Dems want tax on polluters to pay for climate damages
WASHINGTON — Democrats in Congress want to tax Exxon, Chevron and a handful of other major oil and gas companies, saying the biggest climate polluters should pay for the floods, wildfires and other disasters that scientists have linked to the burning of fossil fuels.
The draft legislation from Sen. Chris Van Hollen, D-MD., directs the Department of the Treasury and the Environmental Protection Agency to identify the companies that released the most greenhouse gases into the atmosphere from 2000 to 2019 and assess a fee based on the amounts they emitted.
That could generate an estimated $500 billion over the next decade, according to Van Hollen. The money would pay for clean energy research and development as well as help communities face the flooding, fires and other disasters that scientists say are growing more destructive and frequent because of a warming planet.
The bill for the largest polluters could be as much as $6 billion annually spread over 10 years, according to a draft of the plan.
“It’s based on a simple but powerful idea that polluters should pay to help clean up the mess they caused, and that those who polluted the most should pay the most,” Van Hollen said. “Those who have profited the most should help now pay the damages that they’ve already caused.”
The proposal comes as the Senate works to pass a bipartisan $1 trillion infrastructure package that includes billions of dollars to help communities prepare for and recover from extreme weather driven by climate change. Democrats hope to later
pass a separate $3.5 trillion budget package that will include measures to cut carbon dioxide, methane and other greenhouse gases that result from burning fossil fuels and help drive up global temperatures.
Van Hollen says he is optimistic that his legislation will find broad support within his party and be attached to the budget reconciliation package, which Democrats hope to pass without Republican votes. But that would require all Democrats in the narrowly divided Senate to back the measure, including Sen. Joe Manchin of West Virginia, who has routinely argued against anti-fossil fuel legislation.
While several major oil companies, the Chamber of Commerce and the American Petroleum Institute — the country’s largest oil and gas trade group — support a tax on carbon emissions, fossil fuel advocates said targeting a handful of companies was unfair.
Thomas Pyle, president of the Institute for Energy Research, which supports the expanded use of fossil fuels, questioned the legality of Van Hollen’s tax plan. “It’s laughable,” he said. Pyle said he was stunned
by the idea of singling out individual companies to tax, adding “I can’t imagine any court of law that this would stand up in.”
Exxon Mobil and Chevron did not respond to requests for comment.
Frank Macchiarola, senior vice president of the American Petroleum Institute, said in a statement that the oil and gas trade group supports “a market-based, economywide carbon price policy” to tackle climate change.
An extensive scientific report issued in 2018 by 13 federal agencies concluded that human activities, especially the emissions of greenhouse gases produced by power plants, factories and automobiles that run on fossil fuels, are the dominant cause of the global temperature rise.
The report concluded that extreme weather events made worse by global warming would cause hundreds of billions of dollars a year in damage in the United States alone. In 2020, the nation saw a record 22 disasters that each caused damage of at least $1 billion, according to the National Oceanic and Atmospheric Administration.