A fee is added to carbon based fuels based on the amount of carbon they contain. The fee is collected upstream, at the source (well, mine, port of entry). This fee starts at $15 per ton of fossil CO2 emitted, and increases steadily each year by $10 per ton, until total U.S. emissions have been reduced to 10% of U.S. emissions in 1990.
The plan is “revenue neutral” which means the government doesn’t keep any of the fee revenue. 100% of the money collected is returned to American households on an equitable basis. Under this plan 66% of all households would break even or receive more in their dividend check than they would pay for the increased cost of energy, thereby protecting the poor and middle class.
Clean energy is cheaper than fossil fuels within a decade. A predictably increasing carbon price will send a clear market signal which will unleash entrepreneurs and investors in the new clean-energy economy.
|What is the fee based on?||The amount of carbon in the fuel|
|Where is the fee collected?||Upstream, at the well, mine head, or port of entry|
|How much is the fee in the first year?||$15 per ton|
|How much does the fee increase each year?||$10 per ton|
|Why is this plan revenue neutral?||The government doesn’t keep any of the fee revenue|
|What does CCL’s plan do with the fee revenue?||Returns 100% to households|
|What percent of households will break even or come out ahead with our plan?||66%|
|What will this predictably rising price cause?||Unleash entrepreneurs and investors in the new clean-energy economy|
|When will the yearly tax increases end?||When US emissions reach 10% of 1990 levels|
For more information about CCL in general, go here: citizensclimatelobby.org