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HomeMy WebLinkAboutStudy Session Agenda Packet 07-19-21STUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO July 19, 2021 6:30 p.m. This meeting will be conducted as a virtual meeting and in person at 7500 West 29th Avenue, Municipal Building, if allowed to meet on that date per COVID-19 restrictions. Some members of City Council or City staff will be physically present at the Municipal building for this meeting. The public may participate in these ways: 1.Provide comment in advance at www.wheatridgespeaks.org (comment by noon onJuly 19, 2021) 2.Virtually attend and participate in the meeting through a device or phone: •Click here to join and provide public comment •Or call +1-669-900-6833 with Access Code: 865 8470 7866Passcode: 948356 3.View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTubeLive at https://www.ci.wheatridge.co.us/view Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Those requiring assistance, ASL or translation service for languages other than English are asked to contact the Public Information Officer at 303- 235-2877 or wrpio@ci.wheatridge.co.us with as much notice as possible. Public Comment on Agenda Items 1.Outside Agency Committee recommendations 2.Colorado Communities for Climate Action membership 3. H.R.763 – Energy Innovation and Carbon Dividend Act of 2019 4.Staff Report(s) 5.Elected Officials’ Report(s) ADJOURNMENT Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager FROM: Marianne Schilling, Assistant to the City Manager DATE: July 19, 2021 SUBJECT: Outside Agency Program Review Committee Recommendations ISSUE: City Council created the Outside Agency Program Review Committee in June 2016 to review outside agency applications and present recommendations to City Council on the funding amounts each organization should receive. The purpose of creating this committee was to provide an additional opportunity for residents to participate in the budget process, and to give the committee members the opportunity to weigh community needs against available resources and provide recommendations to City Council. BACKGROUND: The total amount of funds distributed in early 2021 was $133,800. In May 2021, five new Wheat Ridge residents were appointed by City Council to serve on the committee for a two-year term to expire in July 2022. Moving forward each year, new members will join for a two-year term so that the committee will be comprised of both experienced and new members each year. District I: Jerry DiTullio District I: Vacant (Drop Out) District II: Cathy Milkey District II: Lisa Rucker District III: Sheila Red District III: Laura McGarry District IV: Genevieve Wooden District IV: Carol Mathews RECOMMENDATIONS: The committee reviewed applications and listened to presentations from 25 different community organizations, totaling $157,150 in requests. This is an overall reduction in funding requests of $13,850 compared to last year. The total number of applicants is the same as last year; however, three new applications were received for the 2022 Outside Agency Program and three agencies from last year did not apply for funding. The three new applicants are Robbie’s Hope Foundation, Wheat Ridge Kiwanis and Friends of Stevens. The review committee is recommending granting $133,800 to outside agencies in the 2021 budget. This is the same amount recommended as last year. Item No. 1 Outside Agency Program Review Committee Recommendations July 19, 2021 Page 2 Several members of the committee will be present at the July 19, 2021 Study Session. Jerry DiTullio (District I) and Lisa Rucker (District II) will present the committee’s recommendations and answer any questions from Council. Attachment(s): 1. Summary of each Outside Agency requesting funding Outside Agency Organization 2021 Requests 2021 City Council Awards 2022 Requests 2022 Committee Recommendation Active Transportation Advisory Team 1,000$ $ 1,000 $ 1,000 1,000$ Applewood Community Foundation 3,300$ $ 500 $ 3,000 500$ CASA of Jefferson & Gilpin Counties 5,000$ $ 5,000 $ 5,000 6,200$ Community Table 15,000$ $ 13,200 $ 15,000 13,000$ Family Tree 10,000$ $ 9,000 $ 10,000 10,000$ Feed the Future 8,000$ $ 8,000 $ 6,000 5,400$ Friends of Paha 2,900$ $ 1,600 $ 1,900 1,900$ Institute for Environmental Solutions 5,000$ $ 2,600 $ 5,000 3,100$ Jefferson Center for Mental Health 5,000$ $ 5,000 $ 9,500 10,600$ Jefferson County Library Foundation 1,200$ $ 1,200 $ 1,750 1,400$ Jewish Family Services 6,000$ $ 3,400 $ 6,000 3,700$ Outdoor Lab Foundation 20,000$ $ 14,400 $ 20,000 13,800$ Regional Air Quality Council 3,700$ $ 1,000 $ 4,000 3,400$ Robbie's Hope Foundation -$ $ - $ 3,000 2,000$ Seniors' Resource Center 15,000$ $ 13,000 $ 20,000 18,500$ Sunshine Home Share 3,500$ $ 2,700 $ 3,000 2,200$ The Action Center 5,000$ $ 5,000 $ 7,500 6,000$ Wheat Ridge Community Foundation 9,800$ $ 5,800 $ 7,500 6,200$ Wheat Ridge Grange 5,000$ $ 4,000 $ 4,000 2,900$ Wheat Ridge Kiwanis -$ $ - $ 2,000 1,300$ Wheat Ridge High School STEM program 15,000$ $ 15,000 $ 10,000 10,000$ Wheat Ridge Optimist Club 1,500$ $ 1,500 $ 2,000 1,500$ Events Lutheran Medical Center Foundation 5,000$ $ 2,800 $ 5,000 3,200$ Farmers 5000 4,000$ $ 3,600 $ 5,000 5,000$ Friends of Stevens (FOS)-$ $ - $ 1,000 1,000$ Total 171,000*133,800*157,150$ 133,800$ red = new applicant for 2022 * = total number includes previous award recipients that did not apply this year 2022 Outside Agency Review Committee Recommendations Outside Agency Program Applicant Description of Program Description of Request Active Transportation Advisory Team The Wheat Ridge Active Transportation Advisory Team serves and engages the community by connecting people of all ages, resources and abilities with positive opportunities to safely navigate the city without a car. Request includes funding to: • Continue current initiatives, focusing on increasing safety through education, outreach and enforcement. • Support and provide input on the Bicycle and Pedestrian Master Plan and the NRS. • Focus on sidewalk and bike lane policy discussions. • Improve outreach encouragement with vulnerable populations including seniors, kids and low income residents. • Purchase low-cost replacement parts to refurbish bikes for community members in need. Applewood Community Foundation The mission of Applewood Community Foundation is to support business and community development in the greater Applewood area. It endeavors to foster community pride, local leadership, and neighborhood improvement in all aspects of our charitable activities. Request includes funding for: Creation of grant opportunities for community activities, schools, non-profits and small businesses in Applewood. CASA of Jefferson & Gilpin Counties CASA of Jeffco/Gilpin's mission is to recruit, train and manage volunteers who serve as independent lay advocates for children who are victims of neglect and physical and/or sexual abuse. Request includes funding for: CASA Jeffco/Gilpin to recruit, train and manage additional CASA volunteers, who in turn would advocate for child citizens of Wheat Ridge who have been abused or neglected. Community Table Community Table strives to improve the quality of life for neighbors in need by providing the food and resources people need to lift themselves from poverty. Request includes funding for: • Hunger Relief - A portion of funding will be used for emergency food assistance—Client Choice Pantry and Feeding the Future • Self-Sufficiency. The remaining funds will be used to support the emergency financial needs of struggling families and continued efforts to help them become self-reliant. Family Tree Family Tree's mission is to help Wheat Ridge children and families overcome child abuse, domestic violence and homelessness. Funding request would help to support direct services to Wheat Ridge residents and foster positive, transformational impact in their lives and the community Feed the Future (WR)The program provides food to eligible elementary aged children throughout the school year. The program helps ensure that children have a healthy and reliable source of food over the weekend enabling them to come to school better prepared to learn. All the money raised by the Wheat Ridge Backpack program is used to pay Community Table for the food provided the three-area Wheat Ridge Schools. Friends of Paha Friends of Paha is a non-profit organization comprised solely of volunteers with the goal of raising funds to help financially support Camp Paha, the City of Lakewood's summer day programs for youth and young adults with disabilities. Friends of Paha is requesting funding to provide direct program support to provide camperships to youth and young adults to participate in Camp Paha in 2022. 2022 Funding Request Summaries ATTACHMENT 1 Institute for Environmental Solutions (IES) IES tackles problems such as climate change, community health, ozone air pollution, and contaminants from pharmaceuticals and personal care products in waterways. IES designs and implements scientifically proven strategies to solve Colorado’s most pressing environmental problems. Funds would be used to plan and implement the Creekside Restoration Project along the Wheat Ridge Greebeld. IES will collaborate with Wheat Ridge Parks and Recreation District and Kullerstrand Elementary School to complete the project. Support from the Wheat Ridge Outside Agency Fund will pay for the educational personnel and supplies to develop and implement two workshops, two planting days, and the summer maintenance program. Jefferson Center for Mental Health Jefferson Center provides a variety of outpatient programming for both groups and individuals; has established a presence in primary care offices across the area to offer integrate primary/behavioral healthcare; offers essential case management and public resource navigation services; and delivers effective substance use and withdrawal management services to the area. Requested funding would be used specifically to support the 0.5 counseling position at Kullerstrand Elementary. Approximately 200 students enrolled at Kullerstrand Elementary School will have continued access to mental health services, something that has emerged as especially critical due to the psychological toll of the COVID-19 pandemic on individuals nationwide, including youth. (Everitt and Stevens are bigger schools with higher enrollment and more funding available to support counseling services). Jefferson County Library Foundation Jefferson County Library Foundation (JCLF) provides critical support to Jefferson County Public Library (JCPL), expanding free programs and services to all Jefferson County residents. Through public outreach, advocacy and fundraising JCLF strengthens JCPL and promotes greater awareness of its