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Home My WebLink About55E - RESO LETTER SUPPORT HR 763REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 4, 2019 TITLE: ADOPT A RESOLUTION AND/OR APPROVE A LETTER IN SUPPORT OF H.R. 763, THE ENERGY INNOVATION AND CARBON DIVIDEND ACT OF 2019 TO AIM TO REDUCE CARBON POLLUTION AND GREENHOUSE EMISSIONS (STRATEGIC PLAN NO. 5) i CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution and/or approve a letter in support of H.R. 763, the Energy Innovation and Carbon Dividend Act of 2019, aimed to reduce carbon pollution and greenhouse emissions. DISCUSSION On January 24, 2019 United States Congressman Ted E. Deutch introduced H.R. 763, the Energy and Carbon Dividend Act of 2019, (H.R. 763) which aims to reduce U.S. carbon pollution by 33 percent in 10 years below 2015 levels. Ultimately, the bill seeks to reduce emissions by 90 percent by 2050. If approved, H.R. 763 would exceed our commitment to the Paris Climate Agreement and exceeds the Clean Power Plan reductions by three times. H.R. 763 imposes a fee on the carbon content of fuels, including crude oil, natural gas, coal or any other product derived from those fuels that emits greenhouse gas into the atmosphere. The fee imposed on the producers or importers of the fuel is equal to the greenhouse gas content of the fuel multiplied by the carbon fee rate. The rate begins at $15 in 2019, and increases by $10 each year. The fee is subject to further adjustments based on progress. The bill also includes exemptions for certain fuels, rebates, and border adjustment provisions. The fees would be deposited into a Carbon Dividend Trust Fund, and used for expenses and dividend payments to U.S. citizens or permanent residents. Dividends are paid in a pro-rata share to each adult with a Social Security Number (SSN) or Taxpayer Identification Number (TIN), with a half- share paid to each child. While the dividends are taxable as income, they won't factor into the determination of other federal assistance programs. 55E-1 Adopt Resolution and/or Letter in Support of the Energy and Carbon Dividend Act of 2019 June 4, 2019 Page 2 In 2007, the City of Santa Ana signed the U.S. Mayors' Climate Protection Agreement, committing to reduce greenhouse gas (GHG) emissions. Santa Ana, in addition to more than 1,000 local governments worldwide, joined International Council for Local Environmental Initiatives (ICLEI) — Local Governments for Sustainability, an association for local governments to share knowledge and successful strategies toward increasing local sustainability. ICLEI provides a CAP framework and methodology for local governments to identify and reduce GHG emissions: (1) Conduct an inventory and forecast of local GHG emissions; (2) Establish GHG emissions reduction targets; (3) Develop a CAP for achieving the emissions reduction targets; (4) Implement the CAP; and (5) Monitor and report on progress. On December 15, 2015, the Santa Ana City Council approved a Climate Action Plan (CAP) to demonstrate its leadership in sustainability efforts. By completing the CAP, the City developed a roadmap to save energy and resources, improve quality of life, and quantify achievement of Council -approved GHG emissions reduction goals. With a 2008 baseline of 5.5 metric tons of CO2 emissions per capital, Council approved reduction targets at 15 percent of 2008 levels by 2020, and 30 percent of 2008 levels by 2035. At the May 21, 2019 City Council meeting, the City Council provided direction to staff to prepare a resolution (Exhibit 1) and letter (Exhibit 2) of support for H.R. 763, the Energy Innovation and Carbon Dividend Act of 2019. This resolution and/or letter would be an extension of the efforts of the State of California, and the City of Santa Ana, in establishing policies and programs to preserve and protect its environment, combat climate change, and provide for the health and well-being of all people. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 — Community Health, Livability, Engagement & Sustainability. ENVIRONMENTAL IMPACT There are no environmental impacts associated with this action. FISCAL IMPACT There is no fiscal impact at this time. Exhibits: 1. Resolution Supporting the Energy and Carbon Dividend Act of 2019 2. Letter of Support for H.R. 763 to Congressman Ted E. Deutch (author) 55E-2 EXHIBIT 1 LAR 6/4119 RESOLUTION NO.2019-XXX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA IN SUPPORT OF HR 763 THE ENERGY INNOVATION AND CARBON DIVIDEND ACT OF 2019 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. WHEREAS, according to the Environmental Protection Agency (EPA), global carbon emissions from fossil fuels have significantly increased since 1900. Since 1970, carbon dioxide emissions have increased by about 90%. B. WHEREAS, the United States is one of the top global carbon dioxide emitters. C. WHEREAS, the continued release of greenhouses gases into the atmosphere is a real and growing concern; D. WHEREAS, failing to reduce and/or limit the amount of greenhouse gas emissions into the atmosphere could have severe ramifications for the world's environment; E. WHEREAS, in January 2019, Representative Deutch introduced HR 763 a bill to create a Carbon Dividend Trust Fund for the American people in order to encourage market -driven innovation of clean energy technologies and market efficiencies which will reduce harmful pollution and leave