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HomeMy WebLinkAboutStaff Report 4.I 6/17/2013 A 'Itevw#4.I k�u``\ 785$ DATE: June 17 2013 TO: Honorable Mayor and Members of the:City Council FROM: John C. Brown, City Manager SUBJECT: Discussion and Possible Action'on Letter Of for a National Revenue- Neutral Tax on Carbon Fuels RECOMMENDATION It is recommended that,the,City'Council provide direction as appropriate. BACKGROUND _ Mr. Bruce Hagen has written the City Council,requesting•Council support for pending legislation:intCongress, the Bozer,Sanders Climate:Protection Act(S.332). Mr. Hagen is requesting`a•signed letter by June'20, 2013. FINANCIAL IMPACT In response to a question raised by a.Councilmernber regarding how much the City has budgeted to pay for gasoline in the next fiscal year, the Finance Department`has_advised that $592,400 has been"budgeted to account code 53080,(fuel) and $125,000 has been budgeted to account code 53060 (supplies/parts/fuel), fora yearlytotal of$717,400. ATTACHMENTS. 1. Em ail requestiiigCouncil.action. '2. Draft letter, 3. Citizen Climate Lobby's,proposed'language Agenda Review: City Attorney Finance Director , City Manag , - i Crump,,Katie From: Mattioli, Allison Sent: Tuesday, June 04;2013 7:21 AM To: Crump, Katie Subject: FW: Request to Agendize Resolution Supporting Revenue-Neutral Tax on Carbon Attachments: Text of proposed letter, Petaluma City Council, June 3, 2013.docx; Fee And Dividend Legislative Proposal 081811.pdf • From: Bruce Hagen [mailto:brucekevofh@'gmail.com] Sent: Monday,June 03, 2013 10:37 pm To Dave Glass, councilman albertsontaornail.corn, Teresa,Barrett, Mike Harris;;Michael Healy; councilmernberkearneveme.coin, Kathleen Miller'' Cc -City Clerk Subject: Re: Request to Agendize Resolution Supporting Revenue-Neutral Taxon Carbon Monday, June 3, 2013 • Mayor Glass and Council: As promised at tonight's Council Meeting, I'm sending my proposed letter of support for the national revenue-neutral carbon tax legislation. It's attached. It's nearly the same letter T sent on May 28, with the addition of a paragraph calling attention to Petalurna's special interest in protecting our climate. Presently, there is no legislation pending in Congress that meets our criteria, although the Boxer-Sanders Climate Protection Act S.332 is close (it is not revenue neutral). I have also attached Citizen Climate Lobby's proposed language.. I am hoping to have the signed letter within the next two weeks, no later than Thursday, June 20. Please let me know what I can do to help make this happen. Thanks! Bruce • PS.. If°you want to know more about Citizens Climate Lobby, the NYTimes did a great piece in last Wednesday's edition,. at http://opinionator.blogs.nytimes.com/2013/o.5/2q/lobbying-for-the-greater- good/ On Tue, May 28, 2013 at 9:32 PM, Bruce Hagen <brucekevoth a gmail.coin> wrote: Mayor Glass and City Council Members: I'm writing to formalize my request, made at your May20 hearing on Sonoma Clean Power, that:the Council agendize and adopt a resolution supporting a federal revenue- neutral tax on carbon fuels ("carbon ReNT"). My full request is in the'attached PDF ("Bruce Hagen request:.,"), along with proposed language ("Carbon Tax Letter...). Thank you for your attention. Bruce • I 3 CITY OF PETALUMA POST-OFFICE Box'61 185g ,rPETALUMA,CA 94953-0061 David Glass Mayor Chris Albertson Teresa Barrett June 18, 2013 Mike Harris Mike Healy • Gabe-Kearne} Kathy Miller Councilmembers U.S. Senator Barbara Boxer U.S. Senator Dianne Feinstein 112 Hart Senate Office Building 331 Hart-Senate Office Building Washington, D.C. 20510 t Washington, D.C. 20510 RE: Letter Of-Support for a National'Revenue-Neutral Tax on Carbon Fuels Dear Members.of Congress: Nearly all the scientific experts agree on the basics of climate change. The Earth is warming. Humans are doing it;It's already harming us and other species. If we continue/burning fossil fuels at-recent rates, it poses°far more dangerous and significant risks'for our children and-grandchildren. We are approaching a dangerous City Managers Office threshold whereby,if it is crossed, the earth..will simply take the controls out of our li Fnghsh srreer hands, andtopical forests, peat.bogs, permafrost and the oceans will switch from Petaluma.