Us Congress Senate Bill SB5495

Us Congress 2023-2024 Regular Session

Caption

A bill to cap the emissions of greenhouse gases through a requirement to purchase carbon permits, to distribute the proceeds of such purchases to eligible individuals, and for other purposes.

Impact

The legislation's impact is significant, as it modifies existing environmental laws by imposing a structured cap-and-trade mechanism that will affect various sectors including fossil fuel production and processing. Entities are expected to actively manage their emissions through carbon permits, which are auctioned periodically. The revenue generated from these permit sales will be redistributed to eligible individuals under a proposed Healthy Climate Dividend scheme, ensuring that a portion of the money benefits the community directly. Furthermore, the bill includes provisions that impose penalties for non-compliance with permit requirements, thereby incentivizing proper emissions management among businesses and other entities.

Summary

Senate Bill 5495, known as the Healthy Climate and Family Security Act of 2024, aims to establish a framework for capping greenhouse gas emissions in the United States via a system of carbon permits. Under this bill, entities responsible for significant emissions will be required to purchase carbon permits, which will be issued and regulated by the Secretary of the Treasury in consultation with the Environmental Protection Agency. This structured approach seeks to reduce greenhouse gas emissions progressively, establishing specific reduction targets for several years leading up to 2050, at which point emissions should reach 90% lower than 2015 levels. The bill also positions itself to address climate change in a manner that promotes economic growth and emphasizes community protections, particularly for those affected most by pollution.

Contention

While the legislation is designed to create a uniform approach to combat climate change, it is not without contention. Opponents of the bill express concerns over its potential economic impact, particularly regarding small businesses and their ability to absorb additional costs associated with purchasing carbon permits. Additionally, there are discussions surrounding the equity of the Healthy Climate Dividend, questioning whether it will adequately compensate those most disadvantaged by climate-related policies. Advocates insist that the environmental benefits, particularly the focus on frontline communities disproportionately affected by pollution, justify the regulatory measures put forth in the bill. The ongoing dialogue raises important questions about balancing economic growth with environmental responsibility.