Consideration and Adoption of Resolution No. 2020-40:  A Resolution of the Flagstaff City Council urging the United States Congress to pass carbon fee and dividend legislation.

On September 5, 2017 City Council adopted resolution 2017-31, which urged the United States Congress to pass legislation that would establish a revenue-neutral fee on carbon emissions. At the time resolution 2017-31 was adopted it did not identify specific federal legislation. Since then H. R. 763, the Energy Innovation and Carbon Dividend Act legislation, was introduced in the House on January 24, 2019.

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 will be used so as to emit greenhouse gases into the atmosphere.

The fee is imposed on the producers or importers of the fuels and is equal to the greenhouse gas content of the fuel multiplied by the carbon fee rate. The rate begins at $15 in 2019, increases by $10 each year, and is subject to further adjustments based on the progress in meeting specified emissions reduction targets. The bill also imposes a specified fee on fluorinated greenhouse gases.

The bill includes

• exemptions for fuels used for agricultural or non-emitting purposes,
• exemptions for fuels used by the Armed Forces,
• rebates for facilities that capture and sequester carbon dioxide, and
• border adjustment provisions that require certain fees or refunds for carbon-intensive products that are exported or imported.

The fees must be deposited into a Carbon Dividend Trust Fund and used for administrative expenses and dividend payments to U.S. citizens or lawful residents. The fees must be decommissioned when emissions levels and monthly dividend payments fall below specified levels.

The bill also suspends certain regulations that limit greenhouse gas emissions. The suspensions expire if the emissions targets established by this bill are not reached after a specified time period.

The Flagstaff chapter of the Citizens’ Climate Lobby requests that the United States Congress enact H. R. 763.  

COUNCIL GOALS:

Take meaningful climate action

REGIONAL PLAN:

Policy E&C.2.1. Encourage the reduction of all energy consumption, especially fossil-fuel generated

energy, in public, commercial, industrial, and residential sectors.

Policy E&C.2.2. Promote investments that strengthen climate resiliency.

Policy E.1.10. Incentivize energy efficiency and renewable energy technologies in construction projects.

Policy E.2.1. Promote renewable energy sources that reduce demand upon fossil fuels and other forms

of generation that produce waste.

Policy E.2.5. Pursue, promote, and support utility-scale renewable energy production such as biomass

facilities, solar electricity, wind power, waste-to-energy, and other alternative energy technologies.

CAAP:

Reduce greenhouse gas emissions.

Yes, City Council passed Resolution 2017-31 on September 5, 2017.