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Coral Davenport and
WASHINGTON — Wisely by West Virginia Democratic Senator Joe Manchin III’s move to kill a key element of President Biden’s climate plan, some House and Senate Democrats are moving on to Plan B: the carbon dioxide pollution tax.
A carbon tax, in which polluting industries pay a fee for every tonne of carbon dioxide they emit, is seen by economists as the most effective way to reduce planet-warming fossil fuel emissions.
Almost definitive death of the clean electric program As scientists say strong policies are needed to avert the most devastating effects of climate change, the agenda at the center of Mr. Biden’s agenda has sparked anger among many Democrats and has led many to say now is the time for a carbon tax.
“A carbon pricing bill “For the past three years, I’ve been sitting at my desk just waiting for time,” said Oregon Democrat Senator Ron Wyden, chair of the Senate Finance Committee.
“What is striking is the number of senators who have come to me about this since early fall after Louisiana with storms, flooding on the East Coast, runaway fires here in my own state,” said Mr. Wyden. By phone from Oregon on Saturday. “There are several senators, key moderate senators, who now say they are open to it. And a lot of House members who said they’d support it if the Senate sent it.”
But a carbon tax could be politically explosive. Industries can pass on their high costs, and President Biden and other Democrats can be swayed by inflation and energy prices are rising. Environmental justice advocates say a carbon tax allows companies to continue to pollute, albeit at a higher cost, and it disproportionately harms low-income communities. And it’s unclear whether Mr Manchin will support a carbon tax, which is so important to Biden’s legislative agenda.
As a result, the White House is scrambling to find alternatives to replace the $150 billion clean electricity program that was at the center of Mr. Biden’s climate agenda until a few days ago, when Mr. This program would reward public organizations that stopped burning fossil fuels in favor of wind, solar, and nuclear power, and punish those that did not. It was aimed to force the country’s electricity sector to generate 80 percent of its power from clean energy sources by 2030, up from the current 40 percent.
While looking for alternatives, White House officials are also considering a voluntary version of a cap and trade program that would create a market for polluters to buy and sell allowances for a given amount of emissions. They’re also considering adding to the $300 billion in clean energy tax incentives and credits remaining on the bill as they look for ways to save parts of the clean electricity program.
A White House official said on Saturday that staff are still dealing with members of Congress and have not yet adopted a final version of the climate provisions.
The cut to the climate change program could be one of the first major decisions that will likely be painful for Democrats as they evaluate the ambitious $3.5 trillion domestic policy package. Mr Manchin and another Democrat, Senator Kyrsten Cinema Arizona said they couldn’t support that level of spending. Over the next two weeks, the White House will negotiate cuts to dozens of programs with Democrats as lawmakers work to reduce the original bill to nearly $2 trillion.
Mr Biden suggested Friday that one of the key items on his agenda – the two-year free community college – is also on the cutting block, and progressive lawmakers are concerned about plans to provide paid family leave and expand Medicare to include seeing, dentistry and hearing. benefits may survive.
Mr. Biden and Democratic leaders on Capitol Hill have set a deadline of October 31 for a deal that would allow Democrats to pass the bill with razor-sharp majorities in both houses of Congress.
Recently, as White House officials were trying to reach a deal, Mr. Manchin told them he would not support any legislation involving a clean electricity program. Mr. Manchin, a major coal producer in the state, have financial tiesThe coal industry said that abandoning fossil fuels would undermine the country’s energy independence and exacerbate climate change.
When his opposition to the clean electricity program was made public on Friday, some Democrats expressed their anger.
“We have a moral obligation and management mandate to pass policy on climate change,” the 96-member Congressional Progress Group said on Twitter. “Inaction is not an option.” For weeks progressive Democrats have been shouting, “No climate, no deal!” holding rallies shouting slogans. Pressure the White House to include strong climate provisions. Many of these rallies focused on the importance of the clean electricity program.
New York Democratic Representative Alexandria Ocasio-Cortez wrote on Twitter that Congress “cannot afford to digest” the climate provisions in the bill. “This issue is bigger than ideology. “Reducing and ultimately eliminating emissions is a moral imperative for the future of humanity and our planet.” “There are many ways to do this, but we cannot afford to give up.”
Oregon Democratic Senator Jeff Merkley attended the “No climate, no deal” rallies. “Listen, my condition is on fire. “We’re losing our snowpack, the ocean is getting acidic, it’s affecting our shellfish,” he said. “This is a code red.”
Mr Merkley said he would not vote for a compromise package without “substantial climate provisions” but is open to any option that cuts carbon dioxide emissions in half by 2030 and produces carbon-free electricity by 2035.
It proposed additional wind and solar subsidies or proposals to accelerate the transition to clean energy vehicles.
“The Biden team will have to plan how to achieve these two goals,” he said, “because that’s the way we stay on track.”
The clean electricity program that Mr. Manchin opposes was notable because it would include both incentives and penalties. Carrots paying electricity grids to switch to clean energy; It was a stick of punishment for companies that didn’t replace fossil fuels with clean energy. Analysts said a carbon tax could provide a similar incentive when paired with tax incentives.
“If you were to replace the clean electricity program with the carbon price, I think that would go a long way. It would bring back many bar elements that were removed,” says Zeke Hausfather, a climate scientist and policy analyst at the Breakthrough Institute, an energy and climate research organization.
Wyden’s staff, who drafted the carbon tax language, is considering a local carbon tax that could start at $15 to $18 per tonne and will increase over time, according to two people familiar with the matter and not authorized to speak. on record.
The tax will apply directly to coal mining companies, large natural gas processing plants, and oil refineries based on emissions associated with their products, with one exception: Oil refineries will likely be charged for producing diesel fuel and petrochemicals, but not gasoline—a way to protect most American drivers at the pump.
Mr Wyden said a key part of the policy would be to use the income for tax breaks or checks for poor and working-class Americans, especially those working in the fossil fuel industry. “When there is an economy in transition, you have to show workers and families that they will get their money back,” he said. “They will be made whole.”
Emily Cochrane, Zolan Kanno-Youngs and Jim Tankersley contributing reporting.
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