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