by Laura Davison, Ari Natter, and Jennifer A Dlouhy (Bloomberg) Carbon tax gains momentum as talks on spending bill heat up; Plan would use tax proceeds to send cash payments to Americans -- Senate Democrats are developing a carbon-tax proposal that could potentially be used to offset some of the costs of a sweeping social-spending bill as well as direct cash payments to households, according to a key lawmaker.
“It’s projected that making polluters pay -- when combined with clean energy tax credits -- would lower the cost of clean electricity for Americans,” Senate Finance Committee Chairman Ron Wyden said in a statement to Bloomberg News Friday. “I’ve worked on this for years, and have continued to develop the proposal as part of my menu of options for the caucus.”
A “substantial portion” of the revenue generated from a carbon tax would be disbursed to Americans in the form of cash payments, Wyden said. That could help increase public support for the tax, but would also mean less money to offset the cost of the up-to-$3.5 trillion so-called reconciliation bill.
...
Momentum for such a levy is growing as a way to address climate change. And economists have long favored a carbon tax as a straightforward approach to putting a price on the greenhouse-gas emissions.
...
Advocates say it would encourage companies and consumers to pollute less. The American Petroleum Institute, the oil-industry trade group that counts Exxon Mobil Corp. among its members, and the Chamber of Commerce have both endorsed a price on carbon, which could take the form of a levy.
But industry supporters generally want the carbon tax imposed as a substitute for existing regulations on greenhouse gases -- a tradeoff that is unlikely to be part of the plan Democrats are assembling.
...
The tax is appealing because of its role as a potential revenue-raiser, but lawmakers are also working to ensure that a significant chunk of the proceeds goes back to middle- and low-income families.
...
Still, a tax that could increase the costs of driving, flying and consumer goods is likely to face stiff political resistance from some quarters, and Republicans previously have voted against the concept of placing a tax on carbon dioxide. Some moderate Republicans, including Lisa Murkowski of Alaska and Mitt Romney of Utah have signaled they are receptive to the idea.
GOP opposition wouldn’t be able to nix the proposal, because Democrats aim to pass the tax-and-spending bill on a party-line vote. Still, Democrats have tight majorities in both chambers, meaning that they need nearly every member in the House and all 50 caucus members in the Senate to support the legislation.
...
Supporters argue that a domestic carbon tax would have to be paired with a levy on imports -- known as a carbon border adjustment tax -- to protect U.S. workers in energy-intensive industries and to ensure that companies don’t shift manufacturing out of the U.S. to nations with lax environmental regimes.
...
Even so, U.S. Special Presidential Envoy for Climate John Kerry on Wednesday dangled the prospect of a tariff on carbon-intensive imports if other nations don’t limit their emissions and reliance on coal-fired power to fuel cheap manufacturing. READ MORE
WYDEN’S RECONCILIATION PRIORITIES: (Politico's Morning Energy)
Sen. Sheldon Whitehouse dishes on reconciliation strategy (Plugged In-Ricochet)
Democrats Weigh Carbon Tax After Manchin Rejects Key Climate Provision: Faced with the likely demise of a central pillar of President Biden’s agenda, the White House and outraged lawmakers are scrambling to find alternatives. (New York Times/Seattle Times)
The other climate options (Politico's Morning Energy)
Shopping the climate options (Politico's Morning Energy)
Excerpt from New York Times: Opposition from a single moderate Democrat to corporate and income tax rate increases has revived efforts in the Senate to draft a tax on carbon dioxide pollution as a way to pay for the Democrats’ proposed $3.5 billion budget bill.
Senator Kyrsten Sinema of Arizona has not advocated for a carbon tax, which President Biden and other key Democrats have shied away from as a huge political risk. But her resistance to tax rate increases to pay for the Democrats’ ambitious social policy and climate legislation has set off a scramble for alternatives, including a carbon tax, international corporate tax changes and closing loopholes for businesses that pay through the individual income tax system.
Senator Ron Wyden of Oregon, the chairman of the Senate Finance Committee, confirmed that the Senate majority leader had asked him to craft legislation that would put a price on carbon emissions but to ensure that the policy would respect Mr. Biden’s pledge not to raise taxes on families earning less than $400,000.
...
