Carbon Pollution Transparency Act

II 116TH CONGRESS 1ST SESSION S. 1745 To establish a cost of greenhouse gases for carbon dioxide, methane, and nitrous oxide to be used by Federal agencies, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 5, 2019 Mr. BENNET (for himself, Mr. WHITEHOUSE, Mr. VAN HOLLEN, Ms. HARRIS, Mr. CARDIN, Mrs. FEINSTEIN, Mr. MERKLEY, Mr. WYDEN, Ms. SMITH, Mr. CARPER, Mrs. GILLIBRAND, Ms. HIRONO, Ms. KLOBUCHAR, Mr. SCHATZ, Mr. MARKEY, Mr. HEINRICH, and Ms. CORTEZ MASTO) intro- duced the following bill; which was read twice and referred to the Com- mittee on Environment and Public Works A BILL To establish a cost of greenhouse gases for carbon dioxide, methane, and nitrous oxide to be used by Federal agen- cies, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Carbon Pollution 4 Transparency Act’’. 5 SEC. 2. FINDINGS. 6 Congress finds that— 7 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 2 •S 1745 IS (1) sound economic and policy analyses require 1 that the economic benefits of reducing climate 2 change be considered together with the costs of poli- 3 cies and measures to reduce greenhouse gas emis- 4 sions; 5 (2) climate change, if not addressed, is pro- 6 jected to inflict substantial damage on the economy 7 and people of the United States; 8 (3) according to the Congressional Budget Of- 9 fice, the Government Accountability Office, and the 10 Office of Management and Budget, the impacts of 11 climate change are— 12 (A) costing United States taxpayers bil- 13 lions of dollars annually; and 14 (B) putting pressure on the Federal budg- 15 et; 16 (4) the expenditures by the Federal Govern- 17 ment resulting from the effects of climate change 18 are projected to increase, and reducing greenhouse 19 gas emissions presents an opportunity to minimize 20 those expenditures; 21 (5) between calendar years 2008 and 2015, the 22 United States reduced carbon pollution from the en- 23 ergy sector by nearly 10 percent, while the economy 24 grew more than 10 percent; 25 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 3 •S 1745 IS (6) more than 1,200 companies are taking the 1 cost of climate change into consideration in business 2 decisions; 3 (7) estimates of the costs of greenhouse gases 4 provide a method and measure, grounded in sci- 5 entific and economic research, for monetizing— 6 (A) the costs of greenhouse gas emissions; 7 and 8 (B) the benefits of reducing greenhouse 9 gas emissions; 10 (8) the National Academies of Sciences, Engi- 11 neering, and Medicine has provided detailed rec- 12 ommendations for improving the estimate of the 13 costs of greenhouse gases for the purpose of regu- 14 latory analysis; 15 (9) the reduction of greenhouse gas emissions 16 by other countries benefits the United States by re- 17 ducing climate risks to the United States, and the 18 reduction of greenhouse gas emissions by the United 19 States benefits other countries; 20 (10) in light of the global nature of the problem 21 of greenhouse gas emissions, the interests of the 22 United States would be maximized if the United 23 States were to use a calculation method of the cost 24 of climate pollution that reflects global damages; 25 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 4 •S 