Just before the August recess, Congressman John B. Larson (D-Conn.) introduced HR 3416, a federal carbon tax proposal that follows the basic model of Al Gore’s carbon tax recommendation.Elements:
- Covers coal, petroleum, and natural gas
- Only regulates carbon dioxide content, not other GHG emissions (the bill calls for a proposal to cover those emissions within 6 months of enactment)
- Tax starts at $15 per ton and rises at 10% faster than the cost of living adjustment each year
- Tax refunds or credits include feedstock and any offset project other than enhanced oil recovery, and all exports
- Revenues raised go into “America’s Energy Security Trust Fund”. 1/6 up to $10 billion goes to clean energy technology R&D, 1/12 goes to industry relief (declining to zero by 2017), and the remainder goes to offset payroll taxes.