That could be done with some kind of rebate or “carbon dividend” to help taxpayers as the country transitions from gasoline-powered vehicles to electric cars and trucks and from coal- and natural gas-fired electric power plants to renewable energy, Mr. Wyden said.
...
“A price on carbon, such as a carbon tax, provides the economic incentive for the quickest, cheapest and most comprehensive emission reductions across the entire economy,” said Richard Newell, president of Resources for the Future, a nonpartisan energy and environment research organization.
...
A recent analysis by Mr. Newell’s staff found that a tax on American carbon dioxide pollution that started at $15 per ton and escalated to $50 per ton by 2030 would cut domestic carbon emissions by about 44 percent from 2005 levels — getting the Biden administration most of the way to its ambitious goal of reducing greenhouse gases by 50 percent from 2005 levels by 2030. It also found that such a program could actually lead to lower, not higher, electricity bills.
A carbon tax could also solve another worrisome problem for Democrats: Under the rules of the Senate, only legislation that strictly qualifies as budget policy may be included in the bill, which is being moved through Congress under a fast-track process known as reconciliation.
A pollution tax would easily pass that test.
...
The tax would be applied directly to coal mining companies, large natural gas processing plants and oil refiners, based on the emissions associated with their products, with one exception: Oil refiners would very likely be charged for producing diesel fuel and petrochemicals, but not gasoline — a way to try to prevent cost increases from hitting most American drivers at the pump. READ MORE
Excerpt from Politico's Morning Energy: WYDEN’S RECONCILIATION PRIORITIES: Senate Finance Chair Ron Wyden is standing behind carbon pricing and solar tax credits under reconciliation as lawmakers start trimming and cutting to match moderates’ opposition to the $3.5 trillion topline figure. The chairman’s blessing signals the two priorities could avoid the cutting block for at least some time, but ME isn’t making any predictions about what will survive the reconciliation chaos.
Carbon pricing saw a major boost in Democratic interest in recent weeks in the wake of the summer’s devastating climate change-driven natural disasters, Wyden said, with “a whole host of senators” approaching him saying “let’s go all in to create a pricing strategy.” Democrats are bouncing ideas to create a carbon pricing scheme that won’t violate Biden’s pledge not to raise taxes on households who make under $400,000 a year, including possible exemptions for gasoline.
Wyden made the remarks during a news conference Tuesday to push for Sen. Jon Ossoff’s solar tax credits under the Solar Energy Manufacturing for America Act to be included in the reconciliation package. The bill would bolster a U.S. solar supply chain through tax incentives — in a move to reverse the heavy reliance on foreign solar components.
Ossoff added supply concerns circling around the current solar tariff fights “underscore the urgency of passing the legislation now because it will take some time to scale up production.” READ MORE
Excerpt from Plugged In-Richochet: Democratic Sen. Sheldon Whitehouse of Rhode Island joins “Plugged In” hosts Josh Siegel and Neil Chatterjee to talk about all things reconciliation.
Whitehouse says a fee on carbon emissions is “highly likely” to be included in Democrats’ climate and social spending package. He warns the U.S. would look like “jerks and putzes” if Congress fails to pass climate legislation before the U.N. climate conference in Glasgow. LISTEN to AUDIO
Excerpt from New York Times/Seattle Times: The almost certain demise of the clean electricity program at the heart of Biden’s agenda — which comes as scientists say forceful policies are needed to avert climate change’s most devastating impacts — has prompted outrage among many Democrats and has led several to say now is the moment for a carbon tax.
“I’ve had a carbon pricing bill in my desk for the last three years just waiting for the time,” said Sen. Ron Wyden, D-Ore., chair of the Senate Finance Committee.
“What has been striking is the number of senators who’ve come to me about this since early fall — after Louisiana got clobbered with storms, the East Coast flooding, the Bootleg wildfires here in my own state,” said Wyden, speaking by telephone Saturday from Oregon. “Now there are a number of senators, key moderate senators, who’ve said they’re open to this. And a lot of House folks who have said they would support it if the Senate sends it over.”