-CA 94952 absorbing carbon to releasing it: Phone(707)778-4345 Far(707) 778-4419 • -,trash As members of the Petaluma City Council, we have an especially keen interest in cavmgrctpctalu,na CO US addressing=this!issue. Weather-dependent-agriculture is a key element of our local economy. Our downtown envelops the Petaluma River estuary, and is,thus vulnerable to the rising ocean level caused by global warming. Our last major flood, Economic Development a result of rain`runoff and tides,caused over $50 million-of property damage. PhF o j a-asa6 And the U.S.,Army Corps'"$40 million investment in flood control stands to be overwhelmed by higher tides. • Housing Division • Phone(707)778-4555 We still have time to act—if weustart now We;know what to do. We have affordable, Fax(707)778-4586 practical solutions that don't require great sacrifice. We can adopt a balanced approach.'Wercanrcut-energy demand with`efficiency innovations and some Haman Resources Division Phone(707)778-4534 additional conservation, and wescan scale up energy supplies with existing Fax(707) 778-4539 alternative technologies that don't bum carbon. htformation Technology Division. Our first':step:has to be a big one. We can avoid the worst.impacts of global.warming PhZ(707)1776:3623 707 778 4117 tf we put a federal, revenue neutral carbon tax on fossil fuels that reflects their true costs-to.-society. Risk Management Division Phone(707)776-3695 Fax(707) 776-3697 • • There is an emerging consensus,amongecononiists that the smartest approach:is.to:enact a consumer-friendly carbon tax in the following'way: • Goal. Reduce emissionsto 80 % below 2005_levels•by 2050. • Start small, increase predictably.'Increase the tax slowly but steadily until we hit our emissions goal. Businessesneed'predictable energy prices: The economy needs a smooth transition. • Easy to administer:at'home.,and to emulate abroad: The tax is collected only once—at the first point of sale—the:mine, wellhead or border crossing. • Revenue=neutral. All the-revenue is'returne`d to citizens to mitigate the economic impact. Government keeps none of the funds. • Protects the vulnerable. For lower-income Americans,•the refunds match or exceed increased energy costs: • Protects business from unfair domestic and'international competition using border taxes and credits. • Doesn't play favorites: Lets markets and localities pick the winning technologies. For the good of our nation,,and to preserve a livable World for future generations, we urge you to enact this revenue-neutral tax on carbon. Sincerely, David Glass Mayor Chris Albertson Teresa Barrett Mike Harris Vice Mayor Councilmember Councilmember Mike Healy Gabe Kearney Kathy Miller Councilmember Councilmember Councilmember cc: U:S..Representative Jared Huffman, 2nd District, 1630 Longworth House Office Building, Washington, D;C. 20515 U.S. Representative Mike Thompson, 5th District, 231 Cannon House Office Building, Washington,D:C.205IS Legislative,proposal: Carbon .Fee and Dividend Proposed Findings: 1.'Causation`. Whereasahe;weight ofscie itific,evidence indicates that greenhouse gas emissionslfrom burning fossil fuels and other sources are causing,rising global temperatures, 2. Mitigation (Return to 350,ppm„or,Below):Whereas the weightof"scientific evidence also indicates that'a return from'thecuffent concentration ofrnore:than 387 parts per million ("ppm")'bf'carben diozideT("CO2".) in the,atriosphere to350 ppm CO2 or less is necessary to slow or;stopthe rise in global temperatures; 3. Endangerment: Whereas further increases in global temperatures pose imminent and substantial dangers to human health, the natural environment, the economy and national security and an unacceptable risk of catastrophic impacts to human civilization, 4. Co-Benefits:"Whereas the measures proposed in this legislation will benefit the economy, human health,-:the,environment and national security, even without consideration of global temperatures, as a result of advances in clean-energy technology; reductions in non-greenhouse-gas pollutants, reducing the outflow of dollars to,oil,-`producing_ couhtries'and improvements,in the energy security of the United States, 