Overnight Energy & Environment – Brought to you by the American Petroleum Institute – Democrats Consider Potential Carbon Price in Reconciliation Bill


Welcome to Thursday’s Energy and Environment Show, your source for the latest news focused on energy, the environment and beyond. Subscribe here: thehill.com/newsletter-inscription.

Today we take a look at Democrats who float the price of carbon in their spending agenda, progressives criticizing the Line 3 pipeline and a proposed House tax aimed at boosting solar power.

For The Hill, we are Rachel Frazin and Zack Budryk. Write to us with tips: [email protected] and [email protected]. Follow us on twitter: @RachelFrazin and @BudrykZack.

Let’s go.

But first, a programming note: there will be no Overnight Energy on Monday. We will be back on Tuesday.

Democrats float carbon price in spending program

Democrats on the Senate Finance Committee on Friday pitched the idea of ​​a carbon price as one of many options they are considering to help pay for their $ 3.5 trillion spending, according to a document. obtained by The Hill.

The document comes as Democrats are in the process of crafting the reconciliation bill – and it’s unclear which of the policies listed therein, including the price of carbon, will ultimately be part of the package.

It lists three potential approaches for its carbon pricing system:

  • A tax on the carbon dioxide content of “main” fossil fuels like coal, oil and natural gas during extraction. This tax would start at $ 15 a tonne and increase over time.
  • A tax per tonne of carbon dioxide emissions from major industries, including steel, cement and chemicals
  • A tax per barrel on crude oil

The document indicated that each of these provisions would come with a refund or other form of relief for low-income taxpayers and a border adjustment to ensure that foreign companies must also pay the tax. tax.

It also proposes the repeal of “core” tax subsidies on fossil fuels, including tax credits and deductions for extraction, “preferential treatment” for foreign income and the possibility for pipeline companies to avoid corporate income tax.

And they suggest a 20-cent fee on the sale of virgin plastic used to make single-use plastics.

Learn more about some of the Democrats’ other new tax proposals here..

A MESSAGE FROM THE API

The American Petroleum Institute published a new analysis the impact of the natural gas and petroleum industry on the US economy. Find out how the industry fuels each state’s economy here.

Members of ‘squad’ call on Biden to shut down Line 3 pipeline in Minnesota

Several members of the “squad” – a group of progressive House Democrats – called President BidenJoe Biden Former ISIS operative pleads guilty to kidnappings and deaths of Americans Defense and National Security – Afghanistan’s mental scars Bidens visits wounded servicemen at Walter Reed MORE to halt construction of the Line 3 pipeline at a press conference in Minneapolis on Friday, citing indigenous opposition and environmental risks.

representing Ayanna pressleyAyanna PressleyOn The Money – Businesses Consider Charging Unvaccinated Workers Progressive Democratic Lawmakers Urge Biden To Replace Powell As Fed Chairman’s Expulsion Decision Put New Pressure on Congress MORE (D-Mass.) Called the pipeline closure “obvious,” adding that “President Biden has the opportunity and … the responsibility to keep his word to be the climate chairman, and must order the Army Corps of Engineers to revoke the permit for line 3.

“The voices of indigenous peoples are often not given priority … we want this issue raised and important enough for the President to take action,” the representative added. Ilhan OmarIlhan Omar Progressives breathe a sigh of relief after Afghan withdrawal Disturbing warnings from the last men in Afghanistan standing Photos of the week: Evacuees from Afghanistan, Paralympic Games and French gunfire MORE (D-Minn.).

A reminder : In June, the Ministry of Justice supported a Trump-era approval of a permit for the pipeline, indicating in a legal file that the government had met its legal obligation to consider the environmental impacts of the project.

Meanwhile, the progressives haven’t finished: Representatives are expected to visit the pipeline site in Bemidji on Saturday, where they will meet with indigenous leaders opposed to the project.

Read more here.

Democrats on key panel propose solar tax incentive bill

The legislation would allow solar companies to be eligible for a full value production tax credit. Currently, this incentive is available for wind and geothermal energy.

The bill’s release comes as President Biden and congressional leaders passed a spending package that included incentives for renewable energy as well as funding for child care, education , health care and other democratic priorities a top priority. Democrats plan to push all spending through the budget reconciliation process to avoid the need for any GOP support in the Senate.

And they invoke Biden’s clean electricity surge. Sponsors of the solar bill say it should be included in the reconciliation measure because it would help advance Biden’s goal of achieving carbon-free power generation by 2035.

“Let’s put this in the reconciliation package so that we can help make the United States carbon-free by 2035,” said Rep. Thomas Suozzi (DN.Y.), a sponsor of the solar bill, in a statement. . “This legislation makes this goal much easier to achieve. “

Learn more about the bill here.

WHAT WE READ

The American Petroleum Institute published a new analysis the impact of the natural gas and petroleum industry on the US economy. Find out how the industry fuels each state’s economy here.

ICYMI

That’s all for today, thanks for reading. Check out The Hill’s energy and environment page for the latest news and coverage. See you on Tuesday.


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