July 19, 2019 – The Nevada City City Council voted 4-0 with one abstention at its regularly scheduled meeting July 10, 2019 to approve a resolution endorsing HR763 The Energy Innovation and Carbon Dividend Act (EICDA) . The request for the City Council to consider this endorsement came from the Nevada County Chapter of the Citizens’ Climate Education/Citizens’ Climate Lobby, a national non-profit organization backing the bill. “We need to take steps, and I’m proud of our city for stepping up” said Councilmember Erin Minett shortly before making her vote for the resolution.
When passed and signed into law, this legislation will place a gradually increasing fee on high-carbon content products. That money will be sent back to every American household in the form of a monthly dividend check. The EIDCA will drive down America’s carbon pollution and bring climate change under control, while unleashing American ingenuity and innovation.
Included in the City Council Agenda Packet was a preliminary analysis by The Carbon Tax Research Initiative at the Center on Global Energy Policy at the Columbia University School of International and Public Affairs, titled “Impacts of The Energy Innovation and Carbon Dividend Act.” www.energypolicy.columbia.edu
Excerpts from the analysis:
“Compared to 2005 levels, implementing EIDCA as a stand-alone policy leads to economy-wide net greenhouse gas reductions of about 32 to 33 percent by 2025, and 36 to 38 percent by 2030, according to the authors’ preliminary results. Most of the emission reductions occur in the power sector, where emissions fall 82 to 84 percent by 2030.”
“The EIDCA proposal generates roughly $70 billion in carbon tax revenues in 2020 and nearly $400 billion in 2030” according to Columbia/SIPA, authors of a recent analysis of the bill. “This translates into an annual dividend for eligible adults of about $240 in 2020 and $1350 in 2030.”
“Preliminary results showing EICDA causing average gasoline prices to increase by about 12 and 90 cents per gallon in 2020 and 2030, respectively, causing national average electricity prices to increase by about 1 and 3 cents per kilowatt hour in 2020 and 2030, respectively. The electricity price changes will vary significantly by region based primarily on the carbon intensity of electricity production.”
Lower income America will benefit the most. The lower two quintiles of our society will receive the majority (57%) of economic benefits. This policy fact addresses the disproportionate distribution of pollution and environmental risks that befall the lower income communities of America and the world. “That’s our bottom line: significant, world-changing emissions reductions, and substantial economic benefits going to the bottom two quintiles of our economy” said Dr. Daniel Richter, CCL VP of Government Affairs at the June 2019 CCL International Conference in Washington, DC.
Here is why the Nevada City City Council supports HR763:
● tremendously effective (90% reduction in emissions by 2050);
● good for public health (saves 295,000 lives in 10 years through better air quality);
● good for the economy (creates 2.1 million jobs in 10 years);
● deploys private capital and American innovation to advance clean energy technologies;
● includes a border adjustment tariff which eliminates incentive to move manufacturing overseas, and encourages all nations to price carbon;
● Revenue-neutral, free-market solution
● avoids any further regulation on covered emissions.
This policy tool is a proven way to stop the escalating emissions causing the climate disasters that are currently predicted. A carbon fee creates market-driven demand for cleaner energy technologies. It reduces US carbon emissions by correcting market distortions. It is a gradually-rising upstream fee on the carbon content of fuels, which is assessed once, at the point of production. Starts at $15 per metric ton of CO2e, increases $10 each year. Exemption for military and agricultural fuels and non-emissive uses. Rebate for carbon capture and sequestration. Fee also assessed on 10% of Global Warming Potential on fluorinated gases.
The Carbon Dividend protects people and stimulates local economies. Maintains revenue neutrality. Rebate offsets cost increases for most Americans. Allocates 100% of net revenues to the American people. Equal share to adults with SSN or TIN, half share to minors. Administered by the Treasury. Administrative costs not to exceed 2%. One-month advance payment.
The Border Adjustment ensures competitiveness of American manufacturing, eliminates incentive for companies to move manufacturing overseas. Creates economic incentive for all nations to price carbon. Carbon intensive imported goods and fossil fuels pay border carbon adjustment if country of origin does not price carbon. Exported goods and fossil fuels receive refund. Designed for WTO compliance.
The Regulatory Adjustment avoids redundant regulation on certain greenhouse gases. Prevents additional regulations on covered CO2 emissions as long as emissions targets are being met. If emissions targets are not met after 10 years, then EPA regulatory authority over these emissions would be restored. Selective – affects only certain GHG regulatory authority. CAFE vehicle efficiency standards, methane, mercury, and particulate regulations remain in place. If cumulative emissions targets aren’t hit after 10 years, regulatory authority restored.
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