But a carbon tax can be politically explosive. Industries could pass along their higher costs, leaving Biden and fellow Democrats vulnerable to claims that they are raising taxes on the middle class at a moment when inflation and energy prices are rising. Environmental justice advocates say a carbon tax permits companies to continue polluting, albeit at a higher cost, which disproportionately harms low-income communities. And it is unclear if Manchin, whose vote is crucial to Biden’s legislative agenda, would support a carbon tax.
...
As they seek alternatives, White House officials are also weighing a voluntary version of a cap-and-trade program, which would create a market for polluters to buy and sell allowances for a certain amount of emissions.
...
In recent days, as White House officials were trying to forge a deal, Manchin told them he would not support any legislation that includes a clean electricity program. Manchin, whose state is a major coal producer and who has financial ties to the coal industry, has said abandoning fossil fuels will harm the country’s energy independence and would make climate change worse.
Once his opposition to the clean electricity program became public Friday, several fellow Democrats expressed outrage.
...
Congress “cannot afford to gut” the climate provisions in the bill, Rep. Alexandria Ocasio-Cortez, D-N.Y., wrote on Twitter. “This issue is bigger than ideology. It is a moral imperative for humanity and our planet’s future to reduce and eventually eliminate emissions,” she wrote. “There are many ways to do it, but we can’t afford to give up.”
Sen. Jeff Merkley, D-Ore., has been involved with the “No climate, no deal” rallies. “Listen, my state is burning up. We’re losing our snowpack, the ocean’s acidifying, affecting our shellfish,” he said Saturday. “This is a code red.”
Merkley said he would not vote for a reconciliation package that did not have “significant climate provisions,” but he said he was open to any option that cut carbon dioxide emissions in half by 2030 and produced carbon-free electricity by 2035. READ MORE
Excerpt from Politico's Morning Energy: Shopping the Climate Options ... DEMOCRATS DON'T STOP RALLYING: After a weekend of bemoaning the apparent demise of the Clean Electricity Performance Program — the most ambitious part of their climate plan — Democrats' mood suddenly turned chipper on Tuesday and they expressed new optimism that a deal could come together soon. But just what will make up that deal is floating in the ether.
...
Chatter that a carbon tax was the political solution to replace the CEPP was quickly quashed by Senate Energy Chair Joe Manchin, who told reporters that a price on carbon was “off the board.” Senate Finance Chair Ron Wyden continues to push clean energy tax credits under his committee’s purview that he says will yield the lion’s share of President Joe Biden’s goal to cut U.S. carbon emissions by at least 50 percent by 2030, but details of that are still being worked out with the House.
One environmental advocate close to negotiations on a new climate proposal told POLITICO’s Burgess Everett and Anthony Adragna that a “Plan C” could also involve pouring tons of money into grants, loan guarantees and other programs aimed at curbing emissions.
...
MEANWHILE IN INDUSTRY: BP, Shell and thirteen other companies threw their support to climate provisions in the Democrat’s current budget reconciliation framework Tuesday. “The climate provisions in the Build Back Better Act support our own investment in low-carbon innovation and will help us grow our business and remain competitive globally while also meeting our climate goals,” the group said in a letter to House Majority Leader Nancy Pelosi. Interestingly, the companies, which also include Unilever, Ikea and Carrier, said they “look forward to discussing the revenue provisions including potential alternative approaches.” READ MORE
More than 50,000 articles in our online library!
Use the categories and tags listed below to access the nearly 50,000 articles indexed on this website.
Advanced Biofuels USA Policy Statements and Handouts!
- For Kids: Carbon Cycle Puzzle Page
- Why Ethanol? Why E85?
- Just A Minute 3-5 Minute Educational Videos
- 30/30 Online Presentations
- “Disappearing” Carbon Tax for Non-Renewable Fuels
- What’s the Difference between Biodiesel and Renewable (Green) Diesel? 2020 revision
- How to De-Fossilize Your Fleet: Suggestions for Fleet Managers Working on Sustainability Programs
- New Engine Technologies Could Produce Similar Mileage for All Ethanol Fuel Mixtures
- Action Plan for a Sustainable Advanced Biofuel Economy
- The Interaction of the Clean Air Act, California’s CAA Waiver, Corporate Average Fuel Economy Standards, Renewable Fuel Standards and California’s Low Carbon Fuel Standard
- Latest Data on Fuel Mileage and GHG Benefits of E30
- What Can I Do?
