Deutch Statement on One Year Since Bipartisan Carbon Fee Plan Introduced
Statement
One year ago today, Congressman Ted Deutch (D-FL) and Congressman Francis Rooney (R-FL), the co-chairs of the bipartisan Climate Solutions Caucus, introduced bipartisan legislation to price carbon and return 100% of the net revenue as a rebate to American families.
Congressman Deutch said, "Report after report, editorial after editorial, have argued the merits of a carbon fee plan to aggressively and effectively curb our carbon emissions and address climate change. In the last year, my bipartisan plan has earned support from over 75 of our colleagues, 93 local governments, 575 businesses, and hundreds of nonprofits, faith-based groups, and prominent individuals. Congressman Rooney and I believe our plan offers a viable and market-friendly way to transform our energy sector, clean our environment, and seriously address climate change."
The Energy Innovation and Carbon Dividend Act (EICDA) will help reduce U.S. carbon pollution by up to 38% by 2030, with over 90% reduction target by 2050 (vs. 2016 levels). This would be achieved by pricing carbon at $15 per metric ton of CO2e and increasing the price by $10 every year. The Treasury Department would return 100% of the net revenue back to the American people, a policy highlighted by a Treasury Department report as helping lower- and middle-income families.
Text of the legislation can be found here.
Last November, Researchers with Columbia University's School of International and Public Affairs (SIPA) Center on Global Energy Policy, in a joint effort with Rhodium Group, released a report analyzing the legislation.
Among the report's findings:
"Compared to 2005 levels, implementing EICDA as a stand-alone policy leads to economy-wide net GHG emissions reductions of 32--33 percent by 2025 and 36--38 percent by 2030."
"EICDA reduces local air pollution from power plants."
"The price on carbon causes the US economy to shift from carbon-intensive energy sources to low- and zero-carbon energy sources."
"EICDA generates substantial revenue that is distributed in the form of equal dividend payments."
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