Resolution Calling for Support of National Carbon Fee and: Dividend Legislation:
WHEREAS, the costs of climate change—including destabilized weather and extreme weather events, rising sea levels, and health impacts—now pose a substantial threat to the health, prosperity, and security of Chicagoans and all Americans; and
WHEREAS, the City of Chicago recognizes that rising carbon emissions are exposing and will continue to expose Chicagoans to the risks of increasingly extreme heat in the summers, heavier rainstorms, more frequent and severe flooding, and stresses on the public health and economy; and
WHEREAS, presently, the environmental, health and social costs of carbon emissions are not included in the price of fossil fuels, but rather these externalized-costs are borne by all Chicagoans, Americans, and the world's citizens; and
WHEREAS, Chicago and cities across the country have pledged to uphold the Paris Agreement committing to aid in limiting the increase in global temperature to below 2 degrees Celsius above pre-industrjal levels; and
WHEREAS, economists overwhelmingly support a "carbon tax" or "carbon fee" as the most effective, most efficient way to reduce emissions, and sound economic policy in its own right.
WHEREAS, Carbon Fee & Dividend will place a fee on fossil fuels at the source (the well, mine or port of entry), beginning at $15 per metric ton of C02 equivalent emissions, and steadily increase annually at the rate of $10 per metric ton; and
WHEREAS, all revenues so collected will be returned to American households on a per capita basis as a monthly dividend, more than offsetting any increased costs of carbon-based products in most American households; and
WHEREAS, a border adjustment will assess a fee or rebate on goods traded with foreign countries which do not establish a comparable price on carbon emissions, thus protecting American businesses from foreign businesses who do not incur the costs of carbon pricing measures; and
WHEREAS, Carbon Fee & Dividend legislation would create jobs, grow.the economy, save lives, and reduce greenhouse gas emissions; and
WHEREAS, Carbon Fee & Dividend is consistent with and in several instances facilitates the realization of the goals of the Sustainable Chicago Action Agenda; and
WHEREAS, a national carbon tax can be implemented quickly and efficiently because the federal government already has in place mechanisms, such as the Internal Revenue Service, needed to implement and enforce the fee, and already|1010|
collects taxes from fossil fuel producers and importers; and
WHEREAS, a national carbon tax, levied at the point of extraction (well, mine, or port of entry), need only be collected once and is transparent and simple by design; and
WHEREAS, a national carbon tax would make the United States a leader in | mitigating climate change and in the clean energy technologies of the 21st century \ and would .incentivize other countries to enact similar carbon taxes, reducing global carbon emissions without the need for complex international agreements; now, therefore
BE IT RESOLVED, that the City Council of the City of Chicago, assembled this eighth day of October, 2017, do hereby call upon the United States Congress to pass legislation creating a national Carbon Fee & Dividend system to cut carbon emissions and mitigate climate change, and urges the United States Congress to adopt Carbon Fee & Dividend as a sound and effective policy. j
APPENDIX A
To the City of Chicago Resolution in Favor of National Carbon Fee & Dividend Legislation Findings:
Causation: there is a consensus among climate scientists1,2, domestic and international science bodies such as the National Academy of Sciences, the International Panel on Climate Change, the American Meteorological Society, The Geological Society of America, the American Chemical Society, the American Physical Society, and several other scientific bodies, that greenhouse gas emissions from human activities such as burning fossil fuels are driving the current rise in global temperatures and the associated climatic change3,
Mitigation: the weight of the scientific evidence indicates that business-as-usual will not lead to reductions in greenhouse gas emissions4,5, and scientists and economists have reached an agreement that an "upstream" tax or fee on carbon pollution is desirable to reduce emissions6"9,
Endanqermeht: further Increases in global temperatures pose substantial dangers to humarj .health10, the natural environment11, the economy12'15, national security , and an unacceptable risk of medium and long-term future harm17,
Climate change caused by global-warming-related greenhouse gas emissions including C02 Is already leading to large-scale problems including rising sea levels; more frequent, extreme, and damaging weather events such as heat waves, storms, heavy rainfall and flooding, and droughts; more frequent and intense wildfires; disrupted ecosystems affecting biodiversity, and food production; and an increase in heat-related deaths18; and
We are potentially approaching or are currently passing several climate tipping points, including, unstoppable ice melt leading to irreversible sea level rise19,20, methane release and runaway, warming from melting permafrost21 and ocean-hydrate emancipation22, rainforest dieback, etc.23; and
Local effects: of climat&chanqe: Overall, the effects of climate change on the Chicago area are expected to be negative24. The following effects of climate change are likely to occur in the absence of major action to reduce greenhouse gas emissions:
Mortality similar to the 1995 Chicago heat wave is expected to be the new norm for annual heat wave-related deaths in Chicago25,
Surface ozone levels in Chicago are expected to increase26,27, worsening air quality and exacerbating breathing problems like emphysema, bronchitis, and asthma, especially in children,
Greater variability in Chicago area water quality28,
An increased frequency of heavy .rainfall and flooding with the potential to damage buildings, roads, bridges, and rail systems24,
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Coastline erosion leading to property damage and loss24,
Species loss and increased susceptibility to invasive species like the gypsy moth and kudzu29,
Increased exposure to allergens like Ragweed30 which exacerbate costly medical conditions such as rhinitis and asthma, common in the Chicago area.
