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

Answer: ย H.R.2307, theย Energy Innovation and Carbon Dividend Act of 2021ย [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 CO2ย 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] ย 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 2019โ€™s H.R.763, remains a powerful and equitable framework to ย 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. โ€œH.R.2307 โ€“ Energy Innovation and Carbon Dividend Act of 2021.โ€ Library of Congress (01 Apr 2021).
  2. โ€œFast Facts: U.S. Transportation Sector Greenhouse Gas Emissions 1990-2015.โ€ U.S. EPA Office of Transportation Air Quality. Report No. EPA-420-F-17-013 (Jul 2017). Calculation based on โ€œU.S. Non-Transportation Mobile GHG Emissions โ€“ Agricultural Equipment, 2015,โ€ p. 2.
  3. โ€œFiscal Year 2017ย Operational Energy Annual Report.โ€ย Office of the Under Secretary of Defense for Acquisition and Sustainment (July 2018).
  4. โ€œSummary for Policymakers of IPCC Special Report on Global Warming of 1.5ยฐC Approved by Governments.โ€ Intergovernmental Panel on Climate Change (08 Oct 2018).
  5. โ€œGreen Climate Fund.โ€ Wikipedia (24 Apr 2021).

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