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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 4, 2019 <br />TITLE: <br />ADOPT A RESOLUTION AND/OR APPROVE <br />A LETTER IN SUPPORT OF H.R. 763, THE <br />ENERGY INNOVATION AND CARBON <br />DIVIDEND ACT OF 2019 TO AIM TO <br />REDUCE CARBON POLLUTION AND <br />GREENHOUSE EMISSIONS <br />(STRATEGIC PLAN NO. 5) <br />i <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt a resolution and/or approve a letter in support of H.R. 763, the Energy Innovation and <br />Carbon Dividend Act of 2019, aimed to reduce carbon pollution and greenhouse emissions. <br />DISCUSSION <br />On January 24, 2019 United States Congressman Ted E. Deutch introduced H.R. 763, the Energy <br />and Carbon Dividend Act of 2019, (H.R. 763) which aims to reduce U.S. carbon pollution by 33 <br />percent in 10 years below 2015 levels. Ultimately, the bill seeks to reduce emissions by 90 percent <br />by 2050. If approved, H.R. 763 would exceed our commitment to the Paris Climate Agreement and <br />exceeds the Clean Power Plan reductions by three times. <br />H.R. 763 imposes a fee on the carbon content of fuels, including crude oil, natural gas, coal or any <br />other product derived from those fuels that emits greenhouse gas into the atmosphere. The fee <br />imposed on the producers or importers of the fuel is equal to the greenhouse gas content of the <br />fuel multiplied by the carbon fee rate. The rate begins at $15 in 2019, and increases by $10 each <br />year. The fee is subject to further adjustments based on progress. <br />The bill also includes exemptions for certain fuels, rebates, and border adjustment provisions. The <br />fees would be deposited into a Carbon Dividend Trust Fund, and used for expenses and dividend <br />payments to U.S. citizens or permanent residents. Dividends are paid in a pro-rata share to each <br />adult with a Social Security Number (SSN) or Taxpayer Identification Number (TIN), with a half- <br />share paid to each child. While the dividends are taxable as income, they won't factor into the <br />determination of other federal assistance programs. <br />55E-1 <br />