BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AJR 43


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          Date of Hearing:  June 27, 2016


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AJR 43  
          (Williams) - As Amended June 13, 2016


          SUBJECT:  Greenhouse gases:  climate change


          SUMMARY:  Urges the United States Congress to enact a tax on  
          carbon-based fossil fuels, as specified.


          THIS JOINT RESOLUTION:


          1)Urges the United States Congress to enact, without delay, a  
            tax on carbon-based fossil fuels.



          2)Specifies the tax should be collected once, as far upstream in  
            the economy as practical, or at the port of entry into the  
            United States; the tax rate should start low and increase  
            steadily and predictably to achieve the goal of reducing  
            carbon dioxide emissions in the United States to 80% below  
            1990 levels by 2050; all tax revenue should be returned to  
            middle- and low-income Americans to protect them from the  
            impact of rising prices due to the tax; and, the international  
            competitiveness of United States businesses should be  
            protected by using carbon-content-based tariffs and tax  
            refunds.








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          3)Includes related "whereas" statements regarding climate change  
            and a carbon tax.
          FISCAL EFFECT:  Non-fiscal


          COMMENTS: 


          1)Background.  Carbon tax (or fee) and dividend is a  
            market-based, economy-wide approach to pricing carbon and  
            reducing greenhouse gas emissions popularized by Peter Barnes  
            around 2008.  It is presented as a more simple,  
            straightforward, and effective alternative to other  
            market-based schemes, including cap-and-trade.


            In California, the Air Resources Board has adopted a  
            cap-and-regulation under the market-based compliance mechanism  
            authority granted by AB 32, a majority vote bill enacted in  
            2006.  The current cap-and-trade regulation applies through  
            2020.  A carbon tax, which would require a 2/3 vote of the  
            Legislature in California, has never advanced.


            Several fee/tax-and-divided, cap-and-dividend, and  
            cap-and-trade bills have been proposed in Congress over the  
            past 10 years, but none have passed.


          2)Author's statement:


               Currently at the federal level there are no statutes  
               addressing carbon levels in the atmosphere, or the long  
               term affects these levels are having with global climate  
               change.  The measures proposed in this resolution will  








                                                                     AJR 43


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               benefit the economy, human health, the environment, and  
               national security, even without consideration of global  
               temperatures, as a result of correcting market distortions,  
               reductions in non-greenhouse-gas pollutants, reducing the  
               outflow of dollars to oil-producing countries and  
               improvements in the energy security of the United States.   
               Phased-in carbon fees on greenhouse gas emissions (1) are  
               the most efficient, transparent, and enforceable mechanism  
               to drive an effective and fair transition to a  
               domestic-energy economy, (2) will stimulate investment in  
               alternative-energy technologies, and (3) give all  
               businesses powerful incentives to increase their  
               energy-efficiency and reduce their carbon footprints in  
               order to remain competitive.  Equal monthly dividends (or  
               "rebates") from carbon fees paid to every American  
               household can help ensure that families and individuals can  
               afford the energy they need during the transition to a  
               greenhouse gas-free economy and the dividends will  
               stimulate the economy.


               The weight of scientific evidence indicates that greenhouse  
               gas emissions from human activities including the burning  
               of fossil fuels and other sources are causing rising global  
               temperatures.  The weight of scientific evidence also  
               indicates that a return from the current concentration of  
               more than 400 parts per million ("ppm") of carbon dioxide  
               ("CO2") in the atmosphere to 350 ppm CO2 or less is  
               necessary to slow or stop the rise in global temperatures.   
               Further increases in global temperatures pose imminent and  
               substantial dangers to human health, the natural  
               environment, the economy, national security, and an  
               unacceptable risk of catastrophic impacts to human  
               civilization.  


          REGISTERED SUPPORT / OPPOSITION:










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          Support


          Citizens Climate Lobby, Santa Barbara Chapter (sponsor)




          Opposition


          None on file




          Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092