valuable resources and services, helping JCPL ensure free and equal access to information and great literature to all Jeffco residents. Requested funds would be used to benefit elderly and/or homebound adults through a photography project. The library will distribute disposable cameras to seniors at the library, through connections at the Senior Resource Center, and to senior homes in the city of Wheat Ridge. The library will use its own resources to host a photography lecture at the Wheat Ridge Library to drum up interest and to give photography pointers. Seniors will be encouraged to fill up the disposable camera roll with photos of their choice, whatever resonates with them through the viewfinder. Jewish Family Services JFS helps seniors maintain a high quality of life, provides quality mental health counseling to children and adults, offers training and job placement to people with significant barriers to employment, and provides food and financial aid to individuals and families in crisis. Requested funding would be used to support the vital services that ensure the health, safety, and welfare of older adult residents of Wheat Ridge. ACC care managers offer information about, referrals to, and assistance connecting with community resources designed to help older adult residents in Wheat Ridge maintain their independence and quality of life. Outdoor Lab Foundation The OLS aims to develop stewardship of self, community and environment. It builds social cohesion among Wheat Ridge students by teaching and focusing on I CARE core values—Integrity, Commitment, Awareness, Respect, Empathy. OLS also improves students’ physical health, health literacy and emotional well-being through physical activity, self-care and healthy eating, and offers a 24-hour clinic led by a registered nurse. Finally, through its programs, the OLS is increasing students’ passion and knowledge of STEM through daily activities in the natural environment. The requested funding would support OLF in ensuring that all students have the opportunity to participate in programming, regardless of their ability to pay. Funding will be used to offset program costs for Everitt Middle School students qualifying for free and reduced-priced lunch (67%). Regional Air Quality Council The RAQC’s program help ensure that residents can enjoy the beautiful outdoors of Colorado by maintaining federal health standards for pollutants. The RAQC uses the funding from its local government partners to implement air quality programs and to match federal grants that provide programs which allows the RAQC to provide services to Wheat Ridge and the nine- county Denver metro/North Front Range area including: Ozone State Implementation Plan work (compliance with federal air quality standards), Fuels and Motor Vehicle Work, Charge Ahead Colorado, Governor’s ALT Fuels Program, Clean Air Fleets Program, Outreach and Public Education, Simple Steps. Better Air, Public alerts regarding high ozone days to citizens, Mow Down Pollution Residential Lawn Mower Exchange Program, Mow Down Pollution Commercial Program, Voluntary Optical Gas Imaging Camera Loan Program, Transportation/Air Quality Planning and Coordination work, Local Government Assistance. Robbie's Hope Foundation This nonprofit organization gives teens an outlet and a platform to voice their opinions on their own mental health and giving adults a way to support their children. Robbie's Hope is looking for funding to offset the printing costs of the free mental health resource, the Adult Handbook. This handbook is a guide of the two-way conversation of mental health between a teen and their trusted adult to drive a much-needed exchange. Seniors' Resource Center The Seniors' Resource Center is dedicated to enhancing the independence, dignity and quality of life for seniors in the Metro Denver Area and surrounding communities. Services include transportation, in home care and adult daytime programs which provide life enriching activities and support both older adults and their caregivers. The funding request would be used to support its Community and In-home Care Services, and Adult Day and Respite Services. Requested funds are needed to pay essential program and operating expenses, and other overhead expenses that allow SRC to provide direct services for older adults. Sunshine Home Share Sunshine promotes aging in place through a safe, care-managed, home-sharing model that generates income and assistance for seniors while accessing untapped affordable housing for home seekers. The requested funding would support a portion of the cost of the Executive Director/Program Manager positions for one year. These roles provide organizational development and client services. The Action Center The Action Center's mission is to provide an immediate response to basic human needs and promote pathways to self-sufficiency through a variety of client services. With the assistance of a dedicated staff and volunteer case management team, participant’s needs are addressed and met. The requested funding would go toward the operational costs of running the: • Food Rescue/Grocery - The grocery is designed with a Client Choice model where our neighbors can select a five-day food supply up to nine times per year, choosing from a variety of nutritious foods including fruits, vegetables, grains, meats and other proteins, and dairy items, along with dried and canned goods. • School Supply Distribution programs - Involves the distribution of grade-appropriate backpacks of supplies to as many students as possible. Wheat Ridge Community Foundation By enabling community organizations to accept charitable and tax-free donations, the Wheat Ridge Community Foundation directly supports the efforts of the participating organizations in their missions to improve the health, safety, welfare and quality of life for Wheat Ridge residents. The funding requested would support: • Professional Accounting • Client Fund Manager • WRCF Endowment Matching Donation Wheat Ridge Grange The Wheat Ridge Grange is a safe place in the heart of Wheat Ridge to gather and come together as a community. The funding requested would support: • Support community programming • Building updates and repairs Wheat Ridge High School STEM program The STEM program educates students in Wheat Ridge and provides learning opportunities in the areas of design, manufacturing, assembly, multi- media, professional presentation practices, working in group situations and working with the community and City to allow for large hands-on open-ended projects. The funding requested would support: • Mini Battle Bot testing arena for student safety as they enter the National Robotics League Competition • Beginning students Rover Projects (2) • 3D printing material for two 3D printers Wheat Ridge Kiwanis The Wheat Kiwanis Club's mission is to encourage positive change in the world one child and one community at a time. Members are committted to helping the youth in our community, while enjoying the lasting friendships that come from sharing a common goal. Funding would be used toward: • Starting a Builders Club • Providing a monthly breakfast for Everitt Middle School students and their parents, • Rebuilding the Key Club at Wheat Ridge High School • Continuing the sponsorship of the local Cub Scout Pack. Wheat Ridge Optimist Club The Wheat Ridge Optimist Club focuses on providing services to Wheat Ridge youth, primarily through involvement with Wheat Ridge schools. Their motto is: “By Providing Hope and Positive Vision, Optimists Bring Out the Best in Youth, Ourselves and Our Community”. This funding will be used 100% for the Christmas program. The requested funding would support the Christmas Program. The Optimist Club provides gift certificates for clothing and food along with toys to Wheat Ridge families in need as chosen by Wheat Ridge school administrators. EVENTS Lutheran Med Center Foundation - Heroes of Hope The Heroes of Hope race is Lutheran Medical Center Foundation's annual event to support Cancer Centers of Colorado at Lutheran. These funds help to provide patient navigation, survivor and nurse education, patient care for those facing a cancer diagnosis, advanced medical equipment and treatment options, and much more for our community members and families who are going through cancer treatment. Requested funding would go toward the cost of the annual Heroes of Hope race. This race raises funds for Lutheran's cancer services program, including the Wellness that Works and Bridge to Wellness program for cancer patients. Farmers 5000 Farmers 5000 is an annual fundraising event for Wheat Ridge High School. Requsted funding would go toward the cost of the annual Farmers 5000 race. The funds raised are used to support WRHS students, enhance learning experiences, provide necessary school and personal items for the most needy, and update equipment for a variety of departments, from Science to Music. Friends of Stevens Friends of Stevens is the parent/teacher/student/family/community non- profit Parent/Teacher Organization (PTO) for Stevens Elementary, and FOS funds are managed through the Wheat Ridge Community Foundation Funds would suppor the Community Celebration Event. The money would be used to purchase food and related supplies for attendees (e.g., burgers, hot dogs, buns, condiments, beverages, ice, cups, plates, utensils, etc.) and support activities for attendees (e.g., the purchase of sidewalk chalk, rental fees for an inflatable jumping castle - the largest ticket-item for the event, etc.). Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager Marianne Schilling, Assistant to the City Manager FROM: Kayla Betzold, Sustainability Coordinator DATE: July 19, 2021 SUBJECT: Colorado Communities for Climate Action ISSUE: Colorado Communities for Climate Action (CC4CA) is a coalition of counties and municipalities advocating for strong state and federal climate policy. Jacob Smith, CC4CA executive director, will be presenting the membership benefits and current policy priorities to City Council. There are 38 local government members in the coalition including Edgewater, Golden and Westminster. PRIOR ACTION: During the February 1, 2021 City Council meeting staff provided proposed strategies from Sustainable Wheat Ridge to City Council. Proposed strategy 4 was “Support environmental sustainability policy on a regional, state and federal level”. CC4CA was outlined as a policy advocacy group that could facilitate the adoption of the proposed strategy. Jacob Smith presented to the Sustainable Wheat Ridge resident advisory committee on March 18, 2021 regarding Wheat Ridge joining the CC4CA coalition. The committee discussed the proposal and voted to recommend that City Council pass a resolution in support of joining the coalition in 2022. FINANCIAL IMPACT: $5,000 annual dues, determined by Wheat Ridge population size. BACKGROUND: CC4CA focuses on legislative, regulatory, and administrative action on a state and federal level through the support of their coalition of Colorado municipalities. The benefits of the coalition include collaboration, cost-effectiveness, and local support. Through CC4CA, local governments can influence state and federal actions more than individual municipalities can alone. CC4CA provides the framework for strong collaboration between state and local governments, which results in maximum return on local efforts. Through the coalition, members can pool resources to secure professional representation to ensure impactful presence at the state and federal level. The coalition also offers networking opportunities for members and produces analyses and materials in support of coalition and member priorities and actions. Item No. 2 Organization Structure CC4CA is guided by a Board of Directors comprised of representatives from member jurisdictions, as well as an executive director and other committees of member representatives making decisions on specific topics. Each CC4CA member is asked to designate a representative to serve on the Board of Directors and these representatives are typically elected officials or staff. The main criterion for member representation is the ability to speak on behalf of the member municipality in CC4CA board discussions and decisions. The Board of Directors meet bi-monthly and the Board holds an annual retreat in June. Policy Priorities Coalition members annually update a Policy Statement that guides the coalition’s advocacy efforts. CC4CA’s policy positions reflect unanimous agreement among the coalition members on steps that should be taken at the state and federal level, often in partnership with local governments, to enable Colorado and its communities to lead in protecting the climate. The Policy Statement includes: • Actively supporting pro-climate action legislation and opposing bills that undercut state or local climate authority. • Advocating for state policies and actions that put Colorado on the path to significant greenhouse gas emissions reductions and empower local governments to take effective action in their own communities. • Representing local interests in state agency proceedings on climate protection, energy efficiency, and clean energy, and advocating for continued and strengthened federal climate actions and against efforts to roll back federal policies and programs. The following general principles guide the specific policies that CC4CA supports: • Collaboration between state and federal government agencies and Colorado’s local governments to advance local climate protection and resilience. • State and federal programs to reduce carbon pollution, including adequate and ongoing funding of those programs. • Analyses, financial incentives, infrastructure, and enabling policies for the development and deployment of clean energy technologies. • Locally driven and designed programs to support communities impacted by the clean energy transformation. • Prioritizing policies that put people at the center of decision-making, minimizing disparities in growing the clean economy, especially for historically marginalized communities, and enhancing equitable outcomes for all. Budget and Annual Dues CC4CA coalition members pay annual dues to provide the resources needed for effective coalition operations, including representation by professional advocacy consultants in the General Assembly and before state agencies. Dues are based on population size. Wheat Ridge falls into the 5,000 – 49,999 population category, with the base membership due of $5,000. If the resolution passes, joining CC4CA would address Sustainability Action Plan renewable energy goals 1-A: “Represent City renewable energy goals to relevant hearings of the Colorado Public Utility Commission”, 1-B: “Endorse and propose county, state, and federal policy that support City goals for renewable energy”, and 2-D: “Partner with neighboring cities and Jefferson County in developing renewable energy programs and services for economies of scale and services that the City alone does not have the resources to offer”. RECOMMENDATION: Staff recommends moving forward with a resolution in support of Colorado Communities for Climate Action. ATTACHMENTS: 1. CC4CA 2021-2022 Membership Overview 2. CC4CA 2020-2021 Policy Statement Colorado Communities for Climate Action February 2021 Colorado Communities for Climate Action is a coalition of counties and municipalities advocating for strong state and federal climate policy. Climate change is a defining challenge of this century. As local governments and local elected officials, we have a unique perspective on the threats and challenges that climate change poses, a perspective that is often overlooked in the policy debates. alition Members Current Policy Priorities Colorado Communities for Climate Action works to shape state and federal climate policy. Coalition members annually update a Policy Statement that guides the coalition’s advocacy efforts. The Policy Statement includes: • Actively supporting pro-climate action legislation and opposing bills that undercut state or local climate authority. • Advocating for state policies and actions that put Colorado on the path to significant greenhouse gas emissions reductions and empower local governments to take effective action in their own communities. • Representing local interests in state agency proceedings on climate protection, energy efficiency, and clean energy, and advocating for continued and strengthened federal climate actions and against efforts to roll back federal policies and programs. Benefits of the Coalition Collaboration Working together through Colorado Communities for Climate Action, local governments can influence state and federal actions more than individual jurisdictions can alone. CC4CA works for strong collaboration between state and local governments, maximizing the return on local efforts. Cost-Effectiveness Pooling resources to secure professional representation is the most cost-effective way for local governments to sustain a focused and impactful presence at the state and federal levels. Local Support The coalition also offers networking opportunities to members and produces analyses and materials in support of coalition and member priorities and actions. ATTACHMENT 1 The coalition’s 36 local government members include: • Adams County • Aspen • Avon • Basalt • Boulder • Boulder County • Breckenridge • Broomfield • Carbondale • Clear Creek County • Crested Butte • Dillon • Eagle County • Edgewater • Erie • Fort Collins • Frisco • Gilpin County • Glenwood Springs • Golden • Lafayette • Longmont • Louisville • Lyons • Mountain Village • Nederland • Northglenn • Pitkin County • Ridgway • Salida • San Miguel County • Snowmass Village • Summit County • Telluride • Vail • Westminster Budget and Annual Dues CC4CA members pay annual dues to provide the resources for effective coalition operations, including representation by professional advocacy consultants in the General Assembly and before state agencies. Dues are based on population size. Within each population category, local governments have a choice of dues amounts (Base, Base Plus, etc.). Every member of the coalition has the same voice and vote regardless of the dues level they select. Coalition Management The coalition is guided by a board comprised of representatives from member jurisdictions, as well as an executive director and other committees of member representatives making decisions on particular subjects. A unanimous vote of all members is required to amend CC4CA’s Policy Statement. Elisabeth Rosen of Political Advocacy, Inc. and Eliza Schultz of Schultz Public Affairs represent the coalition at the state capitol. For more information: Jacob Smith, Executive Director jsmith@cc4ca.org • (303) 810-6017 • CC4CA.org Aspen · Avon · Basalt · Boulder · Boulder County · Breckenridge · Broomfield · Carbondale Clear Creek County · Crested Butte · Dillon · Eagle County · Erie · Fort Collins · Fraser · Frisco · Gilpin County Glenwood Springs · Golden · Lafayette · Longmont · Louisville · Lyons · Mountain Village · Nederland · Northglenn Pitkin County · Ridgway · Salida · San Miguel County · Summit County · Telluride · Vail · Westminster CC4CA 2020-2021 Policy Statement Adopted June 19, 2020 Colorado Communities for Climate Action is a coalition of local governments advocating for stronger state and federal climate policy. CC4CA’s policy positions for 2020-2021 reflect unanimous agreement among the coalition members on steps that should be taken at the state and federal level, often in partnership with local governments, to enable Colorado and its communities to lead in protecting the climate. CC4CA generally focuses on legislative, regulatory, and administrative action, supporting efforts that advance the general policy principles and the detailed policy positions described below, and opposing efforts that would weaken or undermine these principles and positions. General Policy Principles The following general principles guide the specific policies that Colorado Communities for Climate Action supports: Collaboration between state and federal government agencies and Colorado’s local governments to advance local climate protection and resilience. State and federal programs to reduce carbon pollution, including adequate and ongoing funding of those programs. Analyses, financial incentives, infrastructure, and enabling policies for the development and deployment of clean energy technologies. Locally driven and designed programs to support communities impacted by the clean energy transformation. Prioritizing policies that put people at the center of decision-making, minimizing disparities in growing the clean economy, especially for historically marginalized communities, and enhancing equitable outcomes for all. ATTACHMENT 2 2 Policy Positions Colorado Communities for Climate Action supports the following policy positions: Statewide Climate Strategies 1. Reduce statewide carbon emissions consistent with or greater than the State of Colorado’s 2019 codified goals. 2. Secure accurate, frequent state greenhouse gas inventories and forecasts for Colorado which are made accessible to local governments and designed to be useful for stakeholders. 3. Adopt a comprehensive market-based approach to reduce Colorado’s greenhouse gas emissions that ensures the benefits accrue justly and equitably to impacted communities. 