Delaney Applauds President’s Clean Power Plan, Calls for Comprehensive Climate Action
WASHINGTON – The White House and the Environmental Protection Agency have released the final version of the Administration’s Clean Power Plan, the first-ever national standards to limit carbon pollution from power plants. The new environmental protections call for 2005 levels of carbon dioxide emissions to be reduced by 32% by 2030.
In May, Congressman John K. Delaney (MD-6) introduced the Tax Pollution, Not Profits Act, legislation to reduce carbon pollution and combat climate change in a pro-growth, economically responsible manner.
“Climate change is one of the defining challenges of our time, threatening our health, our economy and our national security and it is time to act,” said Congressman Delaney. “I applaud the White House for taking the first steps towards limiting carbon emissions. But climate change is a big problem that goes beyond just power plants and will require a bigger solution, which is why I’ve always supported a carbon tax, an approach that can harness market forces to encourage innovation and help working families and those directly impacted by new technologies. I am also pleased that states will have the option to implement a state-based carbon tax, a change I called for last year. As the Pope made clear, we have a moral obligation to leave a healthy planet to future generations and I will continue to work to build support for my Tax Pollution, Not Profits Act in Congress.”
Last year, Delaney filed the State’s Choice Act, which gave states the additional option of establishing a state-based carbon tax to meet the new carbon standards and formally requested the change in writing.
The Tax Pollution, Not Profits Act
Establishes a federal tax on carbon pollution
- Places a tax on Green House Gas (GHG) emissions at $30 per metric ton of carbon dioxide or carbon dioxide equivalent in 2015, increasing each subsequent year at 4% above inflation.
- New carbon tax uses market forces and private sector innovation to reduce greenhouse gas pollution. Businesses benefit from predictable, market-driven approach.
Lowers the corporate tax rate and returns revenues to the economy
- The legislation reduces the corporate tax rate from 35% to 28%, helping companies mitigate higher energy costs and, importantly, makes U.S. companies more competitive.
- Increasing U.S. economic competitiveness in a global economy will lead to gains in job creation, economic growth and increased domestic investment.
Helps Impacted Coal Industry Workers
- Creates a new multi-billion dollar aid program administered by the Department of Labor (DOL) to assist workers in the coal industry that may be displaced as a result of the legislation.
- The assistance can include: worker retraining programs, financial assistance with relocation expenses, health care, early retirement and other benefits.
- There is precedent for the DOL to administer this kind of program. Since 1973 the Department of Labor has administered benefits to coal miners and their survivors impacted by black lung disease.
Protects middle class and working families with an Energy Refund
- To ensure that low and middle-income households are not negatively impacted by the costs of transitioning to new energy sources, a portion of the revenues collected from the pollution tax will be redirected to low-income and middle-class working families via an Energy Refund.
- Households at or below 150% of the federal poverty line will receive direct monthly payments to fully offset increased energy costs.
- Households between 150-200% of the federal poverty line will receive a reduced monthly payment on a sliding scale. Households over 200% poverty level will be eligible for a refundable tax credit, with benefits also on a sliding scale.