a healthier, more stable, and more prosperous nation for future generations. F. WHEREAS,HR 763 also called the Energy Innovation and Carbon Dividend Act of 2019 enjoys bipartisan support in the United States House of Representatives; G. WHEREAS, HR 763 aims to reduce carbon emissions in the United States by 33% in 10 years and 90% by the year 2050. Resolution No. 2019-XXX Page 1 of 3 55E-3 H. WHEREAS, HR 763 would impose a fee for the carbon content in covered fuels including crude oil, natural gas, coal, or any other product derived from crude oil, natural gas, or coal, which shall be used to emit greenhouse gases to the atmosphere. The fee is equal to the greenhouse gas content of the fuel times by the carbon fee rate. The rate would begin at $15 in 2019 and increase $10 yearly. WHEREAS, the fee would apply to covered entities Including refineries, importers of any petroleum or petroleum product, any coal mining operation, any importer of coal, any entity entering pipeline quality natural gas into the natural gas transmission system, and any importer of natural gas, any entity required to report the emission of a fluorinated gas and any entity or class of entities which, as determined by the Secretary of State, is transporting, selling or otherwise using a covered fuel in a manner which emits a greenhouse gas to the atmosphere and which is not covered by the carbon -fee, the fluorinated greenhouse gas fee, or the carbon border fee adjustment. J. WHEREAS, the fees are to be deposited into a Carbon Dividend Trust Fund and used for expenses and dividend payments to U.S. citizens and permanent residents. K. WHEREAS, HR 763 is co -sponsored by several Orange County Representatives including Representative Harley Rouda, Representative Gil Cisneros, and Representative Katie Porter. Section 2. The City Council of the City of Santa Ana hereby finds determines and declares that the City of Santa Ana supports the adoption of HR 763, the Energy and Carbon Dividend Act of 2019 Section 3. If any surcharge or fee, section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed and adopted this Resolution, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. Resolution No. 2019-XXX Page 2 of 3 55E-4 Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 4th day of June, 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: Ca.LL� ✓ �13�-11 Laura A. Rossini Senior Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Acting Clerk of the Council, do hereby attest to and certify that the attached Resolution No. 2019-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on June 4, 2019. Date: Acting Clerk of the Council City of Santa Ana Resolution No. 2019-XXX Page 3 of 3 55E-5 55E-6 EXHIBIT 2 MAYOR Miguel A. Pulido m oul ido(a)santa-ana.om MAYOR PRO TEM Juan Villegas Ward 5 ivi Ilegas(a)sa nta-a na.o rg COUNCILMEMBERS Vicente Sarmiento Ward 1 vsarmiento n.sa nta-ana.org David Penaloza Ward 2 d oenaloza(a)santa-ana. org Jose Solorio Ward 3 isolodo(a)santa-ana.org Vacant Ward 4 Cecilia Iglesias Ward 6 ciglesias0.)sa nta-an a.org SAX ra vCITY OF SANTA .z. t. V' - i June 4, 2019 The Honorable Theodore Deutch U.S. House of Representatives 2447 Rayburn Office Building Washington, DC 20515 RE: H.R. 763, the Energy Innovation and Carbon Dividend Act of 2019 - SUPPORT Dear Congressman Deutch: On behalf of the City of Santa Ana, I am writing to express support for H.R. 763, the Energy Innovation and Carbon Dividend Act of 2019. The City of Santa Ana has a strong commitment to dynamic and innovative sustainability initiatives, which are making a difference in our community. The City has developed a climate action plan which provides a framework for reducing emissions, managing our natural resources, and includes goals and measures that will move us toward becoming a more sustainable city for future generations. By using our resources wisely, we not only improve the environment, but also improve the quality of life for our community. The Energy Innovation and Carbon Dividend Act would create a Carbon Dividend Trust fund for the American people in order to encourage market - driven innovation of clean energy technologies and market efficiencies which will reduce harmful pollution and leave a healthier, more stable, and more prosperous nation for future generations. The potential to implement a pricing mechanism that is simple and fair is a step in the right direction. The fee on carbon -emitting fuels, like coal, oil or gas, assessed at the mine, the well, or the port of entry would allow for the return of net revenue back to the American people. Carbon dividends are monthly checks or direct deposits to households, allocated in equal shares. Dividends will generate an increase in real disposable personal income, while shifting the cost CITY ATTORNEY CITY MANAGER ACTING CLERK OF THE COUNCIL Sonia R. Carvalho Kristine Ridge Noma Mitre -Ramirez 20 CIVIC CENTER PLAZA - P.O. 13559 MT SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org LETTER TO CONGRESSMAN DEUTCH June 4, 2019 of carbon -related externalities from consumers back to the businesses that generate them. The City of Santa Ana shares the goal of ensuring fairness to consumers, transparency in emissions pricing, and a reliable commitment to environmental integrity that our City strives for every day. For these reasons, the City of Santa Ana is in support of H.R. 763. Sincerely, Miguel Pulido Mayor of Santa Ana 55E-8