4. Expand consideration of the environmental and health costs associated with the use of fossil fuels in making and implementing climate-related policy. Local Climate Strategies 5. Remove barriers and promote opportunities that allow counties and municipalities to maximize the deployment of local clean energy and climate-related strategies, including resilience-oriented strategies, while promoting affordable, accessible, and equitable delivery of reliable clean energy. 6. Enable local governments to obtain the energy use and other data from utilities and state agencies that they need to effectively administer climate and clean energy programs. 7. Support a comprehensive public process for evaluating retail and wholesale energy choice options for communities, informed by a broad variety of stakeholders. 8. Support policies that promote the efficient use of energy in buildings. 9. Provide for cost-effective and equitable policies, strategies, and practices that enable and accelerate beneficial electrification, reduce GHG emissions, improve quality of life, and make the electric grid more robust and resilient. Energy Generation 10. Accelerate retirement of existing fossil fuel generation facilities and their replacement with cost-effective and reliable clean energy supplies, through means that protect both utilities and consumers. 3 11. Expand the ability of electric cooperatives to independently purchase local renewable electricity and take other steps to reduce carbon pollution. 12. Modernize energy infrastructure to enhance community-based resilience and integrate distributed energy resources. Energy Efficiency 13. Expand demand side savings from efficiency and conservation for all energy types. 14. Support ongoing and sustainable funding for weatherization and renewable energy assistance to low-income households, including those from coal-dominated economies, so that all Coloradans have access to comfortable and affordable homes. 15. Support ongoing and sustainable funding for programs that assist communities in transition from coal-dominated economies. 16. Provide counties and statutory cities and towns with the same authority held by home rule cities to implement local energy conservation policies and programs. Transportation 17. Ensure effective implementation of Colorado’s vehicle emissions standards and other regulatory and programmatic activities designed to reduce carbon emissions from vehicles. 18. Implement the 2020 Colorado Electric Vehicle Plan and other efforts to increase electrification of all motor vehicles. 19. Increase funding and policy incentives for multimodal transportation and multimodal-friendly development statewide. 20. Incentivize and select mobility alternatives, including movement of both people and goods, based on energy efficiency and environmental costs and benefits. Fossil Fuel Extraction Activities 21. Expand monitoring and reduction of the full life cycle emissions from fossil fuel extractive industry activities. Solid Waste Reduction 22. Grant CDPHE the authority to implement a plan for meeting Colorado’s statewide and regional solid waste diversion goals. 4 23. Reduce the use of disposable/single-use products and promote the reuse of materials, including construction and demolition waste. 24. Foster infrastructure, policies, incentives, and programs for reuse, recycling, and composting. General 25. Encourage the adoption of climate-positive innovations like telecommuting, drawing from the lessons learned during the coronavirus pandemic, to substantially reduce air and carbon pollution. 26. Promote proactive programs and efforts that improve the resilience and adaptability of Colorado communities in the face of natural disasters and other major challenges associated with climate change, including ensuring that disaster stabilization and recovery efforts result in reduced carbon pollution and improved resilience to future disasters. 27. Optimize the potential for carbon sequestration through regenerative agriculture, improved soil health, and forest management. 28. Incorporate equity, accessibility, and just transition considerations into climate policies and actions. 29. Encourage investments that achieve climate-positive solutions, including policies that encourage entities investing public dollars to consider partial or full divestment as part of their investment strategies. 30. Maintain protections and authorities currently provided under environmental laws like the National Environmental Policy Act, the Clean Air Act, and the Clean Water Act. Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager Marianne Schilling, Assistant to the City Manager FROM: Kayla Betzold, Sustainability Coordinator DATE: July 19, 2021 SUBJECT: H.R. 2307 - Energy Innovation and Carbon Dividend Act of 2021 ISSUE: H.R. 2307, the Energy Innovation and Carbon Dividend Act of 2021, is a bill intended to encourage market-driven innovation of clean energy technologies through a carbon fee on producers and importers. The bill would also distribute the net proceeds to eligible U.S. residents on a per-capita basis as a monthly carbon dividend, resulting in a revenue neutral system and is projected to create 2.1 million new jobs. PRIOR ACTION: During the August 10, 2020 City Council meeting a group of five Wheat Ridge residents, led by a Sustainable Wheat Ridge committee member, spoke at public comment regarding H.R. 2307 (then H.R. 763) and asked City Council to consider passing a resolution in support of the bill. City Council provided direction for staff to return to a future study session with a draft resolution. In order to present the most recent version of the bill, it was determined that staff would return to City Council with a draft resolution after the bill was reintroduced into the new congress in 2021. FINANCIAL IMPACT: N/A BACKGROUND: The Energy Innovation and Carbon Dividend Act was originally introduced to the United States House of Representatives in 2018 by Representative Ted Deutch (D-FL) with bipartisan support from four co-sponsors. The bill died in the House of Representatives when the 115th congress ended on January 3, 2019. The bill was reintroduced to the 116th congress in the House of Representatives as H.R. 763 on January 24, 2019 and referred to the Committee on Ways and Means, the Committee on Energy and Commerce and the Committee on Foreign Affairs. The bill was then referred to the Subcommittee on Energy. The 117th congress began in January 2021 and the bill was reintroduced on April 1, 2021 by Rep. Ted Deutch (D-FL-22) with 28 co-sponsors. It was then referred to the Committee on Ways and Means, the Committee on Energy and Commerce and the Committee on Foreign Affairs. Item No. 3 H.R. 2307 is a bill that imposes a fee on the producers and importers of fossil fuels with the rate beginning at $15 per metric ton of CO2 equivalent emissions of fossil fuels and escalating by $10 per metric ton each year. Because the cost to oil and gas companies for fossil fuel extraction and production increases, the cost of fossil fuels increases for the consumer in commodities like gasoline and electricity. According to a report by The Center on Global Energy Policy at Columbia University, national average gasoline prices are estimated to increase by 12 cents after two years of adoption and 90 cents after 12 years of adoption. The primary goal of this bill is to encourage market-driven innovation of clean energy technologies through a carbon fee on producers and importers, reducing carbon emissions by up to 45% by 2030, with a net zero target by 2050. To compensate for the increased price of fossil fuels and fossil fuel intensive products, the fees are deposited into a Carbon Dividend Trust Fund and used for monthly dividend payments to U.S. citizens or lawful residents, resulting in a revenue neutral system. It is estimated that the dividend payment initially would be approximately $20 per month per adult and $10 per month for up to two eligible children per household, although the additional revenue from the annual fee increase is projected to increase monthly dividend payments to $130 per adult and $65 per child over a 20 year period. The bill is also projected to create 2.1 million new jobs. If passed, the bill would amend the Internal Revenue Code of 1986 and make adjustments to the Clean Air Act. Currently, H.R. 2307 has 71 cosponsors in the House of Representatives from 27 states, including three Colorado Representatives: Rep. Ed Perlmutter (D-CO-07), Rep. Joe Neguse (D-CO-02), and Rep. Jason Crow (D-CO-06). Twelve Colorado cities and counties have passed resolutions in support of a carbon fee and dividend including Aspen, Boulder County, Carbondale, Manitou Springs, Pitkin County, and jointly Ouray County, San Miguel County, Mountain Village, Norwood, Ouray, Ridgeway, and Telluride. Wheat Ridge will be the second after Manitou Springs to specifically endorse H.R. 2307 if the resolution passes. The resolution supports the Wheat Ridge Sustainability Action Plan Goal 1-Bi in the renewable energy topic area: “Endorse a market solution to carbon dioxide pollution with a federal tax on carbon production or a carbon fee/dividend”. Staff is seeking consensus from City Council to return with a resolution in support of H.R. 2307. RECOMMENDATION: Staff recommends moving forward with a resolution in support of H.R. 2307. ATTACHMENTS: 1. H.R. 2307 – Energy Innovation and Carbon Dividend Act of 2021 I 117TH CONGRESS 1ST SESSION H. R. 2307 To create a Carbon Dividend Trust Fund for the American people in order to encourage market-driven innovation of clean energy technologies and market efficiencies which will reduce harmful pollution and leave a healthier, more stable, and more prosperous Nation for future genera- tions. IN THE HOUSE OF REPRESENTATIVES APRIL 1, 2021 Mr. DEUTCH (for himself, Mr. MALINOWSKI, Ms. ESHOO, Ms. SCHAKOWSKY, Mr. CRIST, Mr. KILMER, Mr. PETERS, Ms. CHU, Mr. CONNOLLY, Ms. CRAIG, Mr. MORELLE, Mr. CARBAJAL, Mr. RASKIN, Mr. SIRES, Mr. SHERMAN, Mr. CROW, Mr. CORREA, Ms. SCANLON, Mr. JOHNSON of Georgia, Ms. PINGREE, Mr. MOULTON, Ms. ROYBAL-ALLARD, Mr. GARAMENDI, Mr. EVANS, Mr. PHILLIPS, Ms. MENG, Mr. CA´RDENAS, Ms. LEE of California, and Mr. CARTWRIGHT) introduced the following bill; which was referred to the Committee on Ways and Means, and in addi- tion to the Committees on Energy and Commerce, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To create a Carbon Dividend Trust Fund for the American people in order to encourage market-driven innovation of clean energy technologies and market efficiencies which will reduce harmful pollution and leave a healthier, more stable, and more prosperous Nation for future gen- erations. VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 2 •HR 2307 IH Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Energy Innovation and 4 Carbon Dividend Act of 2021’’. 5 SEC. 2. FINDINGS. 