Steinberg introduces Carbon Tax proposal

By CMTA Staff

Capitol Update, Feb. 21, 2014 Share this on FacebookTweet thisEmail this to a friend

Rather than move forward with the California Air Resources Board plan to include transportation fuels under the AB 32 cap and trade program starting in 2015, Senator Pro Tem Steinberg has introduced legislation to instead impose a “carbon tax” on fuel sales in the state.  Key elements of the proposal include: 

1. Set aggressive targets in statute, beyond 2020, to break our fossil fuel addiction and reinforce the climate goals of AB32 through 2030 and 2050.

2. Continue Cap and Trade for polluting industrial plants but replace Cap and Trade’s current 2015 expansion into the transportation fuel economy with a broader, more stable and more flexible Carbon Tax of a similar amount on these same fuels

3. Return two-thirds of the Carbon Tax revenues to poor and middle-income Californians through a state Earned Income Tax Credit for families making less than $75,000 per year

4. Inject the remaining Carbon Tax revenues into a multi-billion dollar 21st Century development of California’s mass transit infrastructure to reduce traffic and pollution from cars using fossil fuels

You can see the text of Senator Steinberg's address here.

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