New Conservative Group Lobbies for Carbon Tax

by Kelsey Tamborrino (Politico's Morning Energy) A new group with a conservative backing has formed to push for a carbon tax. The Americans for Carbon Dividends is co-chaired by two former senators: John Breaux and Trent Lott. The group calls itself "an education and advocacy campaign to build support for the Baker-Shultz Carbon Dividends Plan" developed by the ex-Secretaries of State James Baker and George Schultz that is based on free markets and limited-government principles. The New York Times reports that the group is proposing "an initial tax of $40 per ton of carbon dioxide produced" that would increase over time. "That would raise the cost of a gallon of gas by approximately 38 cents, the group says, with similar effects on household heating and other energy use. That could, in turn, encourage people and businesses to become more energy efficient and curb their use of fossil fuels," the Times writes. Already the group is planning an event today that will include Lott and Janet Yellen, who led the Federal Reserve under Obama. Money raised by the tax would be given to consumers as "dividend" that would amount to about $2,000 for a family of four in the first year. READ MORE

Excerpt from Politico's Morning Energy: The Congressional Progressive Caucus will soon release its annual "People's Budget" in response to the House Budget Committee's fiscal 2019 request. But ahead of that release, a coalition of progressive groups, organized by Food & Water Watch, is calling on the caucus to exclude a carbon tax from its proposed budget. "A carbon tax provides a government license to pollute — and to increase pollution as long as taxes are paid," they write. Read the letter. READ MORE

Excerpt from Bloomberg: Major energy companies, including the largest U.S. nuclear power generator, are putting millions of dollars into a new political campaign to push for a tax on carbon dioxide emissions -- a measure President Donald Trump has said he opposes.

Exelon Corp., is giving $1 million toward the cause, joining renewable power manufacturer First Solar Inc. and the American Wind Energy Association in helping underwrite the nonprofit organization. Some companies that back the underlying plan, including Exxon Mobil Corp., are considering donating to the new effort, according to people familiar with the campaign who asked not to be named to discuss fundraising efforts.

Two former Federal Reserve chairmen, Janet Yellen and Ben Bernanke, also are signing on as members of the Climate Leadership Council, the not-for-profit advocacy group that developed the underlying carbon tax-and-dividend plan.

Still, it aligns with the desires of some oil companies that favor a carbon fee as a predictable way to tackle greenhouse-gas emissions.

Exelon, the nation’s largest generator of carbon-free nuclear power, stands to benefit from policies encouraging low- and no-emission energy.

Under the Climate Leadership Council’s blueprint, every ton of carbon dioxide would be hit with a $40 tax, with the price rising over time and revenue redistributed to households in the form of quarterly dividend checks. In exchange, regulations aimed at cutting carbon dioxide emissions -- and much of the Environmental Protection Agency’s authority to regulate them -- would be eliminated.

The campaign, dubbed Americans for Carbon Dividends, aims to bolster a carbon tax-and-dividend plan advanced by prominent Republicans a year ago, using more aggressive lobbying and advertising to line up support with hopes of winning congressional passage after the 2020 elections.

Supporters tout the proposal as a market-based approach to combat climate change that would replace an onerous, unpredictable regulatory regime -- and could drive even more robust carbon dioxide reductions. Exxon Mobil, BP Plc, Royal Dutch Shell Plc and Total SA publicly backed the plan last June, joining consumer products companies and General Motors Co.

Critics say the proposed tax would punish users of natural gas, oil and coal that make up the vast majority of the energy consumed in the U.S. today.

Mike McKenna, a Republican energy strategist, said “this effort to tax energy will make people poorer, diminish the nation and have no material effect on the purported problem.”

“But,” he added, “the rich kids who used to run the Republican Party don’t really care about that.” READ MORE

Excerpt from Politico's Morning Energy: A national carbon tax could advance American economic interests and benefit the climate, according to a new paper today (June 21, 2018) from the World Resources Institute. The paper argues that an "emissions target mechanism" to a carbon tax is needed to ensure that national emissions targets are met. In order to do so, that mechanism would involve a periodic evaluation of whether greenhouse gas emissions levels are too high, and, would ensure a policy change is triggered, if so. Read the paper here. READ MORE