Donate
DonateARCHIVES
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- June 2007
- February 2007
- January 2007
- October 2006
- April 2006
- January 2006
- April 2005
- December 2004
- November 2004
- December 1987
CATEGORIES
- About Us
- Advanced Biofuels Call to Action
- Aviation Fuel/Sustainable Aviation Fuel (SAF)
- BioChemicals/Renewable Chemicals
- BioRefineries/Renewable Fuel Production
- Business News/Analysis
- Cooking Fuel
- Education
- 30/30 Online Presentations
- Competitions, Contests
- Earth Day 2021
- Earth Day 2022
- Earth Day 2023
- Earth Day 2024
- Executive Training
- Featured Study Programs
- Instagram TikTok Short Videos
- Internships
- Just a Minute
- K-12 Activities
- Mechanics training
- Online Courses
- Podcasts
- Scholarships/Fellowships
- Teacher Resources
- Technical Training
- Technician Training
- University/College Programs
- Events
- Coming Events
- Completed Events
- More Coming Events
- Requests for Speakers, Presentations, Posters
- Requests for Speakers, Presentations, Posters Completed
- Webinars/Online
- Webinars/Online Completed; often available on-demand
- Federal Agency/Executive Branch
- Agency for International Development (USAID)
- Agriculture (USDA)
- Commerce Department
- Commodity Futures Trading Commission
- Congressional Budget Office
- Defense (DOD)
- Air Force
- Army
- DARPA (Defense Advance Research Projects Agency)
- Defense Logistics Agency
- Marines
- Navy
- Education Department
- Energy (DOE)
- Environmental Protection Agency
- Federal Energy Regulatory Commission (FERC)
- Federal Reserve System
- Federal Trade Commission
- Food and Drug Administration
- General Services Administration
- Government Accountability Office (GAO)
- Health and Human Services (HHS)
- Homeland Security
- Housing and Urban Development (HUD)
- Interior Department
- International Trade Commission
- Joint Office of Energy and Transportation
- Justice (DOJ)
- Labor Department
- National Academy of Sciences
- National Aeronautics and Space Administration
- National Oceanic and Atmospheric Administration
- National Research Council
- National Science Foundation
- National Transportation Safety Board (NTSB)
- Occupational Safety and Health Administration
- Overseas Private Investment Corporation
- Patent and Trademark Office
- Securities and Exchange Commission
- State Department
- Surface Transportation Board
- Transportation (DOT)
- Federal Aviation Administration
- National Highway Traffic Safety Administration (NHTSA)
- Pipeline and Hazardous Materials Safety Admin (PHMSA)
- Treasury Department
- U.S. Trade Representative (USTR)
- White House
- Federal Legislation
- Federal Litigation
- Federal Regulation
- Feedstocks
- Agriculture/Food Processing Residues nonfield crop
- Alcohol/Ethanol/Isobutanol
- Algae/Other Aquatic Organisms/Seaweed
- Atmosphere
- Carbon Dioxide (CO2)
- Field/Orchard/Plantation Crops/Residues
- Forestry/Wood/Residues/Waste
- hydrogen
- Manure
- Methane/Biogas
- methanol/bio-/renewable methanol
- Not Agriculture
- RFNBO (Renewable Fuels of Non-Biological Origin)
- Seawater
- Sugars
- water
- Funding/Financing/Investing
- grants
- Green Jobs
- Green Racing
- Health Concerns/Benefits
- Heating Oil/Fuel
- History of Advanced Biofuels
- Infrastructure
- Aggregation
- Biofuels Engine Design
- Biorefinery/Fuel Production Infrastructure
- Carbon Capture/Storage/Use
- certification
- Deliver Dispense
- Farming/Growing
- Precursors/Biointermediates
- Preprocessing
- Pretreatment
- Terminals Transport Pipelines
