Carlos Curbelo
U.S. Rep. Carlos Curbelo (R-FL), co-chairman and co-founder of the House Climate Solutions Caucus, has proposed a bill that would eliminate certain fuel excise taxes and impose a tax on greenhouse gas emissions to provide revenue for maintaining and building American infrastructure.
“This bill captures the political energy of the moment by not only seeking to drastically reduce carbon emissions, but also funding much-needed infrastructure modernization in our country,” Rep. Curbelo said during a July 23 event hosted by Columbia University’s Center for Global Energy Policy, which focused on the energy, economic and emissions effects of the congressman’s proposal, as well as carbon pricing more broadly.
The Modernizing America with Rebuilding to Kick-start the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act, or the MARKET CHOICE Act, H.R. 6463, would surpass obligations outlined in the Paris Climate Change Agreement, which nations signed in 2015 pledging to limit the global average temperature rise to as close as possible to a maximum 2 degrees Celsius (3.6 degrees Fahrenheit). U.S. President Donald Trump last June removed the United States from the Paris accord, but in February said he would reconsider if the agreement were changed to include what he considers to be more favorable terms.
“Elected officials owe it to every American, and especially to younger generations who are understandably concerned about the future, to work on a comprehensive solution to mitigate and adapt to climate change,” said Rep. Curbelo, who introduced the bill on July 23.
H.R. 6463, which is cosponsored by U.S. Rep. Brian Fitzpatrick (R-PA), would steer the bulk of the revenue generated, $285 billion or 70 percent, to the Highway Trust Fund. An additional 10 percent would go to states in the form of grants for low-income households, while 5 percent would be directed to chronic coastal flooding mitigation and adaptation projects, according to a one-page summary of the legislation provided by the congressman’s staff.
Specifically, H.R. 6463 proposes a carbon tax swap for a federal gas tax. The bill would amend the tax code to eliminate the federal gas tax and would require that emissions levels from taxed sources, including cumulative levels, be reported annually, according to the summary. Every two years, an automatic $2 per ton increase would occur if emissions reductions are behind goals.
Points of taxation, according to the summary, would be coal burning electricity generating plants that are built close to a coal mine; refinery output; gas processing plants; owners/operators of certain industrial facilities across an initial list of 19 sectors, including steel, cement, aluminum, glass, and semiconductors; owners/operators of facilities that make or import certain products, such as ethanol, biodiesel, industrial carbonates, urea, and soda ash; and owners/operators of facilities that burn or import biomass.
By proposing the elimination of “regressive, inefficient and discriminatory taxes like the gasoline tax and the aviation fuel tax,” according to a statement from Rep. Curbelo’s office, H.R. 6463 would ensure all Americans are contributing their fair share to modernizing the nation’s infrastructure.
Rep. Fitzpatrick called H.R. 6463 “an important step to reduce carbon emissions that are contributing to atmospheric change, rising sea levels, and more intense natural disasters.”
“This legislation would modernize America’s infrastructure by sparking investment in our roads, bridges and energy grid while eliminating a regressive gas tax,” Fitzpatrick said, adding that the bill promotes sustainability via a science-driven approach.
Among numerous provisions, H.R. 6463 also aims to support U.S. businesses by proposing to suspend the abilities of the Environmental Protection Agency (EPA) to finalize and enforce Clean Air Act regulations on greenhouse gas emissions, and would impose a “border tax adjustment” on imported goods in an amount equal to increased costs paid by comparable U.S. products; exporters would receive a rebate equal to the tax.
Rep. Curbelo thinks the bill will be attractive to Democrats and Republicans.
“Despite those invested in the depressing paradigm of bipolar politics who will dismiss this effort summarily, I look forward to the important debate this proposal will spark, and I encourage all my colleagues to give it serious consideration and offer constructive criticisms and ideas to move this conversation forward,” the lawmaker said.
In fact, scholars pointed out in an analysis of H.R. 6463 released this month that the proposal’s price on U.S. carbon dioxide emissions “is especially notable because Republicans, who currently control the U.S. Senate, House of Representatives, and presidency, have not proposed national carbon pricing legislation in nearly a decade.”
“A carbon price is widely viewed as a necessary part of a cost-effective national strategy to address the risks of climate change,” according to the independent paper released as part of the Carbon Tax Research Initiative of the Columbia University SIPA Center for Global Energy Policy (CGEP), which is a collaboration between scholars at CGEP, the Rhodium Group, and the Baker Institute for Public Policy at Rice University.
The scholars highlighted that the proposal would reduce carbon emissions by 27 percent to 32 percent by making reductions in net greenhouse gas emissions levels by 2025, and create 30 percent to 40 percent reductions by 2030.
H.R. 6463 has been referred for consideration to seven House committees: Ways and Means; Energy and Commerce; Natural Resources; Education and the Workforce; Transportation and Infrastructure; Science, Space, and Technology; and Agriculture.