The present costs of fossil fuels.are externalized: presently the environmental, health, and social costs of C02 emissions are not included in prices of fossil fuels, but rather these externalized costs are borne directly and indirectly by all Americans and global citizens; and
Co-benefits: the measures proposed in this legislation will benefit the economy, human health, the environment, and national security, even before consideration of global temperatures, by correcting market distortionSi reducing non-greenhouse gas pollutants, reducing the outflow; of dollars to oil-producing countries, and Improving energy security for the United States31,
Benefits of Carbon Fees: phased-ih carbon fees on greenhouse gas emissions are (1) the most efficient, transparent, and enforceable mechanism to drive an effective and fair transition to a domestic energy economy, (2) will stimulate investment in alternative-energy technologies, and (3) will give all businesses powerful incentives, to increase their energy efficiency and reduce their carbon footprints in order to remain competitive31;
Equal: monthly per-person"dlvidehds- monthly dividends from carbon fees paid equally to every American household .will cushion the .poor and middle class against rising costs17,31"33^ stimulate the American economy31,34, and help ensure that families and individuals can afford greenhouse-gas-free energy,
Therefore the National Carbon Fee & Dividend Act contains the following elements:
Collection of Carbon Fees / Carbon Fee/Trust Fund: The Act would impose a carbon fee on all fossil fuels and other greenhouse gases at the point where they first enter the economy. The fee shall be collected by the Treasury Department. The fee on that date shall be $15/ton C02-equivalent emissions and result in equal charges for each ton of CCVequivalent emissions potential in each type of fuel or greenhouse gas. The Department of Energy shall propose and promulgate regulations setting forth C02-equivalent fees for other greenhouse gases including at a minimum methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons, (HFCs), perfluorocarbons, and nitrogen trifluoride. The Treasury shall also collect the fees imposed upon the other greenhouse gases. Net fees are to be placed in the Carbon Fees Trust Fund and can be rebated 100% to American households as outlined below.
Emissions Reductions-Targets: To align U.S. emissions with the physical constraints identified by the Intergovernmental Panel on Climate Change (IPCC) to avoid irreversible climate change, the yearly increase in carbon fees including other greenhouse gases shall be at least $10 per ton of C02-equivalent each year. Annually, the Department of Energy shall determine whether an increase larger than $10 per ton per year is needed to achieve program goals. Yearly price increases of at least $10 per
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ton per year shall continue until total U.S. C02-equivalent emissions have been reduced to 10% of U.S. C02-equivalents in 1990.
Equal Ber-Personi Monthly Dividend Payments: Equal monthly per-person dividend payments shall be made to all American households (1/2 payment per child under 18 years old, with a limit of 2 children per family) each month. The total value of all monthly dividend payments shall represent 100% of the total carbon fees collected each month.
Border Adjustment: In order to ensure that U.S.-made goods can remain competitive at home and abroad and to provide an additional incentive for international adoptions of carbon fees, Carbon-Fee-Equivalent Tariffs shall be charged for goods entering the U.S. from countries without a comparable Carbon Fees/Carbon Pricing. Carbon-Fee-Equivalent Rebates shall be used to reduce the price of exports to such countries and to ensure that U.S. goods can remain competitive in those countries. The Department of Commerce will determine rebate amounts and exemptions, if any.
