Carbon pricing offers a cost-effective way to reduce greenhouse gas emissions. Fourteen states are already pricing carbon, and a number of states are considering similar action. This factsheet summarizes and compares nine federal carbon pricing proposals that have been introduced in the 117th Congress (2021–2022), highlighting similarities and differences. Six of these proposals would establish a carbon tax (or “carbon fee”), one of these proposals would establish a cap-and-dividend (i.e., cap-and-trade) program, and two of these proposals would establish a charge on methane emissions (i.e., methane fee). The nine proposals are:
The America’s Clean Future Fund Act (S. 685 and H.R. 2451) introduced by Sen. Dick Durbin (D-Ill.) on March 10, 2021 and by Rep. Marie Newman (D-Ill.) on April 12, 2021
The Energy Innovation and Carbon Dividend Act of 2021 (H.R. 2307) introduced by Rep. Ted Deutch (D-Fla.) on April 1, 2021
The Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act of 2021 (H.R. 3039) introduced by Reps. Brian Fitzpatrick (R-Pa.) and Salud Carbajal (D-Calif.) on May 7, 2021
The America Wins Act (H.R. 3311) introduced by Rep. John Larson (D-Conn.) on May 18, 2021
The Save Our Future Act (S. 2085) reintroduced by Sens. Sheldon Whitehouse (D-R.I.), Brian Schatz (D-Hawaii), Martin Heinrich (D-N.M.), Kirsten Gillibrand (D-N.Y.), Jack Reed (D-R.I.), Chris Murphy (D-Conn.), and Dianne Feinstein (D-Calif.) on June 16, 2021
The Methane Emissions Reduction Act of 2021 (S. 645 and H.R. 4084) introduced by Sen. Sheldon Whitehouse (D-R.I.) and Rep. Ted Deutch (D-Fla.) on June 23, 2021
The Carbon Reduction and Tax Credit Act (H.R. 8572) introduced by Rep. Sean Patrick Maloney (D-N.Y.) on July 28, 2022
Sec. 60113 of the Inflation Reduction Act of 2022 (P.L. 117-59), enacted on August 16, 2022
The Healthy Climate and Family Security Act of 2022 (S. 5338 and H.R. 9645) introduced by Sen. Chris Van Hollen (D-Md.) and Rep. Don Beyer (D-Va.) on December 21, 2022