6 The Congress finds that— 7 (1) efficient markets strengthen our economy 8 and benefit our Nation by encouraging competition, 9 innovation, and technological progress; 10 (2) efficient markets should reflect all costs of 11 goods to ensure that they advance America’s pros-12 perity and national interests; 13 (3) emissions of carbon pollution and other 14 harmful pollutants into our Nation’s air impose sub-15 stantial costs on all Americans and on future gen-16 erations; and 17 (4) creation of a Carbon Dividend Trust Fund, 18 to be distributed to the American people, will make 19 markets more efficient, create jobs, and stimulate 20 competition, innovation, and technological progress 21 that benefit all Americans and future generations. 22 SEC. 3. CARBON DIVIDENDS AND CARBON FEE. 23 The Internal Revenue Code of 1986 is amended by 24 adding at the end the following new subtitle: 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 3 •HR 2307 IH ‘‘Subtitle L—CARBON DIVIDENDS 1 AND CARBON FEE 2 ‘‘CHAPTER 101. CARBON FEES. ‘‘CHAPTER 102. CARBON BORDER FEE ADJUSTMENT. ‘‘CHAPTER 101—CARBON FEES 3 ‘‘Sec. 9901. Definitions. ‘‘Sec. 9902. Carbon fee. ‘‘Sec. 9903. Emissions reduction schedule. ‘‘Sec. 9904. Decommissioning of carbon fee. ‘‘Sec. 9905. Carbon Capture and Sequestration. ‘‘Sec. 9906. Administrative authority. ‘‘SEC. 9901. DEFINITIONS. 4 ‘‘For purposes of this subtitle: 5 ‘‘(a) ADMINISTRATOR.—The term ‘Administrator’ 6 means the Administrator of the Environmental Protection 7 Agency. 8 ‘‘(b) CARBON DIOXIDE EQUIVALENT OR CO2-e.—The 9 term ‘carbon dioxide equivalent’ or ‘CO2-e’ means the 10 number of metric tons of carbon dioxide emissions with 11 the same global warming potential as one metric ton of 12 another greenhouse gas. 13 ‘‘(c) CARBON-INTENSIVE PRODUCT.—The term ‘car-14 bon-intensive product’ means, as identified by the Sec-15 retary by rule— 16 ‘‘(1) for purposes of this chapter— 17 ‘‘(A) any manufactured or agricultural 18 product which the Secretary in consultation 19 with the Administrator determines is emissions- 20 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 4 •HR 2307 IH intensive and trade-exposed, except that no cov-1 ered fuel is a carbon-intensive product, and 2 ‘‘(B) until such time that the Secretary 3 promulgates rules identifying carbon-intensive 4 products, the following shall be considered car-5 bon-intensive products: iron, steel, steel mill 6 products (including pipe and tube), aluminum, 7 cement, glass (including flat, container, and 8 specialty glass and fiberglass), pulp, paper, 9 chemicals, or industrial ceramics, and 10 ‘‘(2) for purposes of chapter 102, any economic 11 sector, or product from that sector, which the Sec-12 retary in consultation with the Administrator deter-13 mines is prone to carbon leakage because it is emis-14 sions-intensive and trade-exposed, along with other 15 pertinent criteria, except that no covered fuel is a 16 carbon-intensive product. 17 ‘‘(d) CARBON LEAKAGE.—The term ‘carbon leakage’ 18 means an increase of global greenhouse gas emissions 19 which are substantially due to the relocation of greenhouse 20 gas sources from the United States to jurisdictions which 21 lack comparable controls upon greenhouse gas emissions. 22 ‘‘(e) COST OF CARBON OR CARBON COSTS.—The 23 term ‘cost of carbon’ or ‘carbon costs’ means a national 24 or sub-national government policy which explicitly places 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 5 •HR 2307 IH a price on greenhouse gas pollution and shall be limited 1 to either a tax on greenhouse gases or a system of cap- 2 and-trade. The cost of carbon is expressed as the price 3 per metric ton of CO2-e. 4 ‘‘(f) COVERED ENTITY.—The term ‘covered entity’ 5 means— 6 ‘‘(1) in the case of crude oil— 7 ‘‘(A) a refinery operating in the United 8 States, and 9 ‘‘(B) any importer of any petroleum or pe-10 troleum product into the United States, 11 ‘‘(2) in the case of coal— 12 ‘‘(A) any coal mining operation in the 13 United States, and 14 ‘‘(B) any importer of coal into the United 15 States, 16 ‘‘(3) in the case of natural gas— 17 ‘‘(A) any entity entering pipeline quality 18 natural gas into the natural gas transmission 19 system, and 20 ‘‘(B) any importer of natural gas into the 21 United States, and 22 ‘‘(4) any entity or class of entities which, as de-23 termined by the Secretary, is transporting, selling, 24 or otherwise using a covered fuel in a manner which 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 6 •HR 2307 IH emits a greenhouse gas to the atmosphere and which 1 has not been covered by the carbon fee or the carbon 2 border fee adjustment. 3 ‘‘(g) COVERED FUEL.—The term ‘covered fuel’ 4 means crude oil, natural gas, coal, or any other product 5 derived from crude oil, natural gas, or coal which shall 6 be used so as to emit greenhouse gases to the atmosphere. 7 ‘‘(h) CRUDE OIL.—The term ‘crude oil’ means 8 unrefined petroleum. 9 ‘‘(i) EXPORT.—The term ‘export’ means to transport 10 a product from within the jurisdiction of the United States 11 to persons outside the United States. 12 ‘‘(j) FOSSIL FUEL.—The term ‘fossil fuel’ means 13 coal, coal products, petroleum, petroleum products, or nat-14 ural gas. 15 ‘‘(k) FULL FUEL CYCLE GREENHOUSE GAS EMIS-16 SIONS.—The term ‘full fuel cycle greenhouse gas emis-17 sions’ means the greenhouse gas content of a covered fuel 18 plus that covered fuel’s upstream greenhouse gas emis-19 sions. 20 ‘‘(l) GLOBAL WARMING POTENTIAL.—The term 21 ‘global warming potential’ means the ratio of the time- 22 integrated radiative forcing from the instantaneous release 23 of one kilogram of a trace substance relative to that of 24 one kilogram of carbon dioxide. 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 7 •HR 2307 IH ‘‘(m) GREENHOUSE GAS.—The term ‘greenhouse 1 gas’ means carbon dioxide (CO2), methane (CH4), nitrous 2 oxide (N2O), and other gases as defined by rule of the 3 Administrator. 4 ‘‘(n) GREENHOUSE GAS CONTENT.—The term 5 ‘greenhouse gas content’ means the amount of greenhouse 6 gases of a product or a fuel, expressed in metric tons of 7 CO2-e, which would be emitted to the atmosphere by the 8 use of a covered fuel and shall include, nonexclusively, 9 emissions of carbon dioxide (CO2), nitrous oxide (N2O), 10 methane (CH4), and other greenhouse gases as identified 11 by rule of the Administrator. 12 ‘‘(o) GREENHOUSE GAS EFFECT.—The term ‘green-13 house gas effect’ means the adverse effects of greenhouse 14 gases on health or welfare caused by the greenhouse gas’s 15 heat-trapping potential or its effect on ocean acidification. 16 ‘‘(p) IMPORT.—Irrespective of any other definition in 17 law or treaty, the term ‘import’ means to land on, bring 18 into, or introduce into any place subject to the jurisdiction 19 of the United States. 20 ‘‘(q) PETROLEUM.—The term ‘petroleum’ means oil 21 removed from the earth or the oil derived from tar sands 22 or shale. 23 ‘‘(r) PRODUCTION GREENHOUSE GAS EMISSIONS.— 24 The term ‘production greenhouse gas emissions’ means 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 8 •HR 2307 IH the quantity of greenhouse gases, expressed in metric tons 1 of CO2-e, emitted to the atmosphere resulting from, non-2 exclusively, the production, manufacture, assembly, trans-3 portation, or financing of a product. 4 ‘‘(s) UPSTREAM GREENHOUSE GAS EMISSIONS.— 5 The term ‘upstream greenhouse gas emissions’ means the 6 quantity of greenhouse gases, expressed in metric tons of 7 CO2-e, emitted to the atmosphere resulting from, non-8 exclusively, the extraction, processing, transportation, fi-9 nancing, or other preparation of a covered fuel for use. 10 ‘‘SEC. 9902. CARBON FEE. 11 ‘‘(a) CARBON FEE.—There is hereby imposed a car-12 bon fee on any covered entity’s emitting use, or sale or 13 transfer for an emitting use, of any covered fuel. 14 ‘‘(b) AMOUNT OF THE CARBON FEE.—The carbon 15 fee imposed by this section is an amount equal to— 16 ‘‘(1) the greenhouse gas content of the covered 17 fuel, multiplied by 18 ‘‘(2) the carbon fee rate. 19 ‘‘(c) CARBON FEE RATE.—For purposes of this sec-20 tion— 21 ‘‘(1) IN GENERAL.—The carbon fee rate, with 22 respect to any use, sale, or transfer during a cal-23 endar year, shall be— 24 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 9 •HR 2307 IH ‘‘(A) in the case of calendar year 2021, 1 $15 per metric ton of CO2-e, and 2 ‘‘(B) except as provided in paragraph (2), 3 in the case of any calendar year thereafter— 4 ‘‘(i) the carbon fee rate in effect 5 under this subsection for the preceding cal-6 endar year, plus 7 ‘‘(ii) $10. 8 ‘‘(2) EXCEPTIONS.— 9 ‘‘(A) INCREASED CARBON FEE RATE 10 AFTER MISSED ANNUAL EMISSIONS REDUCTION 11 TARGET.—In the case of any year immediately 12 following a year for which the Secretary deter-13 mines under section 9903(b) that the actual 14 emissions of greenhouse gases from covered 15 fuels exceeded the emissions reduction target 16 for the previous year, paragraph (1)(B)(ii) shall 17 be applied by substituting ‘$15’ for the dollar 18 amount otherwise in effect for the calendar year 19 under such paragraph. 20 ‘‘(B) CESSATION OF CARBON FEE RATE IN-21 CREASE AFTER CERTAIN EMISSION REDUCTIONS 22 ACHIEVED.—In the case of any year imme-23 diately following a year for which the Secretary 24 determines under 9903(b) that actual emissions 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 10 •HR 2307 IH of greenhouse gases from covered fuels is not 1 more than 10 percent of the greenhouse gas 2 emissions from covered fuels during the year 3 2010, paragraph (1)(B)(ii) shall be applied by 4 substituting ‘$0’ for the dollar amount other-5 wise in effect for the calendar year under such 6 paragraph. 7 ‘‘(3) INFLATION ADJUSTMENT.—In the case of 8 any calendar year after 2021, each of the dollar 9 amounts in paragraphs (1)(B) and (2)(A) shall be 10 increased by an amount equal to— 11 ‘‘(A) such dollar amount, multiplied by 12 ‘‘(B) the cost-of-living adjustment deter-13 mined under section 1(f)(3) for the calendar 14 year, determined by substituting ‘calendar year 15 2010’ for ‘calendar year 2016’ in subparagraph 16 (A)(ii) thereof. 17 ‘‘(d) EXEMPTION AND REFUND.—The Secretary 18 shall prescribe such rules as are necessary to ensure the 19 fee imposed by this section is not imposed with respect 20 to any nonemitting use, or any sale or transfer for a non-21 emitting use, including rules providing for the refund of 22 any carbon fee paid under this section with respect to any 23 such use, sale, or transfer. 24 ‘‘(e) EXEMPTIONS.— 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 11 •HR 2307 IH ‘‘(1) AGRICULTURE.— 1 ‘‘(A) FUEL.—If any covered fuel or its de-2 rivative is used on a farm for a farming pur-3 pose, the Secretary shall pay (without interest) 4 to the ultimate purchaser of such covered fuel 5 or its derivative, the total amount of carbon 6 fees previously paid upon that covered fuel or 7 its derivative, as specified by rule of the Sec-8 retary. 