Us Congress Senate Bill SB5107

Us Congress 2023-2024 Regular Session

• Introduced: 9/19/24
• Refer: 9/19/24

Caption

America's Clean Future Fund Act

Impact

The impact of SB5107 on state laws will be substantial, as it seeks to create a consistent national approach to carbon emissions through financial incentives and fees. The legislation aims to facilitate a transition toward greener energy practices while providing financial support to entities affected by these changes. Importantly, it includes mechanisms for rebates to lower-income households and ensures that these payments are not counted as income for eligibility in other federal programs. By investing in environmental justice communities, the bill also addresses disproportionate burdens of pollution and climate change effects on marginalized groups.

Summary

SB5107, entitled the 'America’s Clean Future Fund Act', introduces a framework for imposing a carbon fee on entities that emit greenhouse gases in order to combat climate change. The bill establishes the Climate Change Finance Corporation (C2FC), which would oversee the collection of carbon fees and allocate funds for clean energy projects and climate resilience activities. It specifies that the carbon fee will begin after December 31, 2025, with introductory fees set at $65 per ton in 2026, escalating annually based on inflation and policy adjustments. A significant objective is to reduce reliance on fossil fuels and promote the adoption of low- and zero-emission technologies.

Contention

There are several notable points of contention surrounding SB5107. Advocates praise it for its potential to address climate change proactively and to stimulate job growth in the renewable energy sector. However, opponents question the economic implications of imposing a carbon fee, particularly on industries heavily reliant on fossil fuels. Concerns are raised about the burden this may place on consumers through increased costs. Additionally, there are debates regarding accountability in how the collected fees are spent, particularly in ensuring they support clean energy innovation and job transitions in affected communities.