A bipartisan bill in the House would tax carbon emissions, send 70% of the revenue to the Highway Trust Fund and eliminate the federal gas tax. According to text obtained by CQ Roll Call, the bill would levy a $35 per-metric-ton tax on fossil fuels--specifically coal, oil and gas--a charge that would begin in 2023 and increase by 5% every year, indexed to inflation.
Reps. Brian Fitzpatrick, R-Pa., and Salud Carbajal, D-Calif., introduced the bill in the previous Congress. The bill's reintroduction Friday comes as some conservative-leaning industry groups have warmed to the prospect of pricing carbon emissions while elected GOP politicians continue to drift away from the concept.
The measure calls for the remaining 30% be spread across other projects. The bill would also extend tax credits under Treasury's so-called 45Q program for carbon-capture technology, a method of trapping emissions before they enter the atmosphere, from 2026 to 2028.