The most effective application of a price on carbon would come on a national level as the result of federal legislation. Several proposals exist to price carbon nationally, including:
- The “American Opportunity Carbon Fee Act,” introduced by Sen. Sheldon Whitehouse (D-RI), would begin by pricing carbon pollution at $42/ton and increase by 2% (adjusted for inflation) annually, a price that would reduce emissions roughly by half over the next decade. The revenue would be credited to an American Opportunity Fund, whose uses could include tax cuts, dividends, infrastructure investment, and more. Learn more here.
- HR 1027, the “Healthy Climate and Family Security Act of 2015,” introduced by Rep. Chris Van Hollen (D-MD). The legislation would reduce carbon pollution by 20% by 2020, 40% by 2030, and 80% by 2050 below 2005 levels. It caps fossil fuels, requires energy companies to purchase pollution permits at auction, and returns all the auction revenue in equal amounts to every U.S. resident with a valid Social Security number. Learn more at the Climate & Prosperity web site.
- The “Managed Carbon Price Act of 2015,” introduced by Rep. Jim McDermott (D-WA), would reduce emissions by requiring polluters to buy permits, which would escalate in price and scarcity over time as determined by Congress. It returns 100% of revenue to citizens through direct dividends. Learn more here.
- The “State’s Choice Act,” introduced by Rep. John Delaney (D-MD), would empower states to use market-based solutions, including a carbon fee, to efficiently address climate change. Learn more here.
- The Citizen’s Climate Lobby “fee and dividend” proposal, which would assess a fee of $15/ton of carbon emitted and would escalate at least $10/yr. Revenues would be returned in monthly equal dividends. Learn more here.