A major focus of this legislation is a price on carbon and methane emissions. This fee on the largest fossil-fuel polluters affects fewer than 3,000 entities nationwide but covers 85% of the greenhouse gas emissions in the US, according to the Congressional Research Service. The legislation ends fossil fuel subsidies. It also protects communities by requiring that drillers engaged in a new technology called fracking must comply with the Safe Drinking Water Act and disclose chemicals they use.
To help consumers, 60% of the carbon fee revenue will be rebated to every US resident. To level the playing field for US manufacturers and create incentives for international cooperation, there would be a border fee on imported fuels and products unless the nation they were shipped from had a similar carbon price.
To transform our energy system, the legislation would make the boldest ever investment in energy efficiency and sustainable energy. That includes weatherizing 1m homes a year, as President Obama has advocated. It also means tripling the budget for advanced research and investing hundreds of billions through incentives and a public-private Sustainable Technologies Fund focusing on energy efficiency and clean transportation technology, as well as solar, wind, geothermal and biomass alternatives.