The new infrastructure bill from the Biden administration is getting most of the attention in the media at the moment. It focuses on climate change and jobs so will be a good topic to discuss in another post. However, today I wanted to talk about another new bill proposal – the Energy Innovation and Carbon Dividend Act.
This bill was reintroduced last week by Rep Ted Deutch, a congressman from Florida. It imposes a $15 fee per metric ton of CO2 (upstream at point of sale of fossil fuel). The revenue from this fee is then distributed to families as a monthly dividend. This enables citizens to cover any higher energy costs.
The bill is designed to help us account for the cost of carbon to our environment, communities, and public health. By counting this cost, it should lead to lower carbon emissions and accelerate the transition to a clean energy.
There seems to be growing support for a carbon tax because people, businesses and legislators and recognizing the need to address climate change. However, we also need to think through how to ensure that revenue is most effectively used and this bill proposes that the dividend for Americans is the best option.
I encourage you to reach out to your representative and ask them to co-sponsor or support this bill. If you’d like more information on the bill, you can find that here: