Policy Recommendation # 1: Put a Price on Carbon

Congress should put a price on carbon dioxide emissions either through a carbon tax or a cap-and-trade program, starting at a level commensurate with science-based targets and rising steadily through 2030. The price should apply at the source and should target large-scale high-emitting facilities like power plants and refineries. This would begin the process of internalizing the cost of carbon emissions to the U.S. economic system and incentivizing shifts to low- and zero-emitting sources. Any carbon tax program should be administered by the Internal Revenue Service (IRS) in conjunction with Environmental Protection Agency (EPA) and cap and trade programs should be regulated by a separate body under EPA.

Across the U.S., thirty percent of the population live in states where there is some form of carbon pricing, though the systems are inconsistent and not federally regulated. A top-down mechanism to provide a consistent price on carbon across the nation would level the playing field between businesses in different regions while incentivizing those businesses to shift to lower emitting sources and invest in those technologies.

The advantage of a cap-and-trade system is that the emissions of regulated entities are necessarily capped; so, the total amount emitted would be required to decline over time, following the path of implementation set by Congress.

The revenue raised by the tax or allowance auction could be used to fund the expansion of mitigation and resilience measures targeted to specifically benefit communities hardest hit by the climate crisis.

The main barrier to the implementation of a price on carbon is political: it is strongly opposed by many Republican lawmakers as well as some Democrats. Early in 2020, Republicans in the Oregon state legislature disrupted voting procedures to stymie a carbon pricing bill that otherwise had relatively strong support among Democrats and voters, showing they would go to great lengths to prevent the passage of such legislation. However, of the menu of climate mitigation policies on the table, carbon pricing policies are often much more attractive to Republicans due to their market-based nature.

Take Action: Contact
Write to your members of Congress to show support for carbon pricing legislation.

Find your Representative and their contact information here.

Find your Senators and their contact information here.

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Policy Recommendation # 2: Reinstate and Strengthen the Clean Power Plan

Under the Obama Administration, the EPA instated the Clean Power Plan, which limited emissions from newly-constructed power plants and was projected to reduce emissions 32% by 2030. The Biden Administration should instate a similar plan, but include provisions for expanded renewable generation like large-scale solar PV, offshore wind generation, and carbon capture and sequestration to cut emissions from power plants 50% by 2030. Congress can support this by expanding the Clean Air Act to cover carbon emissions, passing legislation to lower emissions limits from power plants over time, and expanding incentives like tax credits and rebates to generators of renewable electricity.

A clean electricity sector is essential to decarbonizing the nation’s economy. Accounting for roughly a third of U.S. emissions, power generation is a major source of emissions in the United States and also represents a sector for which there exists a broad suite of fast-growing low- and zero-carbon alternatives.

The main obstacles to moving forward in limiting carbon emissions from power generation are opposition from the fossil fuel industry and legal challenges to EPA’s authority to regulate greenhouse gas emissions. Opposition from the fossil fuel industry remains as fierce and insidious as it has been over the last several decades, but many major fossil fuel companies in the United States are starting to shift toward reducing the carbon intensity of their products, expanding renewable energy generation, and making emissions reduction goals. Through proper incentives and by working with the industry, Congress and the Biden Administration might gain support for regulations that provide an appropriate time horizon for the energy transition, thus providing market certainty over the next decade.

The second obstacle can be solved by an act of Congress. Since the Obama Administration’s instatement of the Clean Power Plan, many states across the country sued EPA claiming it had no authority under the Clean Air Act to regulate greenhouse gas emissions. However, by amending the Clean Air Act to include greenhouse gases, Congress could expand EPA’s authority definitively to regulate carbon emissions.

Take Action: Contact

EPA Administrator (when confirmed) Michael Regan

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Policy Recommendation # 3: Electrification of Transportation

Congress should set a national goal of electrifying America’s passenger transportation system (including passenger vehicles and public transit) by 2035 and make all transportation carbon-neutral by 2050. Incentives for electric vehicle (EV) adoption include expanding and strengthening tax credits, expanding public EV charging infrastructure across the country, increasing funding for public transit and last-mile transit options, electrifying the federal fleet – including the U.S. Postal Service – and investing in research and development into low-carbon fuels for heavy-duty vehicles and aviation.

In 2016, transportation surpassed power as the highest-emitting sector in the country. At the same time, momentum is picking up for EV proliferation and advances in battery technology are bringing down costs. Electrification of passenger transportation is essential to reducing greenhouse gas emissions nationally and expanding public transit and public EV charging infrastructure will in turn support economic growth and resilience in marginalized communities.

Cost is a large factor in a family’s choice of vehicle and the combination of high EV costs and limited access to charging infrastructure prevents many families from having the option to choose an EV. Additionally, the pandemic has decimated state and municipal budgets and significantly reduced ridership of public transit. However, strong public policy and incentive structures can help overcome these barriers.

Take Action: Contact
Write to your members of Congress to show support for transportation electrification.

Find your Representative and their contact information here.

Find your Senators and their contact information here.

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This post was submitted by U.S. Country Manager Stephanie Gagnon