Daily on Energy: The world will still thirst for fossil fuels in 2040 (August 5, 2019)

Josh Siegel
August 5, 2019

DEMOCRAT JOHN LARSON INTRODUCES CARBON TAX BILL FUNDING INFRASTRUCTURE PROJECTS: Democratic Representative John Larson of Connecticut added to a slew of recent carbon tax bills on Friday, introducing legislation that would spend most of the tax’s revenue on infrastructure investments.

Larson’s “American Wins Act” would impose a $52 per ton carbon tax, rising 6% annually above inflation and generating $2.3 trillion over 10 years. It dedicates more than half the revenue to infrastructure spending, including for traditional projects like roads and bridges, and also supporting “green” projects such as levees and energy efficiency.

The rest of the revenue would fund a hybrid of things, including clean energy research and development, health and pension benefits for people living in fossil-fuel dependent communities, and on rebates for low-income households to help pay for higher energy costs from the carbon tax.

Larson projects the bill to cut greenhouse gas emissions 52% in 10 years, “laying the groundwork” for reaching net-zero emissions by 2050.

“The America Wins Act would reduce greenhouse gas emissions above and beyond our Paris Climate Accords commitments, while funding historic investments in rebuilding America’s infrastructure and combating climate change,” Larson said.

Larson’s legislation is among a handful of carbon tax bills introduced over recent weeks, including bipartisan proposals by Republican Francis Rooney of Florida and Dan Lipinski of Illinois that would use most of the revenue to cut payroll taxes.

Columbia University’s Center on Global Energy Policy has published a helpful primer comparing the various carbon tax bills, and showing how they would allocate revenue.