Anderegg, W. R. L., Prall, J. W., Harold, J. & Schneider, S. H. Expert credibility in climate change. Proc. Natl. Acad. Scl. U.S.A. 107, 12107-12109 (2010).
Doran, P. T. & Zimmerman. M. K. Examining the Scientific Consensus on Climate Change. Eos, Transactions American Geophysical Union 90, 22-23
IPCC. Climate Change 2013. dlmatechange2013.org Available at: . (Accessed: 15 April 2014)
Covert, T., Greenstone, M. & Knittel. C. R. Will We Ever Stop Using Fossil Fuels? SSRN Journal (2016). doi:10.2139/ssrn.2720633
McJeon, H. etal. Limited impact on decadal-scale climate change from increased use of natural gas. Waft/re 614, 482-485 (2014).
Rosenberg, S., Vedlitz, A., Cowman, D. F. & Zahran, S. Climate change: a profile of US climate scientists' perspectives. Climatic Change (2010).
Howard, P. & Sylvan, D. The Economic Climate: Establishing Consensus on the Economics of Climate Change. (2015).
Haab, T. C. & Whitehead, J. C. What do Environmental and Resource Economists Think? Results from a Survey of AERE Members. (2015).
Fuller, D. & Geide-Stevenson, D. Consensus Among Economists—An Update. The Journal of Economic Education 45, 131-146 (2014).
McMichael, A. J., Woodruff, R. E. & Hales, S. Climate change and human health: present and future risks. The Lancet (2006).
Hughes, I. Biological consequences of global warming: is the signal already apparent? Trends in Ecology & Evolution 15, 56-61 (2000).
Nordhaus, W. D. & Boyer, J. Warming the world. (2000).
Weitzman, M. L. A review of the Stern Review on the economics of climate change. Journal of economic literature (2007).
Whiteman, G., Hope, C. & Wadhams, P. Climate science: Vast costs of Arctic change. Nature 499, 401-403 (2013).
Burke, M., Hsiang, S. M. & Miguel, E. Global non-linear effect of temperature on economic production. Nature 527, 235-239 (2015).
Work, R. O. Climate Change Adaptation and Resilience. Department of Defense (Department of Defense, 2016).
Hansen, J. et at. Assessing 'dangerous climate change': required reduction of carbon
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emissions to protect young people, future generations and nature. PLoS ONE 8, e81648 . (2013).
Change, I. P. O. C. Climate Change 2014-lmpacts, Adaptation and Vulnerability: Regional Aspects. (2014).
Rignot, E., Mouginot, J,,Morlighem, M., Seroussi, H. & Scheuchl, B. Widespread, rapid grounding line retreat of Pine Island, Thwaites, Smith, and Kohler glaciers, West Antarctica, from 1992 to 2011. Geophysical Research Letters 41, 3502-3509 (2014).
DeConto, R. M. & Pollard, D. Contribution of Antarctica to past and future sea-level rise. Nature 531, (2016).
Vaks, A. era/. Speleothems reveal 500,000-year history of Siberian permafrost. Science 340, 183-186 (2013).
Archer, D„ Buffett, B. & Brovkin, V. Ocean methane hydrates as a slow tipping point in the global carbon cycle. Proceedings of the National Academy of Sciences 106, 20596-20601 (2009).
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Wuebbles, D. J., Hayhoe, K. & Parzen, J. Introduction: Assessing the effects of climate change on Chicago and the Great Lakes. Journal of Great Lakes Research 36, 1-6 (2010).
Hayhoe, K., Sheridan, S., Kalkstein, L. & Greene, S. Climate change, heat waves, and mortality projections for Chicago. Journal of Great Lakes Research 36, 65-73 (2010).
Holloway, T. et al. Change in ozone air pollution over Chicago associated with global climate change. Journal of Geophysical Research: Atmospheres 113,
Lin, J.-T. et al. Potential effects of climate and emissions changes on surface ozone in the Chicago area. Journal of Great Lakes Research 36, 59-64 (2010).
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Hellmann, J. J. et al. Climate change impacts on terrestrial ecosystems in metropolitan Chicago and its surrounding, multi-state region. Journal of Great Lakes Research 36,
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|1010|Chicago City Council Co-Sponsor Form
R2017-915
Subject- u,s- National Carbon Fee & Dividend System
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Document No.: R2017-915
Subject: Call for the US to pass legislation creation national carbon fee and dividend
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