5. Benefits of CarberiFees:`Whereas phased-in carbon fees'onfossil fuels (1) are the most efficient, transparent and enforceable mechanism to drive an effective and fair transition to a clean-energy economy, (2)will stimulate'Investment in;clean-energy technologies by insuring,that fossil fuels losetheir competitive price advantage over clean energy withima 10-year:time frame,and (3) give all businesses powerful incentives to increaseaheir energy-efficiency and reduce>theircarbon footprints in order to remain competitive, 6. Equal Monthly Per-Person Dividends: Whereas,equal monthly dividends (or "rebates")from carbon fees;paid to each American household'can help insure that families and individuals;aan,afforo`the•eiiergy they need'd'uring the.transitioh to a clean energy economy,and the dividends will stimulate.the economy, Therefore the following legislation is hereby enacted: 1. Collection of Carbon,Fees/Carbon Fee Trust Fund: Upon'enactment, impose a carbon fee-on all fossil fuels at the pointwherethey first enter the economy. The fee shall be collectedly the Internal Revenue Service: The fee on that date shall be.$15 per_ton of CO2 equivalentemissions and result in equal charges for each ton:of.0O2 equivalent emissions potential;in each type of fuel. The Department Of Energy shall proposeand promulgate'regulations setting forth CO2 equivalent fees for other greenhouse gases including methane, nitrous okide,.sulfur liexafluoride, hydrofluotodarbons.(HFCs) emitted as a byproduct, perfluorocarbons, and nitrogen trifluoride. The Revenue Service shall also collect the fees''imposed upon the othengreenhouse.gesses,.,Alffees:are to be placed in the Carbon Fees Trust Fund and be rebated 100% to.American households as outlined.below. 2. Ensuring that Clean Energy.BecomesCompetitive Within a Ten year Time Frame:The.yearly increase in carbon fees including other greenhouse gasses, shall be at least $10 per ton of'CO2.equivalent each year'to':ensure.that fossil fuel energy loses its competitive:price;advantage with respect to the clean energy technologies we have"today, including, at a minimum, wind,;geothermal and industrial solar energy, within 10 years ofthe:date of enactment..Annuallythe 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 year shall continue until total U.S'. CO2-equivalent emissions' been reduced to 10% of U.S. CO2- equivalent emissions°in 1990'.. 3. Equal Per-Person Monthly^Dividend Payments: Equahmonthly per-person dividend payments shall be made to all American Households (1/2 per child under 18 years l 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 per month. 4. Border Adjustments: In order to ensurethatU.S.-made goods can remain competitive at home and`abroadand toprovide 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 comparable Carbon Fees/Carbon Pricing. Carbon-Fee-Equivalent Rebates shall be used to'reduce the price of exports to:`such countries and toensurethat'U.S.:goods can remain • competitive in those countries:;The DepartmentofCommerce will determine rebate amounts and exemptions if any. 5. P hase Out of Fossil Fuel Subsidies: All existing,subsidies_of fossil fuels, including tax credits, shall be phasedoufover the"5 years:following enactment. 6..Moratorium on New or Expanded Coal-Fired Power Plants: Beginning on the date of enactment, there shalhbe'no new coal'-fired powerplants permitted, constructed, or operated. Thereshall also bano'.expansions'in cepacity.of anyexisting coal power plants permitted, constructed, or operated. And.any previously permitted coal-fired power plants that'have not yet been constructed or put'into operation prior to the date of enactment shall not be put into operation and shall not be further constructed. 7. Seeking Treaties: The President in consultation with the.United States Department of State shall seek.treaties with other countries that encourage adoption of programs similar to the ones provided'for in this Act to reduce CO2 and other greenhouse gas , emissions in other countries: Legislation introduced in'the 1,11m.Congress by Rep. Larson (D,-CT), H.R. 1337 America's Energy.Security�TrustFund,ACt,:and by Rep. Inglis'(R-SC), H.R. 2380 Raise Wages Cut Carbon Act, reflects an approach Very to this.