Cantwell and Collins enlist bipartisan support

For Immediate Release: Dec. 11, 2009

ST. PAUL – U.S. Senators Maria Cantwell (D-WA) and Susan Collins (R-ME) today introduced bipartisan “cap and rebate” legislation that would charge fees to producers of carbon emissions and return most of the revenue to American consumers. The legislation will spur job growth in clean energy technologies while reducing greenhouse gas emissions 20 percent by 2020 and 83 percent by 2050.

“This bill refocuses the national discussion on laying the foundation for a clean, low carbon economy,” J. Drake Hamilton, science policy director of Fresh Energy. “It mirrors President Obama’s campaign promise to cap carbon and cut our dependence on oil and coal with a simple mechanism to return the pollution payments to households so that they can make the transition to clean energy.”

Senator Cantwell said, “Energy is a six-trillion dollar market opportunity, and green jobs can transform the U.S. economy. But we need a signal on carbon so that this can happen. This bill provides a simple approach to getting off of carbon and on to clean energy alternatives. The CLEAR Act provides businesses and investors with a simple, predictable mechanism that will open the way to clean energy expansion while achieving America’s goals of reducing carbon emission.”

Along with the legislation, Cantwell issued a report today detailing the positive economic impact of the dividends to be returned directly to consumers. According to the report, a typical family of four would receive tax-free monthly checks from the government averaging $1,100 per year, or $21,000 between 2012 and 2030.

Cantwell and Collins highlighted the findings of a recent report by the Institute for Policy Integrity at New York University School of Law that concluded: “carbon pricing is the only signal that can cut through the noise and direct diverse economic actors towards smart, green investments – investments that will create jobs, encourage technological development, and maximize returns.”

By establishing a predictable price on the carbon associated with fossil fuels, the bill provides the business incentive needed to develop and deploy clean energy technology. The International Atomic Energy Agency estimates that over the next half-century, the investment needed to meet global energy needs and reduce greenhouse gas emissions will reach $45 trillion.

Producers would bid in monthly auctions for “carbon shares.” The resulting revenue generated by the auctions is used for two vital functions:

• 75 percent would be refunded to every individual residing legally in the United States. This dividend would more than compensate for the increase in carbon-based fuel that producers would pass on to consumers.
• The remaining 25 percent would be used exclusively toward clean energy research and development, regionally-specific assistance for communities and workers transitioning to a clean energy economy, energy efficiency programs, and reductions in non-CO2 greenhouse gases.

“The President has taken our shared emission-reduction goals to the Copenhagen conference and the response there underscores global interest tackling the problem. It also shows that there will be a highly competitive international business environment for leadership in clean-energy technology,” Cantwell said.

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ST. PAUL – U.S. Senators Maria Cantwell (D-WA) and Susan Collins (R-ME) today introduced bipartisan “cap and rebate” legislation that would charge fees to producers of carbon emissions and return most of the revenue to American consumers. The legislation will spur job growth in clean energy technologies while reducing greenhouse gas emissions 20 percent by 2020 and 83 percent by 2050.