9 ‘‘(B) FARM, FARMING USE, AND FARMING 10 PURPOSE.—The terms ‘farm’, ‘farming use’, 11 and ‘farming purpose’ shall have the respective 12 meanings given such terms under section 13 6420(c). 14 ‘‘(C) OTHER GREENHOUSE GASES EMIS-15 SIONS FROM AGRICULTURE.—The carbon fee 16 shall not be levied upon non-fossil fuel green-17 house gas emissions which occur on a farm. 18 ‘‘(2) ARMED FORCES OF THE UNITED 19 STATES.—If any covered fuel or its derivative is 20 used by the Armed Forces of the United States as 21 supplies for vessels of war, vehicles, or electrical 22 power generation equipment, the Secretary shall pay 23 (without interest) to the ultimate purchaser of such 24 covered fuel or its derivative, the total amount of 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 12 •HR 2307 IH carbon fees previously paid upon that covered fuel or 1 its derivative, as specified by rule of the Secretary. 2 ‘‘SEC. 9903. EMISSIONS REDUCTION SCHEDULE. 3 ‘‘(a) IN GENERAL.—An emissions reduction schedule 4 for greenhouse gas emissions from covered fuels is hereby 5 established, as follows: 6 ‘‘(1) REFERENCE YEAR.—The net greenhouse 7 gas emissions during the year 2010 shall be the ref-8 erence amount of emissions and shall be determined 9 from the ‘Inventory of U.S. Greenhouse Gas Emis-10 sions and Sinks: 1990–2010’ published by the Envi-11 ronmental Protection Agency in April of 2012. 12 ‘‘(2) EMISSIONS REDUCTION TARGET.—The 13 first emission reduction target shall be for the year 14 2023. The emission target for each year thereafter 15 shall be the previous year’s target emissions minus 16 a percentage of emissions during the reference year 17 determined in accordance with the following table: 18 ‘‘Year Emissions Reduction Target 2010 Reference year 2021 to 2022 No emissions reduction target 2023 to 2030 5 percent of 2010 emissions per year 2031 to 2050 3 percent of 2010 emissions per year ‘‘(b) ADMINISTRATIVE DETERMINATION.—Not later 19 than 60 days after the beginning of each calendar year 20 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 13 •HR 2307 IH beginning after the enactment of this section, the Sec-1 retary, in consultation with the Administrator, shall deter-2 mine whether actual emissions of greenhouse gases from 3 covered fuels exceeded the emissions reduction target for 4 the preceding calendar year. The Secretary shall make 5 such determination using the same, or appropriately up-6 dated, greenhouse gas accounting method as was used to 7 determine the net greenhouse gas emissions in the ‘Inven-8 tory of U.S. Greenhouse Gas Emissions and Sinks: 1990– 9 2010’ published by the Environmental Protection Agency 10 in April of 2012. 11 ‘‘SEC. 9904. DECOMMISSIONING OF CARBON FEE. 12 ‘‘(a) IN GENERAL.—At such time that— 13 ‘‘(1) the Secretary determines under 9903(b) 14 that actual emissions of greenhouse gases from cov-15 ered fuels is not more than 10 percent of the green-16 house gas emissions during the year 2010, and 17 ‘‘(2) the monthly carbon dividend payable to an 18 adult eligible individual has been less than $20 for 19 3 consecutive years, 20 the Secretary shall decommission in an orderly manner 21 programs administering the carbon fee, the carbon border 22 fee adjustment, and the Carbon Dividend Trust Fund. 23 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 14 •HR 2307 IH ‘‘(b) INFLATION ADJUSTMENT.—In the case of any 1 calendar year after 2021, the $20 amount under sub-2 section (a)(2) shall be increased by an amount equal to— 3 ‘‘(1) such dollar amount, multiplied by 4 ‘‘(2) cost-of-living adjustment determined under 5 section 1(f)(3) for the calendar year, determined by 6 substituting ‘calendar year 2020’ for ‘calendar year 7 2010’ in subparagraph (A)(ii) thereof. 8 ‘‘SEC. 9905. CARBON CAPTURE AND SEQUESTRATION. 9 ‘‘(a) IN GENERAL.—The Secretary, in consultation 10 with the Administrator and the Secretary of Energy, shall 11 prescribe regulations for making payments as provided in 12 subsection (b) to qualified facilities which capture and se-13 quester qualified carbon dioxide or sequester qualified car-14 bon dioxide obtained from one or more qualified facilities. 15 ‘‘(b) PAYMENT AMOUNTS.— 16 ‘‘(1) IN GENERAL.—The Secretary shall make 17 payments to a qualified facility in the same manner 18 as if such payment was a refund of an overpayment 19 of the carbon fee imposed by section 9902, in cases 20 in which such qualified facility— 21 ‘‘(A) uses any covered fuel— 22 ‘‘(i) with respect to which the carbon 23 fee has been paid, and 24 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 15 •HR 2307 IH ‘‘(ii) which results in the emission of 1 qualified carbon dioxide, 2 ‘‘(B) captures such emitted, or an equiva-3 lent amount of, qualified carbon dioxide, and 4 ‘‘(C)(i) sequesters such qualified carbon di-5 oxide in a manner which is safe, permanent, 6 and in compliance with any applicable local, 7 State, and Federal laws, or 8 ‘‘(ii) utilizes such qualified carbon dioxide 9 or an equivalent amount of carbon dioxide in a 10 manner provided in paragraph (3)(C). 11 ‘‘(2) AMOUNT OF REFUND.—The payment de-12 termined under this section shall be an amount 13 equal to the lesser of— 14 ‘‘(A)(i) the adjusted metric tons of quali-15 fied carbon dioxide captured and sequestered or 16 utilized, multiplied by 17 ‘‘(ii) the carbon fee rate during the year in 18 which the carbon fee was imposed by section 19 9902 upon the covered fuel to which such car-20 bon dioxide relates, or 21 ‘‘(B) the amount of the carbon fee imposed 22 by section 9902 with respect to such covered 23 fuel. 24 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 16 •HR 2307 IH ‘‘(3) DEFINITIONS AND SPECIAL RULES.—For 1 purposes of this section— 2 ‘‘(A) QUALIFIED CARBON DIOXIDE; QUALI-3 FIED FACILITY.— 4 ‘‘(i) QUALIFIED CARBON DIOXIDE.— 5 The term ‘qualified carbon dioxide’ has the 6 same meaning given such term under sec-7 tion 45Q(c). 8 ‘‘(ii) QUALIFIED FACILITY.—The term 9 ‘qualified facility’ means any industrial fa-10 cility at which carbon capture equipment is 11 placed in service. 12 ‘‘(B) ADJUSTED TOTAL METRIC TONS.— 13 The adjusted total metric tons of qualified car-14 bon dioxide captured and sequestered or utilized 15 shall be the total metric tons of qualified carbon 16 dioxide captured and sequestered or utilized, re-17 duced by the amount of any carbon dioxide like-18 ly to escape and be emitted into the atmosphere 19 due to imperfect storage technology or other-20 wise, as determined by the Secretary in con-21 sultation with the Administrator. 22 ‘‘(C) UTILIZATION.—The Secretary, in 23 consultation with the Administrator, shall es-24 tablish regulations providing for the methods 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 17 •HR 2307 IH and processes by which qualified carbon dioxide 1 may be utilized so as to exclude that qualified 2 carbon dioxide safely and permanently from the 3 atmosphere. Utilization may include the produc-4 tion of substances such as but not limited to 5 plastics and chemicals. Such regulations shall 6 minimize the escape or further emission of the 7 qualified carbon dioxide into the atmosphere. 8 ‘‘(D) SEQUESTRATION.—Not later than 9 540 days after the date of the enactment of this 10 section, the Secretary, in consultation with the 11 Administrator, shall prescribe regulations iden-12 tifying the conditions under which carbon diox-13 ide may be safely and permanently sequestered. 14 ‘‘(4) COORDINATION WITH CREDIT FOR CARBON 15 DIOXIDE SEQUESTRATION.—At such time that the 16 Secretary prescribes regulations implementing this 17 section, no payment under this section shall be al-18 lowed to a taxpayer to whom a credit has been al-19 lowed for any taxable year under section 45Q. 20 ‘‘SEC. 9906. ADMINISTRATIVE AUTHORITY. 21 ‘‘(a) IN GENERAL.—The Secretary in consultation 22 with the Administrator shall prescribe such regulations, 23 and other guidance, as may be necessary to carry out the 24 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 18 •HR 2307 IH purposes of this subtitle and assess and collect the carbon 1 fee imposed by section 9902. 2 ‘‘(b) SPECIFICALLY.—Such regulations and guidance 3 shall include— 4 ‘‘(1) the identification of an effective point in 5 the production, distribution, or use of a covered fuel 6 for collecting such carbon fee, in such a manner so 7 as to minimize administrative burden and maximize 8 the extent to which full fuel cycle greenhouse gas 9 emissions from covered fuels have the carbon fee lev-10 ied upon them, 11 ‘‘(2) the identification of covered entities which 12 shall be liable for the payment of the carbon fee, 13 ‘‘(3) requirements for the monthly payment of 14 such fees, 15 ‘‘(4) as may be necessary or convenient, rules 16 for distinguishing between different types of covered 17 fuels, 18 ‘‘(5) as may be necessary or convenient, rules 19 for distinguishing between a covered fuel’s green-20 house gas content and its upstream greenhouse gas 21 emissions, 22 ‘‘(6) rules to ensure that no covered fuel has 23 the carbon fee or carbon border fee adjustment im-24 posed upon it more than once, and 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 19 •HR 2307 IH ‘‘(7) rules to ensure that the domestic imple-1 mentation of the carbon fee coordinate with the im-2 plementation of the carbon border fee adjustment of 3 chapter 102. 4 ‘‘CHAPTER 102—CARBON BORDER FEE 5 ADJUSTMENT 6 ‘‘Sec. 9908. Carbon border fee adjustment. ‘‘Sec. 9909. Administration of the carbon border fee adjustment. ‘‘Sec. 9910. Allocation of carbon border fee adjustment revenues. ‘‘Sec. 9911. Treaties and international negotiations. ‘‘SEC. 9908. CARBON BORDER FEE ADJUSTMENT. 7 ‘‘(a) IN GENERAL.—The fees imposed by, and re-8 funds allowed under, this section shall be referred to as 9 the ‘carbon border fee adjustment’. 10 ‘‘(b) PURPOSE.—The purpose of the carbon border 11 fee adjustment is to protect animal, plant, and human life 12 and health, to conserve exhaustible natural resources by 13 preventing carbon leakage, and to facilitate the creation 14 of international agreements. 15 ‘‘(c) IMPORTS TO THE UNITED STATES.— 16 ‘‘(1) IMPORTED COVERED FUELS FEE.—In the 17 case of any person that imports into the United 18 States any covered fuel, there shall be imposed a fee 19 equal to the total carbon fee that would be imposed 20 on the fuel’s greenhouse gas content under the do-21 mestic carbon fee, including processing emissions. 22 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 20 •HR 2307 IH ‘‘(2) IMPORTED CARBON-INTENSIVE PRODUCTS 1 FEE.