Faith Principles and Carbon Pricing Rebecca Eastwood Columban

Faith Principles and Carbon Pricing Rebecca Eastwood, Columban Center for Advocacy and Outreach reastwood@columban. org

Action on Climate More and more people calling for action on climate Number of new polls show climate change as top or rising priority among voters of both parties Congressional momentum: House of Representatives held over 50 hearings so far on climate/environment Carbon pricing: not new but gaining traction MANY ways to structure carbon pricing policy How do we faithfully evaluate?

Carbon Pricing & Faith Community U. S. must demonstrate global leadership & accountability on climate change Part of this is reducing GHG emissions domestically Carbon pricing is one tool to do this Must function to reduce GHG emissions & use any revenue in line with faith principles “Faced with a climate emergency, we must take action accordingly, in order to avoid perpetrating a brutal act of injustice towards the poor and future generations. ” Pope Francis address on ‘Energy Transition and Our Common Home’ at meeting of oil & gas executives

Guiding Principles Washington Interreligious Staff Community Energy & Ecology Working Group Stewardship: have a responsibility to be caretakers of natural world & preserve ecosystems for future generations Sustainability: called to cultivate and maintain a healthy & abundant planet and seek a sustainable future through biological and social systems that support life Justice: strive for justice as all people are children of God but communities that feel worst impacts of climate change are often least able to respond Dialogue: serve as bridge-builders & find common ground in order to advance united action nationally and internationally

Questions to Evaluate the Overall Policy: Does the policy hold harmless a variety of vulnerable communities, including communities of color, rural, indigenous, and undocumented communities, those with disabilities or chronic health conditions, those not in the wage economy, and those living in poverty? Does the policy protect communities that have been most impacted by the extraction of fossil fuels? Does the policy address communities that are directly harmed by climate impacts? Is the process for identifying and implementing solutions participatory and transparent for all stakeholders? Was there an adequate consultation process?

Evaluating a Revenue Mechanism: how the money collected from the price is used/distributed Reaching the most vulnerable Technology investments Just transition & frontline communities Adapting to renewable sources of energy Mitigation and adaptation financing

Carbon pricing Emily Wirzba, Friends Committee on National Legislation Emily@fcnl. org

Components of carbon pricing: Where do you enact the fee? How much do you charge per ton of carbon dioxide/ghg emissions? What do you do with the revenue? Dividend to households Investment in clean energy/R&D How much does the price increase? Infrastructure What do you do if it isn’t working? Climate adaptation How do you ensure that there is no border leakage? Low-income assistance Job creation Tax swaps …so much more! Do you change existing regulations? How do you address environmental justice concerns?

Current legislation: H. R. 763 – Energy Innovation and Carbon Dividends Act of 2019 Bipartisan, led by Reps. Ted Deutch (FL, D) and Francis Rooney (FL, R). 59 members supporting in total (as of July 26, 2019). $15/metric ton of CO 2 starting in 2019, increasing by $10/year. Increases to $15/year if goals aren’t being met. Will decrease emissions by 33% below 2015 levels in 10 years. Ultimately, the bill seeks to reduce emissions by 90 percent by 2050. Revenue: returned as a dividend to each household. 10 year moratorium on select EPA regulations. Exemptions for fuels used for agricultural purposes, fuels used by the Armed Forces, and includes rebates for facilities that capture and sequester carbon dioxide.

Current legislation: S. 1128, the American Opportunity Carbon Fee Act of 2019 Democrat only, led by Sen. Sheldon Whitehouse (D-RI) $52/metric ton of CO 2 starting in 2020, increasing by 6% plus inflation each year. Will reduce emissions by 51% by 2029, below 2005 levels. Revenue: Annual tax credit for U. S. workers equal to 6. 2% of their earned income, or $900. Payments to social security beneficiaries, and other retired and disabled Americans. $10 billion for state cost mitigation grants to fund transition to low-carbon economies: helping low-income & rural households with energy expenses, providing job training & worker transition assistance (prioritizing those in fossil-fuel related industries), and assisting with states dealing with climate impacts & the transition to a low-carbon economy. EPA regulations are not touched.

Current legislation: H. R. 4058, the Stemming Warming and Augmenting Pay (SWAP) Act Bipartisan, Rep. Francis Rooney (R, FL-19) and Rep. Dan Lipinski (D-IL-03) $30/ ton of CO 2 starting in 2021, increasing by 5% plus inflation each year. The price will automatically increase by $3/ton every two years if emissions reductions are behind goals. Will aim to reduce energy-related carbon pollution by approximately 41% under 2005 levels by 2030. Revenue: 70% to reduce individual, employer, or self-filing payroll taxes. 10% for social security beneficiaries. 20% creates a Carbon Trust Fund, funding state block grants to offset energy costs for low- income households, climate adaptation, energy efficiency, and advanced R&D programs. 12 year moratorium on select greenhouse gas emissions.

Current legislation: S. 2284/H. R. 4050, the Climate Action Rebate Act of 2019 Democrat only, Sen. Chris Coons (D, DE), Sen. Diane Feinstein (D, CA), and Rep. Jimmy Panetta (D, CA-20) $15/metric ton of CO 2, starting in 2020, increasing by $15 each year. If the emissions targets are not met in a given year, the fee is raised to $30. Designed to reduce U. S. carbon emissions 55% by 2030 and 100% by 2050 (compared to 2017 emissions). Revenue: 70% for a monthly dividend for low and middle-income families. 20% for infrastructure, including funding the Highway Trust Fund, community resiliency, climate adaptation and more. 5% for energy innovation and R&D. 5% for transition assistance for those affected by disproportionately high energy costs, workers in fossil fuel-intensive industries, and communities dependent on those industries. No change to EPA regulations.

Current legislation: H. R. 3966, the Raise Wages, Cut Carbon Act of 2019 Bipartisan, Rep. Dan Lipinski (D, IL-03) and Rep. Francis Rooney (R, FL-19) $40/ton of CO 2 starting in 2020, increasing by 2. 5% plus inflation each year. Will slowly increase the price on carbon until the U. S. achieves an emissions level equal to 20% of our 2005 emissions levels. Revenue: 84% to offset the payroll tax. 10% for social security beneficiaries. 5% for the Low-Income Home Energy Assistance Program (LIHEAP). 1% for the Weatherization Assistance Program (WAP). Prevents the EPA from enforcing rules limiting certain greenhouse gas emissions on covered fuels/gases until at least 2030.

Legislative Outlook Any legislation currently need a majority of House votes, 60 votes in the Senate (to overcome the filibuster) and a signature from the President to become law. We don’t expect votes in Congress on carbon pricing in the 116 th Congress. …but this is an excellent time to educate your Members of Congress on the issue, raise your concerns/priorities with current bills, and build up co-sponsors on legislation. Building a foundation! …and there is more to come! We are expecting two more carbon pricing bills to be introduced after the August congressional recess.