Congressman Jim McDermott (D-WA) today introduced the Managed Carbon Price Act of 2015 (H.R. 972), legislation that would help cut harmful carbon emissions and begin transitioning America towards a clean energy economy by putting a price on environmentally damaging emissions contributing to climate change. Unlike previous carbon tax initiatives, this unique legislation creates a flexible price system that provides emissions price certainty by accounting for volatility in the energy markets, requiring specific emissions reductions, and addressing any increase in energy costs with dividend payments to the public.
“The evidence is crystal clear that climate change is real and already wreaking irreparable harm to our planet,” said Congressman Jim McDermott. “With 2014 registering as the hottest year on record, it’s time that Congress gets serious about protecting our planet’s future by curbing carbon emissions that are polluting our air, warming our oceans and creating destructive weather patterns across the globe. Today, I’m putting forward a commonsense proposal to responsibly reduce carbon emissions and incentivize American businesses to transition to a clean energy economy, while protecting American consumers and middle class families.”
The Managed Carbon Price Act (H.R. 972) would:
Sets specific greenhouse gas (GHG) emissions reduction targets to reduce emissions to 80% below 2005 levels by 2060.
Requires producers of GHG emitting substances to purchase permits directly from Treasury.
Sets the 2016 price at $12.50 per metric ton of CO2. Thereafter, requires the Secretary of the Treasury to set the annual permit price – denominated in ¼ ton CO2 Equivalent.
Requires publication of permit prices 5 years in advance, with requirements to ensure price certainty for producers.
Allocates 100% of revenue going to US Residents as dividends to offset increased energy costs.
Congressman McDermott filed a similar version of this legislation in the 111th Congress. To see a Section-by-Section for the Managed Carbon Price Act, click here.