Federal Carbon Tax Gets Another Look

The U.S. House’s $3.5 trillion spending plan contains a proposed Clean Electricity Performance Program (CEPP), which would pay utilities that increase their share of clean energy while penalizing those that don’t. But the CEPP faces strong opposition from Republicans and U.S. Sen. Joe Manchin (D-W. Va.). In its place, a carbon tax has been floated, Politico reported this week.

The AP notes that a “middle ground” proposal could include “tax credits for energy producers that reduce emissions, and pollution fees to be paid by industries for every ton of carbon dioxide they emit.” Other media sources say the carbon tax faces “massive political headwinds.” 10/20/2021