A climate bill the people can support

“They say a carbon tax is too politically sensitive. … I disagree with this assessment. I believe the American people want climate policy to be transparent, honest and effective.”

Though I couldn’t have said it better myself, most folks would be surprised to learn the source of this quote. It comes not from the director of Sierra Club or Greenpeace, but from the CEO of ExxonMobil, Rex Tillerson.

And while the policies and practices of ExxonMobil, in my view, leave much to be desired, Tillerson’s comments cut through the posturing and politics that envelop efforts to enact legislation that will reduce greenhouse gases and produce new jobs in the green-energy economy.

Too bad his words haven’t been taken to heart on Capitol Hill.

In a last-ditch effort to revive climate legislation from the ashes of cap and trade, three senators have come up with a proposal that divides carbon emitters into three sectors — utilities, transportation and manufacturing.

In this approach — offered by Sens. John Kerry (D-Mass.), Lindsey Graham (R-S.C.) and Joe Lieberman (I-Conn.) — utilities would come under a carbon cap with a yet-to-be-determined system for allocating permits. Fuels for transportation would be taxed directly. Carbon limits for manufacturers would be phased in at a later date, with details to be negotiated.

I admire the hard work and commitment these senators have invested to come up with a solution on climate and energy, but if we’re looking for something that is “transparent, honest and effective,” this isn’t it.

In crafting a compromise they feel could attract the necessary votes, Kerry, Graham and Lieberman have devised a plan that appeals to the divergent sectors of corporate America.

I have a better idea: How about a proposal that appeals to the American people?

Does $6,000 annually for a family of four sound appealing?

That’s how much money would eventually be returned to households under an approach known as carbon fee and dividend.

Here’s how it works:

Place a steadily-increasing fee on coal, oil and gas at the source — the mine, the well, the port of entry. As the fee rises, investors and industries can calculate the point at which renewable energy will be competitive with — if not cheaper than — fossil fuels. This triggers an explosion in the development and production of clean power from wind, solar and other sources. Hundreds of thousands of new jobs will emerge as America enters into the clean energy economy. A simple fee on fossil fuels gives us a transparent, honest and — most importantly — predictable price on carbon-based energy. With such a price signal in place, I’m betting that big corporations like ExxonMobil — with hundreds of billions of dollars in profits at their disposal — will jump headlong into the emerging clean-energy market.

But wait. Won’t energy costs go up? Who pays for that?

That’s where the dividend comes in. As revenue is generated from the carbon fee — we’re talking a lot of revenue — it’s given back to all households equally in the form of a monthly payment. The vast majority of Americans would receive more from the carbon dividend than they would pay for increased energy costs.

How much money are we talking about? When the fee reaches $115 per ton of CO2, it’s estimated that the dividend share would be about $2,000 a year. If you give children a half share — up to two children per household — a family of four would get $6,000 a year. The better they are at reducing their energy use, the more money stays in their pocket, money that can be spent on other goods and services that stimulates our economy.

Perhaps the best economic benefit of the carbon fee and dividend is that it will reduce the carbon dioxide in the atmosphere that is causing catastrophic climate change. The savings from averting this disastrous rendezvous with Mother Nature is incalculable.

There are some who have doubts as to what the scientists tell us about the warming of our planet and its causes. The way I see it, though, we have nothing to lose and everything to gain by shifting to clean energy. And the fastest way to do that is to put a price on carbon and give the money back to the people.

Marshall Saunders of Coronado, Calif., is founder and president of Citizens Climate Lobby. For information about the organization’s Whidbey Island chapter, contact Jim Hyde at whidbeycll@gmail.com or 360-321-4747.