1745 IS (11) due to the nature of climate change risks, 1 the returns on mitigation may pay off in periods 2 that would otherwise involve substantial losses; 3 (12) economic theory and evidence suggests 4 that, for actions with intergenerational consequences 5 such as the consequences of climate change, a dis- 6 count rate approximately equal to or less than the 7 long-term yield on the debt of the Treasury of the 8 United States may be appropriate; and 9 (13) it is imperative that the academic commu- 10 nity continue research on the cost of greenhouse 11 gases. 12 SEC. 3. DEFINITIONS. 13 In this Act: 14 (1) CALCULATION METHOD.—The term ‘‘cal- 15 culation method’’ means the method by which the 16 costs of greenhouse gases are calculated in accord- 17 ance with subsections (a), (b), and (c) of section 4, 18 respectively. 19 (2) COMMITTEE.—The term ‘‘Committee’’ 20 means the Costs of Greenhouse Gases Scientific Re- 21 view Committee established under section 7(a). 22 (3) COSTS OF GREENHOUSE GASES.— 23 (A) IN GENERAL.—The term ‘‘costs of 24 greenhouse gases’’ means the monetized present 25 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 5 •S 1745 IS discounted values, in dollars, of the current and 1 future net costs to society that result from— 2 (i) 1 ton of emissions of a specific 3 greenhouse gas in a specific year, includ- 4 ing, but not limited to, damage relating 5 to— 6 (I) a change in net agricultural 7 productivity; 8 (II) energy use; 9 (III) human health; 10 (IV) property damage from in- 11 creased flood risk and sea level rise; 12 and 13 (V) to the maximum extent prac- 14 ticable, the value of the effect on eco- 15 system services due to climate change; 16 and 17 (ii) the monetized present discounted 18 values of the current and future net bene- 19 fits to society from a 1-ton reduction of 20 emissions of a specific greenhouse gas in a 21 specific year, including a reduction in any 22 damage described in clause (i). 23 (B) INCLUSIONS.—The term ‘‘costs of 24 greenhouse gases’’ includes— 25 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 6 •S 1745 IS (i) the cost of carbon dioxide; 1 (ii) the cost of methane; 2 (iii) the cost of nitrous oxide; and 3 (iv) the cost of any other greenhouse 4 gas estimated by the Working Group. 5 (4) WORKING GROUP.—The term ‘‘Working 6 Group’’ means the Interagency Working Group on 7 the Costs of Greenhouse Gases established under 8 section 5(a). 9 SEC. 4. COST OF CARBON DIOXIDE, COST OF METHANE, 10 AND COST OF NITROUS OXIDE. 11 (a) COST OF CARBON DIOXIDE.—In developing any 12 rulemaking that requires a regulatory impact analysis, 13 making any substantial procurement decision for which 14 the cost of carbon dioxide is not applied before the date 15 on which a revised version of the costs of greenhouse gases 16 is finalized, the head of any Federal agency shall consider 17 and document the cost of carbon dioxide in accordance 18 with the amounts specified in the following table: 19 Cost of Carbon Dioxide, 2010 Through 2050 (in 2007 Dollars per Metric Ton of Carbon Dioxide), Dis- count Rate and Statistic Year 5 Percent Average 3 Percent Average 2.5 Per- cent Av- erage High Im- pact (95th Percentile at 3 Per- cent Dis- count Rate) 2010 $10 $31 $50 $86 