—In the case of any person that imports into 2 the United States any carbon-intensive product, 3 there shall be imposed a fee equal to the total car-4 bon fee which would have accumulated upon the 5 greenhouse gas content of the imported carbon-in-6 tensive product had the imported carbon-intensive 7 product been produced domestically and subject to 8 the domestic carbon fee. 9 ‘‘(3) MODIFICATIONS.—The Secretary shall 10 make an administrative determination of whether 11 any class of imported covered fuels or class of im-12 ported carbon-intensive product is carrying any total 13 foreign carbon cost. The Secretary shall make a de-14 termination of whether international law or the en-15 hancement of global greenhouse gas mitigation ef-16 forts require that those foreign cost of carbon be de-17 ducted from the border carbon fee adjustment deter-18 mined in subsection (c)(1) or subsection (d)(1). 19 ‘‘(4) FOREIGN COST OF CARBON; FOREIGN CAR-20 BON COSTS.—For purposes of this subsection, the 21 term ‘foreign cost of carbon’ or ‘foreign carbon cost’ 22 means the explicit price a foreign jurisdiction places 23 upon the emission of greenhouse gas pollution to the 24 atmosphere through law or regulation. Such price 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 21 •HR 2307 IH shall be expressed as the price per metric ton of 1 CO2-e. 2 ‘‘(d) REFUND ON EXPORTS FROM UNITED 3 STATES.— 4 ‘‘(1) COVERED FUELS.—Under regulations pre-5 scribed by the Secretary, in the case of a covered 6 fuel produced in the United States with respect to 7 which the fee under section 9902 was paid, there 8 shall be allowed as a credit or refund (without inter-9 est) to any exporter of such covered fuels an amount 10 equal to the total carbon fee levied upon the ex-11 ported covered fuel up to the time of its exportation, 12 including processing emissions. Any such credit or 13 refund shall be allowed in the same manner as if it 14 were an overpayment of tax imposed by section 15 9902. 16 ‘‘(2) CARBON-INTENSIVE PRODUCTS.—Under 17 regulations prescribed by the Secretary, there shall 18 be allowed a credit or refund (without interest) to 19 exporters of carbon-intensive products manufactured 20 or produced in the United States an amount equal 21 to the total carbon fees accumulated upon the green-22 house gas content of the exported carbon-intensive 23 product up to the time of exportation. Any such 24 credit or refund shall be allowed in the same manner 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 22 •HR 2307 IH as if it were an overpayment of the fee imposed by 1 section 9902 or 9904. 2 ‘‘SEC. 9909. ADMINISTRATION OF THE CARBON BORDER 3 FEE ADJUSTMENT. 4 ‘‘(a) GENERALLY.—The Secretary in consultation 5 with the Administrator shall prescribe regulations and 6 guidance which implement the carbon border fee adjust-7 ment under section 9908. 8 ‘‘(b) COLLABORATION.—In administering any aspect 9 of the border carbon fee adjustment it is the sense of Con-10 gress that the Secretary should collaborate with author-11 ized officers of any jurisdiction, including sub-national 12 governments, affected by the carbon border fee adjust-13 ment. 14 ‘‘(c) METHODOLOGY.—In administering the border 15 carbon fee adjustment, the Secretary shall use methodolo-16 gies, procedures, and data which as may be necessary or 17 convenient— 18 ‘‘(1) disaggregate a product’s greenhouse gas 19 content; 20 ‘‘(2) are consistent with international law and 21 facilitate international cooperation; 22 ‘‘(3) in the case of incomplete data, use cus-23 tomary methods of interpolation that favor enhanced 24 mitigation and facilitate international cooperation; 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 23 •HR 2307 IH ‘‘(4) avoid the double pricing of greenhouse gas 1 emissions; and 2 ‘‘(5) harmonize the border carbon fee adjust-3 ment with the domestic carbon fee so as to ensure 4 all covered fuels used in the United States are sub-5 ject to the carbon fee. 6 ‘‘(d) SCHEDULE.—The Secretary shall— 7 ‘‘(1) begin implementation the border carbon 8 fee adjustment for covered fuels at the same time as 9 the implementation of the carbon fee; and 10 ‘‘(2) begin implementation of the border carbon 11 fee adjustment for carbon-intensive products within 12 two years of the date of the enactment of the En-13 ergy Innovation and Carbon Dividend Act of 2021. 14 ‘‘(e) PROCEDURE.—The Secretary shall— 15 ‘‘(1) establish fair, timely, impartial, and as 16 necessary confidential procedures by which the im-17 porter of any carbon-intensive product or any cov-18 ered fuel may petition the Secretary to revise the 19 Secretary’s determination of its border carbon fee 20 adjustment liability calculated under section 21 9908(c)(1); 22 ‘‘(2) establish fair, timely, impartial, and as 23 necessary confidential procedures by which any ex-24 porter of any product from the United States may 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 24 •HR 2307 IH petition the Secretary to include that exported prod-1 uct on the list of carbon-intensive products; and 2 ‘‘(3) establish fair, timely, impartial, and as 3 necessary confidential procedures by which the ex-4 porter of any carbon-intensive product or any cov-5 ered fuel may petition the Secretary to revise the 6 Secretary’s determination of its border carbon fee 7 adjustment refund calculated under section 9908(d). 8 ‘‘(f) SHIPMENTS FROM THE UNITED STATES TO THE 9 TERRITORIES OF THE UNITED STATES.—Notwith-10 standing any other treaty, law, or policy, shipments of cov-11 ered fuels or carbon-intensive products from the United 12 States to Guam, the United States Virgin Islands, Amer-13 ican Samoa, Puerto Rico, and the Northern Mariana Is-14 lands shall be eligible for a refund of the carbon fee under 15 section 9908(d). 16 ‘‘(g) IMPORTS TO THE TERRITORIES OF THE UNITED 17 STATES.—Notwithstanding any other treaty, law, or pol-18 icy, imports of covered fuels or carbon-intensive products 19 to Guam, the United States Virgin Islands, American 20 Samoa, Puerto Rico, and the Northern Mariana Islands 21 shall not be subject to section 9908(c). 22 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 25 •HR 2307 IH ‘‘SEC. 9910. ALLOCATION OF CARBON BORDER FEE ADJUST-1 MENT REVENUES. 2 ‘‘The revenues collected under this chapter may be 3 used to supplement appropriations made available in fiscal 4 years 2022 and thereafter— 5 ‘‘(1) to U.S. Customs and Border Protection, in 6 such amounts as are necessary to administer the 7 carbon border fee adjustment, then 8 ‘‘(2) to the Green Climate Fund, created by de-9 cision 3/CP.17 adopted at the 17th Conference of 10 the Parties to the United Nation Framework Con-11 vention on Climate Change held in Durban, Novem-12 ber 28 to December 11, 2011. 13 ‘‘SEC. 9911. TREATIES AND INTERNATIONAL NEGOTIA-14 TIONS. 15 ‘‘(a) CONFORMANCE WITH INTERNATIONAL TREA-16 TIES.—In the case that the Appellate Body of the World 17 Trade Organization, or any other authoritative inter-18 national treaty interpreter, shall find any portion of the 19 carbon border fee adjustment under this chapter to violate 20 any treaty to which the United States is a party, the Sec-21 retary of State is authorized to alter that aspect of such 22 carbon border fee adjustment found to violate a treaty ob-23 ligation so as to bring the carbon border fee adjustment 24 into conformance with international law. 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 26 •HR 2307 IH ‘‘(b) INTERNATIONAL NEGOTIATIONS.—The Con-1 gress finds the international mitigation of greenhouse gas 2 emissions to be of national importance. Therefore, the 3 Congress encourages the Secretary of State, or the Sec-4 retary’s designee, to commence and complete negotiations 5 with other nations with the goal of forming treaties, envi-6 ronmental agreements, accords, partnerships or any other 7 instrument that effectively reduces global greenhouse gas 8 emissions to zero percent of 2010 levels by 2050 and 9 which respect the principle of common but differentiated 10 responsibilities and respective capabilities. 11 ‘‘(c) SUSPENSION OF THE CARBON BORDER FEE AD-12 JUSTMENT.—The Secretary may suspend the border car-13 bon fee adjustment, in whole or in part— 14 ‘‘(1) when, in the determination of the Sec-15 retary, a country has implemented greenhouse gas 16 mitigation policies sufficient to contribute to a global 17 net reduction of greenhouse gas emissions to zero by 18 2050. In making such determination, the Secretary 19 may partially suspend particular provisions of the 20 carbon border fee adjustment. In making the deter-21 mination, the Secretary shall consult with the im-22 porting country. In making the determination, the 23 Secretary shall follow all existing treaty obligations. 24 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 27 •HR 2307 IH The Secretary shall review any carbon border fee ad-1 justment suspension at least every 5 years, or 2 ‘‘(2) by treaty or other international agreement 3 that meets the criteria of section 9911(c)(1) and in-4 cludes provisions for the suspension of the border 5 carbon fee adjustment.’’. 6 SEC. 4. ESTABLISHMENT OF THE CARBON DIVIDEND TRUST 7 FUND. 8 (a) IN GENERAL.—Subchapter A of chapter 98 of the 9 Internal Revenue Code of 1986 is amended by adding at 10 the end the following: 11 ‘‘SEC. 9512. CARBON DIVIDEND TRUST FUND. 12 ‘‘(a) ESTABLISHMENT AND FUNDING.—There is 13 hereby established in the Treasury of the United States 14 a trust fund to be known as the ‘Carbon Dividend Trust 15 Fund’, consisting of such amounts as may be appropriated 16 to such trust fund as provided for in this section. 17 ‘‘(b) TRANSFERS TO THE CARBON DIVIDEND TRUST 18 FUND.—There is hereby appropriated to the Carbon Divi-19 dend Trust Fund amounts equal to the fees received into 20 the Treasury less any amounts refunded or paid under 21 section 9902(d) or 9905 of chapter 101 for each month. 22 ‘‘(c) EXPENDITURES.—Amounts in the trust fund 23 shall be available for the following purposes: 24 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 28 •HR 2307 IH ‘‘(1) ADMINISTRATIVE EXPENSES.—So much of 1 the expenses necessary to administer the Carbon 2 Dividend Trust Fund for each year, as does not ex-3 ceed— 4 ‘‘(A) in the case of the first 5 calendar 5 years ending after the date of the enactment of 6 this section, the administrative expenses for any 7 year may not exceed 8 percent of amounts ap-8 propriated to the Carbon Dividend Trust Fund 9 during such year, and 10 ‘‘(B) in the case of any calendar year 11 thereafter, 2 percent of the 5-year rolling aver-12 age of the amounts appropriated to the Carbon 13 Dividend Trust Fund. 14 ‘‘(2) OTHER ADMINISTRATIVE EXPENSES.—So 15 much of the expenses as are necessary to administer 16 chapter 101 for any year as does not to exceed 0.60 17 percent of the amounts appropriated to the Carbon 18 Dividend Trust Fund for the previous year, and fur-19 ther limited as follows: 20 ‘‘(A) The Department of the Treasury. 