is provided for children under 19 years old. The remainder of the revenues are spent on additional necessary investments in a cleaner energy future, including rebuilding our infrastructure, support for energy innovation, and funds to help
workers and communities transition to a cleaner energy economy.
- Additional Provisions – All uses of the revenue must be spent in accordance with the Buy American and Davis-Bacon Acts. The legislation does not preempt state law or undermine existing federal regulatory authority.
This legislation is supported by a wide range of groups, including Ceres, Environmental Defense Fund, American Council on Renewable Energy (ACORE), Friends Committee on National Legislation, Information Technology and Innovation Foundation, Health Care Without
Harm, and the Clean Air Task Force.
Original House Cosponsors: Jimmy Panetta, Tom Suozzi
Original Senate Cosponsors: Chris Coons, Dianne Feinstein
Member of Congress
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