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 7 •S 1745 IS Cost of Carbon Dioxide, 2010 Through 2050 (in 2007 Dollars per Metric Ton of Carbon Dioxide), Dis- count Rate and Statistic—Continued Year 5 Percent Average 3 Percent Average 2.5 Per- cent Av- erage High Im- pact (95th Percentile at 3 Per- cent Dis- count Rate) 2011 $11 $32 $51 $90 2012 $11 $33 $53 $93 2013 $11 $34 $54 $97 2014 $11 $35 $55 $101 2015 $11 $36 $56 $105 2016 $11 $38 $57 $108 2017 $11 $39 $59 $112 2018 $12 $40 $60 $116 2019 $12 $41 $61 $120 2020 $12 $42 $62 $123 2021 $12 $42 $63 $126 2022 $13 $43 $64 $129 2023 $13 $44 $65 $132 2024 $13 $45 $66 $135 2025 $14 $46 $68 $138 2026 $14 $47 $69 $141 2027 $15 $48 $70 $143 2028 $15 $49 $71 $146 2029 $15 $49 $72 $149 2030 $16 $50 $73 $152 2031 $16 $51 $74 $155 2032 $17 $52 $75 $158 2033 $17 $53 $76 $161 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 8 •S 1745 IS Cost of Carbon Dioxide, 2010 Through 2050 (in 2007 Dollars per Metric Ton of Carbon Dioxide), Dis- count Rate and Statistic—Continued Year 5 Percent Average 3 Percent Average 2.5 Per- cent Av- erage High Im- pact (95th Percentile at 3 Per- cent Dis- count Rate) 2034 $18 $54 $77 $164 2035 $18 $55 $78 $168 2036 $19 $56 $79 $171 2037 $19 $57 $81 $174 2038 $20 $58 $82 $177 2039 $20 $59 $83 $180 2040 $21 $60 $84 $183 2041 $21 $61 $85 $186 2042 $22 $61 $86 $189 2043 $22 $62 $87 $192 2044 $23 $63 $88 $194 2045 $23 $64 $89 $197 2046 $24 $65 $90 $200 2047 $24 $66 $92 $203 2048 $25 $67 $93 $206 2049 $25 $68 $94 $209 2050 $26 $69 $95 $212 (b) COST OF METHANE.—In developing any rule- 1 making that requires a regulatory impact analysis, making 2 any substantial procurement decision for which the cost 3 of methane is not applied before the date on which a re- 4 vised version of the costs of greenhouse gases is finalized, 5 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 9 •S 1745 IS the head of any Federal agency shall consider and docu- 1 ment the cost of methane in accordance with the amounts 2 specified in the following table: 3 Cost of Methane, 2010 Through 2050 (in 2007 Dollars per Metric Ton of Methane), Discount Rate and Statistic Year 5 Percent Average 3 Percent Average 2.5 Per- cent Av- erage High Im- pact (95th Percentile at 3 Per- cent Dis- count Rate) 2010 $370 $870 $1,200 $2,400 2011 $380 $910 $1,200 $2,500 2012 $400 $940 $1,300 $2,600 2013 $420 $970 $1,300 $2,700 2014 $440 $1,000 $1,300 $2,700 2015 $450 $1,000 $1,400 $2,800 2016 $470 $1,100 $1,400 $2,900 2017 $490 $1,100 $1,500 $3,000 2018 $510 $1,100 $1,500 $3,000 2019 $520 $1,200 $1,500 $3,100 2020 $540 $1,200 $1,600 $3,200 2021 $560 $1,200 $1,600 $3,300 2022 $590 $1,300 $1,700 $3,400 2023 $610 $1,300 $1,700 $3,500 2024 $630 $1,400 $1,800 $3,600 2025 $650 $1,400 $1,800 $3,700 2026 $670 $1,400 $1,900 $3,800 2027 $700 $1,500 $1,900 $3,900 2028 $720 $1,500 $2,000 $4,000 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 10 •S 1745 IS Cost of Methane, 2010 Through 2050 (in 2007 Dollars per Metric Ton of Methane), Discount Rate and Statistic—Continued Year 5 Percent Average 3 Percent Average 2.5 Per- cent Av- erage High Im- pact (95th Percentile at 3 Per- cent Dis- count Rate) 2029 $740 $1,600 $2,000 $4,100 2030 $760 $1,600 $2,000 $4,200 2031 $790 $1,600 $2,100 $4,300 2032 $820 $1,700 $2,100 $4,500 2033 $850 $1,700 $2,200 $4,600 2034 $880 $1,800 $2,200 $4,700 2035 $900 $1,800 $2,300 $4,900 2036 $930 $1,900 $2,400 $5,000 2037 $960 $1,900 $2,400 $5,100 2038 $990 $2,000 $2,500 $5,200 2039 $1,000 $2,000 $2,500 $5,400 2040 $1,000 $2,000 $2,600 $5,500 2041 $1,100 $2,100 $2,600 $5,600 2042 $1,100 $2,100 $2,700 $5,700 2043 $1,100 $2,200 $2,700 $5,800 2044 $1,200 $2,200 $2,800 $5,900 2045 $1,200 $2,300 $2,800 $6,100 2046 $1,200 $2,300 $2,900 $6,200 2047 $1,300 $2,400 $2,900 $6,300 2048 $1,300 $2,400 $3,000 $6,400 2049 $1,300 $2,500 $3,000 $6,500 2050 $1,300 $2,500 $3,100 $6,700 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 11 •S 1745 IS (c) COST OF NITROUS OXIDE.—In developing any 1 rulemaking that requires a regulatory impact analysis, 2 making any substantial procurement decision for which 3 the cost of nitrous oxide is not applied before the date 4 on which a revised version of the costs of greenhouse gases 5 is finalized, the head of any Federal agency shall consider 6 and document the cost of nitrous oxide in accordance with 7 the amounts specified in the following table: 8 Cost of Nitrous Oxide, 2010 Through 2050 (in 2007 Dollars per Metric Ton of Nitrous Oxide), Discount Rate and Statistic Year 5 Percent Average 3 Percent Average 2.5 Per- cent Av- erage High Im- pact (95th Percentile at 3 Per- cent Dis- count Rate) 2010 $3,400 $12,000 $18,000 $31,000 2011 $3,500 $12,000 $18,000 $32,000 2012 $3,700 $12,000 $19,000 $33,000 2013 $3,800 $13,000 $19,000 $34,000 2014 $3,900 $13,000 $20,000 $34,000 2015 $4,000 $13,000 $20,000 $35,000 2016 $4,200 $14,000 $20,000 $36,000 2017 $4,300 $14,000 $21,000 $37,000 2018 $4,400 $14,000 $21,000 $38,000 2019 $4,600 $15,000 $22,000 $38,000 2020 $4,700 $15,000 $22,000 $39,000 2021 $4,900 $15,000 $23,000 $40,000 2022 $5,000 $16,000 $23,000 $41,000 2023 $5,200 $16,000 $23,000 $42,000 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 12 •S 1745 IS Cost of Nitrous Oxide, 2010 Through 2050 (in 2007 Dollars per Metric Ton of Nitrous Oxide), Discount Rate and Statistic—Continued Year 5 Percent Average 3 Percent Average 2.5 Per- cent Av- erage High Im- pact (95th Percentile at 3 Per- cent Dis- count Rate) 2024 $5,400 $16,000 $24,000 $43,000 2025 $5,500 $17,000 $24,000 $44,000 2026 $5,700 $17,000 $25,000 $45,000 2027 $5,900 $17,000 $25,000 $46,000 2028 $6,000 $18,000 $26,000 $47,000 2029 $6,200 $18,000 $26,000 $48,000 2030 $6,300 $19,000 $27,000 $49,000 2031 $6,500 $19,000 $27,000 $50,000 2032 $6,800 $19,000 $28,000 $51,000 2033 $7,000 $20,000 $28,000 $52,000 2034 $7,200 $20,000 $29,000 $54,000 2035 $7,400 $21,000 $29,000 $55,000 2036 $7,600 $21,000 $30,000 $56,000 2037 $7,800 $21,000 $30,000 $57,000 2038 $8,000 $22,000 $31,000 $58,000 2039 $8,200 $22,000 $31,000 $59,000 2040 $8,400 $23,000 $32,000 $60,000 2041 $8,600 $23,000 $32,000 $61,000 2042 $8,800 $23,000 $33,000 $62,000 2043 $9,100 $24,000 $33,000 $64,000 2044 $9,300 $24,000 $34,000 $65,000 2045 $9,500 $25,000 $34,000 $66,000 2046 $9,800 $25,000 $35,000 $67,000 VerDate Sep 11 2014 22:52 Jun 13, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1745.IS S1745 tkelley on DSKBCP9HB2PROD with BILLS 13 •S 1745 IS Co [Text truncated for display. 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