1. Faith Principles and Carbon Pricing
Rebecca Eastwood, Columban Center for Advocacy and Outreach

2. How do we faithfully evaluate?
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?

3. 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

4. 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

5. 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?

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

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

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

9. 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 CO2 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.

10. 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 CO2 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.

11. 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 CO2 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 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.

12. 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 CO2, 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.

13. 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 CO2 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.

15. 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 116th 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.