- International
- Abu Dhabi
- Afghanistan
- Africa
- Albania
- Algeria
- Angola
- Antarctica
- Argentina
- Armenia
- Aruba
- Asia
- Asia Pacific
- Australia
- Austria
- Azerbaijan
- Bahamas
- Bahrain
- Bangladesh
- Barbados
- Belarus
- Belgium
- Beliz
- Benin
- Bermuda
- Bhutan
- Bolivia
- Bosnia and Herzegovina
- Botswana
- Brazil
- Brunei
- Bulgaria
- Burkina Faso
- Burundi
- Cambodia
- Cameroon
- Canada
- Caribbean
- Central African Republic
- Central America
- Chad
- Chile
- China
- Colombia
- Congo, Democratic Republic of
- Costa Rica
- Croatia
- Cuba
- Cyprus
- Czech Republic
- Denmark
- Dominican Republic
- Dubai
- Ecuador
- El Salvador
- Equatorial Guinea
- Eqypt
- Estonia
- Ethiopia
- European Union (EU)
- Fiji
- Finland
- France
- French Guiana
- Gabon
- Georgia
- Germany
- Ghana
- Global South
- Greece
- Greenland
- Guatemala
- Guinea
- Guyana
- Haiti
- Honduras
- Hong Kong
- Hungary
- Iceland
- India
- Indonesia
- Iran
- Iraq
- Ireland
- Israel
- Italy
- Ivory Coast
- Jamaica
- Japan
- Jersey
- Jordan
- Kazakhstan
- Kenya
- Korea
- Kosovo
- Kuwait
- Laos
- Latin America
- Latvia
- Lebanon
- Liberia
- Lithuania
- Luxembourg
- Macedonia
- Madagascar
- Malawi
- Malaysia
- Maldives
- Mali
- Malta
- Marshall Islands
- Mauritania
- Mauritius
- Mexico
- Middle East
- Monaco
- Mongolia
- Morocco
- Mozambique
- Myanmar/Burma
- Namibia
- Nepal
- Netherlands
- New Guinea
- New Zealand
- Nicaragua
- Niger
- Nigeria
- North Africa
- North Korea
- Northern Ireland
- Norway
- Oman
- Pakistan
- Panama
- Papua New Guinea
- Paraguay
- Peru
- Philippines
- Poland
- Portugal
- Qatar
- Romania
- Russia
- Rwanda
- Saudi Arabia
- Scotland
- Senegal
- Serbia
- Sierra Leone
- Singapore
- Slovakia
- Slovenia
- Solomon Islands
- South Africa
- South America
- South Korea
- South Sudan
- Southeast Asia
- Spain
- Sri Lanka
- Sudan
- Suriname
- Swaziland
- Sweden
- Switzerland
- Taiwan
- Tanzania
- Thailand
- Timor-Leste
- Togo
- Trinidad and Tobago
- Tunisia
- Turkey
- Uganda
- UK (United Kingdom)
- Ukraine
- United Arab Emirates UAE
- Uruguay
- Uzbekistan
- Vatican
- Venezuela
- Vietnam
- Wales
- Zambia
- Zanzibar
- Zimbabwe
- Marine/Boat Bio and Renewable Fuel/MGO/MDO/SMF
- Marketing/Market Forces and Sales
- Opinions
- Organizations
- Original Writing, Opinions Advanced Biofuels USA
- Policy
- Presentations
- Biofuels Digest Conferences
- DOE Conferences
- Bioeconomy 2017
- Bioenergy2015
- Biomass2008
- Biomass2009
- Biomass2010
- Biomass2011
- Biomass2012
- Biomass2013
- Biomass2014
- DOE Project Peer Review
- Other Conferences/Events
- R & D Focus
- Carbon Capture/Storage/Use
- Co-Products
- Feedstock
- Logistics
- Performance
- Process
- Vehicle/Engine/Motor/Aircraft/Boiler
- Yeast
- Railroad/Train/Locomotive Fuel
- Resources
- Books Web Sites etc
- Business
- Definition of Advanced Biofuels
- Find Stuff
- Government Resources
- Scientific Resources
- Technical Resources
- Tools/Decision-Making
- Rocket/Missile Fuel
- Sponsors
- States
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawai'i
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Midwest
- Minnesota
- Mississippi
- Missouri
- Montana
- Native American tribal nation lands
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Puerto Rico
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington DC
- West Coast
- West Virginia
- Wisconsin
- Wyoming
- Sustainability
- Uncategorized
- What You Can Do
tags
© 2008-2023 Copyright Advanced BioFuels USA. All Rights reserved.
Comments are closed.