21 ‘‘(B) The Social Security Administration. 22 ‘‘(C) The Environmental Protection Agen-23 cy. 24 ‘‘(D) Department of State. 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 29 •HR 2307 IH ‘‘(3) CARBON DIVIDEND PAYMENTS.— 1 ‘‘(A) IN GENERAL.—From the amounts in 2 the Carbon Dividend Trust Fund made avail-3 able under paragraphs (1) and (2) of this sub-4 section for any year, the Secretary shall for 5 each month beginning no more than 270 days 6 after the date of the enactment of the Energy 7 Innovation and Carbon Dividend Act of 2021, 8 make carbon dividend payments to each eligible 9 individual. 10 ‘‘(B) PRO-RATA SHARE.—A carbon divi-11 dend payment is one pro-rata share for each 12 adult, and half a pro-rata share for each child 13 under 19 years old, of amounts available for the 14 month in the Carbon Dividend Trust Fund. 15 ‘‘(C) ELIGIBLE INDIVIDUAL.—The term 16 ‘eligible individual’ means, with respect to any 17 month, any natural living person who has a 18 valid Social Security number or taxpayer identi-19 fication number and is a citizen or lawful resi-20 dent of the United States (other than any indi-21 vidual who is a citizen of any possession of the 22 United States and whose bona fide residence is 23 outside of the United States). The Secretary is 24 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 30 •HR 2307 IH authorized to verify an individual’s eligibility to 1 receive a carbon dividend payment. 2 ‘‘(D) FEE TREATMENT OF PAYMENTS.— 3 Amounts paid under this subsection shall be in-4 cludible in gross income. 5 ‘‘(E) FEDERAL PROGRAMS AND FEDERAL 6 ASSISTED PROGRAMS.—The carbon dividend 7 amount received by any individual shall not be 8 taken into account as income and shall not be 9 taken into account as resources for purposes of 10 determining the eligibility of such individual or 11 any other individual for benefits or assistance, 12 or the amount or extent of benefits or assist-13 ance, under any Federal program or under any 14 State or local program financed in whole or in 15 part with Federal funds. 16 ‘‘(F) ADVANCE PAYMENT.—The Secretary 17 shall transfer to the Carbon Dividend Trust 18 Fund such amounts as are necessary for the 19 disbursement of an advanced carbon dividend to 20 all eligible individuals as follows: 21 ‘‘(i) An advanced carbon dividend 22 shall be the same as the anticipated first 23 carbon dividend required to be distributed 24 under subparagraph (A) and shall be dis-25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 31 •HR 2307 IH tributed the month prior to the first collec-1 tion of the carbon fee. 2 ‘‘(ii) Total amounts disbursed as ad-3 vanced carbon dividends shall be deducted 4 from the carbon dividends on a pro-rata 5 basis over the first 3 years after the dis-6 bursement of the first carbon dividends. 7 ‘‘(d) ADMINISTRATIVE AUTHORITY.—The Secretary 8 shall promulgate rules, guidance, and regulations useful 9 and necessary to implement the Carbon Dividend Trust 10 Fund. 11 ‘‘(e) ASSIGNMENT OF BENEFITS.—The right of any 12 person to any future payment under this chapter shall not 13 be transferable or assignable, at law or in equity, and none 14 of the moneys paid or payable or rights existing under 15 subsection (c)(3) shall be subject to execution, levy, at-16 tachment, garnishment, or other legal process, or to the 17 operation of any bankruptcy or insolvency law.’’. 18 (b) CLERICAL AMENDMENT.—The table of sections 19 for subchapter A of chapter 98 of such Code is amended 20 by adding at the end the following new item: 21 ‘‘Sec. 9512. Carbon Dividend Trust Fund.’’. SEC. 5. LIMITED DISCLOSURE OF INFORMATION. 22 Section 6103(l) of the Internal Revenue Code of 1986 23 is amended by adding at the end the following new para-24 graphs: 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 32 •HR 2307 IH ‘‘(23) LIMITED DISCLOSURE OF IDENTITY IN-1 FORMATION RELATING TO CARBON DIVIDEND PAY-2 MENTS.— 3 ‘‘(A) DEPARTMENT OF TREASURY.—Indi-4 vidual identity information shall, without writ-5 ten request, be open to inspection by or disclo-6 sure to officers and employees of the Depart-7 ment of the Treasury whose official duties re-8 quire such inspection or disclosure for purposes 9 of administering section 9512 (relating the Car-10 bon Dividend Trust Fund). 11 ‘‘(B) COMMISSIONER OF SOCIAL SECU-12 RITY.—The Commissioner of Social Security 13 shall, on written request, disclose to officers 14 and employees of the Department of the Treas-15 ury individual identity information which has 16 been disclosed to the Social Security Adminis-17 tration as is necessary to administer section 18 9512. 19 ‘‘(C) RESTRICTION ON DISCLOSURE.—In-20 formation disclosed under this paragraph shall 21 be disclosed only for purposes of, and to the ex-22 tent necessary in, carrying out section 9512.’’. 23 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 33 •HR 2307 IH SEC. 6. NATIONAL ACADEMY OF SCIENCES REVIEW OF CAR-1 BON FEE AND EMISSIONS REDUCTION 2 SCHEDULE. 3 (a) IN GENERAL.—Not later than 5 years after the 4 date of the enactment of this Act, the Secretary of Energy 5 shall enter into an agreement with the National Academy 6 of Sciences to prepare a report relating to the carbon fee 7 imposed by section 9902 of the Internal Revenue Code of 8 1986 and the emissions reductions schedule established 9 under section 9903 of such Code. 10 (b) REPORT REQUIREMENTS.—Such report shall— 11 (1) assess the efficiency and effectiveness of the 12 carbon fee in achieving the emissions reduction tar-13 gets set forth in section 9903 of such Code; 14 (2) describe and make recommendations on 15 whether the carbon fee rate and annual increases 16 prescribed by section 9902(c) of such Code should 17 be adjusted in order to optimize the efficiency and 18 effectiveness of this Act in achieving the emissions 19 reduction targets set forth in section 9903 of such 20 Code; 21 (3) describe the potential of the carbon fee to 22 achieve future emissions targets set forth in section 23 9903(a) of such Code through the year 2050; 24 (4) describe and evaluate the effectiveness of 25 the carbon fee in reducing emissions from key sec-26 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 34 •HR 2307 IH tors of the economy, including sectors of the econ-1 omy that have decreased their carbon emissions, sec-2 tors of the economy that have increased their carbon 3 emissions, and sectors of the economy in which car-4 bon emissions have not changed; 5 (5) make findings and recommendations to 6 Federal departments and agencies and to Congress 7 on actions that could be taken to reduce carbon 8 emissions in the sectors of the economy in which 9 carbon emissions have not decreased; 10 (6) make findings and recommendations on ad-11 justing regulations enacted under the Clean Air Act 12 and other Federal laws that affect economic sectors 13 achieving the emissions reduction targets set forth in 14 section 9903 of such Code; and 15 (7) provide an assessment of any other factors 16 determined to be material to the program’s effi-17 ciency and effectiveness in achieving the goals set 18 forth in this Act. 19 (c) REPORT MADE PUBLICLY AVAILABLE.—Not later 20 than one year after the review in subsection (a) has com-21 menced, the Secretary of Energy shall submit to Congress 22 the report required under subsection (a). Such report shall 23 be made electronically available to the public and open to 24 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 35 •HR 2307 IH public comment for at least 60 days before the final sub-1 mission to Congress. 2 SEC. 7. IMPACT OF CARBON FEE ON BIOMASS USE AND 3 CARBON SINKS. 4 (a) STUDY OF BIOMASS.—The Secretary of Energy 5 shall enter into an agreement with the National Academy 6 of Sciences and the Administrator of the Environmental 7 Protection Agency to conduct a study, make recommenda-8 tions, and submit a report regarding the impact of the 9 carbon fee on the use of biomass as an energy source and 10 the resulting impacts on carbon sinks and biodiversity. 11 (b) STUDY REQUIREMENTS.—The study conducted 12 under subsection (a) by the National Academy of Sciences 13 shall include analysis, documentation, and determinations 14 on— 15 (1) the carbon fee and its impact on the use of 16 biomass as an energy source and greenhouse gas 17 emissions from the use of biomass as an energy 18 source; 19 (2) the impacts of the use of biomass as an en-20 ergy source on carbon sinks and biodiversity; and 21 (3) the various types of biomass that are being 22 used as an energy source. 23 (c) RECOMMENDATIONS.—Based on the findings and 24 conclusions of the study, the National Academy of 25 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 36 •HR 2307 IH Sciences shall make recommendations to Federal depart-1 ments and agencies and to Congress. The recommenda-2 tions shall include any actions that should be taken to 3 mitigate impacts of the carbon fee on— 4 (1) increasing greenhouse gas emissions from 5 the use of biomass as an energy source; and 6 (2) degradation of carbon sinks and biodiversity 7 relating to the use of biomass as an energy source. 8 (d) REPORT.—The National Academy of Sciences 9 shall prepare a report that includes any findings and rec-10 ommendations made pursuant to this section and, not 11 later than 18 months after the date of the enactment of 12 this Act, make such report electronically available to the 13 public. 14 SEC. 8. EFFECTIVE DATE. 15 The amendments made by this Act shall take effect 16 on the date of the enactment of this Act, except the carbon 17 fee under section 9902 of the Internal Revenue Code of 18 1986 shall apply to uses, sales, or transfers no more than 19 270 days after the date of the enactment of this Act. 20 SEC. 9. PRINCIPLE OF INTERPRETATION. 21 In the case of ambiguity, the texts of this statute and 22 its amending texts shall be interpreted so as to allow for 23 the most effective abatement of greenhouse gas emissions. 24 VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S 37 •HR 2307 IH SEC. 10. NO PREEMPTION OF STATE LAW. 1 (a) IN GENERAL.—Nothing in this Act shall preempt 2 or supersede, or be interpreted to preempt or supersede, 3 any State law or regulation. 4 (b) NO PREEMPTION OF STATE COMMON LAW OR 5 STATUTORY CAUSES OF ACTION.—Noting in this Act, nor 6 any standard, rule, requirement, risk evaluation, or assess-7 ment created or implemented pursuant to this Act, shall 8 be construed to preempt any State common law or State 9 statutory law creating a remedy for civil relief. 10 Æ VerDate Sep 11 2014 17:46 Jun 11, 2021 Jkt 019200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6301 E:\BILLS\H2307.IH H2307pa m t m a n n o n D S K B C 0 7 H B 2 P R O D w i t h B I L L S