Comparing the 2021 bill (H.R.2307) with the 2019 bill (H.R.763)

Comparing the 2021 bill (H.R.2307) with the 2019 bill (H.R.763)

Laser Talk

Question:  How does the 2021 Energy Innovation and Carbon Dividend Act differ from the 2019 version?

Answer:  H.R.2307, the Energy Innovation and Carbon Dividend Act of 2021 [1] is similar in most respects to H.R.763, the bill introduced by Ted Deutch in 2019. As before, it imposes a carbon fee starting at $15 per metric ton of CO2 equivalent emissions and increases by $10 per metric ton each year, with a provision to bump it up by $15 per metric ton if emissions targets are not being met. Covered fuels still include coal, oil, natural gas, and their derivatives, except for certain exempted farm and military fuels. [2,3]  All net revenue is still sent to U.S. households as a monthly carbon cash back payment (carbon dividend). Both versions include a border carbon adjustment.

There are some notable differences:

  • The 2050 emission target is now net zero, and 2010 has been adopted as a reference year for consistency with the IPCC Special Report. [4]
  • The temporary suspension of certain GHG regulations under the Clean Air Act has been dropped.
  • The inflation adjustment of the carbon fee has been strengthened to apply to the entire fee, not just the annual increase.
  • Refunds for carbon capture and sequestration (CCS) have been expanded to allow aggregation of CO2 from multiple sources and to include bio-derived CO2 under certain conditions.
  • Surplus border carbon adjustment revenue, if any, will go to the Green Climate Fund, [5] and some other language was changed to further ensure complete harmony with WTO rules.
  • The NAS study of carbon fee effectiveness will be completed after five years instead of 10.

H.R. 2307, the 2021 successor to 2019’s H.R.763, remains a powerful and equitable framework to  fulfill the mitigation goals toward which CCL has been working since our founding in 2007. More than ever, it merits our enthusiastic support.

In a Nutshell: The 2021 Energy Innovation and Carbon Dividend Act now sets a launch year of 2022, revises annual targets to reach net zero emissions by 2050, and drops a temporary pause in enforcement of certain GHG regulations.

  1. “H.R.2307 – Energy Innovation and Carbon Dividend Act of 2021.” Library of Congress (01 Apr 2021).
  2. “Fast Facts: U.S. Transportation Sector Greenhouse Gas Emissions 1990-2015.” U.S. EPA Office of Transportation Air Quality. Report No. EPA-420-F-17-013 (Jul 2017). Calculation based on “U.S. Non-Transportation Mobile GHG Emissions – Agricultural Equipment, 2015,” p. 2.
  3. “Fiscal Year 2017 Operational Energy Annual Report.” Office of the Under Secretary of Defense for Acquisition and Sustainment (July 2018).
  4. “Summary for Policymakers of IPCC Special Report on Global Warming of 1.5°C Approved by Governments.” Intergovernmental Panel on Climate Change (08 Oct 2018).
  5. “Green Climate Fund.” Wikipedia (24 Apr 2021).

This page was last updated on 05/04/21 at 23:25 CDT.