Delaney Asks EPA to Give States Additional Flexibility in Fighting Carbon Pollution

WASHINGTON – Congressman John K. Delaney (MD-6) has submitted a formal comment to the Environmental Protection Agency (EPA) regarding the agency’s proposed rule to reduce carbon pollution from existing power plants. Writing to EPA Administrator Gina McCarthy, Delaney asked that the agency give “strong consideration to allowing states the additional compliance option of placing a price on greenhouse gas emissions.”

In May, Delaney released a discussion draft of The State’s Choice Act, which requires the EPA to offer states the option of imposing a state-level excise tax on greenhouse gas emissions as a way of complying with section 111 (d) of the Clean Air Act. The state-imposed carbon tax must be no less than $20 per metric ton of carbon dioxide or carbon dioxide equivalent.

Delaney will file The State’s Choice Act later this week.

The text of Delaney’s letter is as follows:

Gina McCarthy
Administrator
Environmental Protection Agency
EPA Docket Center (EPA/DC)
Mailcode 28221T
Attention Docket ID No. OAR–2013-0602
1200 Pennsylvania Avenue, NW., Washington, DC 20460

Dear Administrator McCarthy:

As you take public comments on your June 2, 2014 proposed rule for regulation of greenhouse gas emissions from existing power plants, I encourage you to give strong consideration to allowing states the additional compliance option of placing a price on greenhouse gas emissions.

It is clear that climate change is the environmental challenge of our time, and businesses are already making plans incorporating its effects and an eventual price on emissions.  I support the actions that the EPA has taken with this proposed rule.  We have to reduce our emissions, and I applaud the flexibility that the proposed rule gives to states.  I believe, however, that we can achieve the same emissions reductions more effectively and efficiently by applying a simple price on emissions.  Allowing states this additional option will let them use this market-based approach to reduce administrative burden. 

Americans on both sides of the aisle are looking for ways to protect the environment without overly burdensome regulations.  This option accomplishes the goal without bloating bureaucracy or creating more red tape for businesses. By appropriately pricing carbon pollution, we can marshal the power of the market to achieve important environmental and public health goals more effectively and efficiently.

In addition, the revenues that the state collects via a carbon tax can be used to lower other taxes in a tax-swap that will provide a net-benefit to economic growth. While there remains disagreement on what should be done to address climate change, there should be complete agreement that it’s better to tax pollution than to tax individuals and businesses making money.  Giving states this simple option will put the right incentives in place to reduce pollution and at the same time help businesses keep more of their money to hire more people and help individuals have more take-home pay. 

As you know, I have legislation titled the “State’s Choice Act” that would give states this option for this rule and for any future 111(d) regulations designed to reduce greenhouse gas emissions.

I look forward to seeing this additional compliance option offered in the final rule and welcome any discussion.

Best,

John K. Delaney

Member of Congress

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