Van Hollen Introduces the Cap and Dividend Act of 2009
Legislation Returns 100% of Auction Proceeds to Consumers through Monthly Dividends
Apr 1, 2009 -
Today, Congressman Chris Van Hollen (D-MD) introduced the Cap and Dividend Act of 2009. This legislation sets robust targets for emissions reductions, auctions 100 percent of carbon permits, and returns all auction proceeds to consumers in the form of a monthly dividend.
“The science of climate change can be complicated, but the legislative solution doesn’t have to be,” said Van Hollen. “The strength of cap and dividend lies in its simplicity and durability. All permits are sold at auction, and all proceeds are given back to the American people. As the price of energy rises, the monthly dividends will keep American consumers whole.”
“At its core, any successful climate change bill cannot just reduce carbon emissions. It must attract and retain the long-term, popular support of the American people,” Van Hollen added. “I believe the cap and dividend approach offers the best chance to get the job done.”
Congressman Van Hollen, Co-Chair of the Renewable Energy and Energy Efficiency Caucus, is a leading supporter of congressional efforts to address global climate change.
The Cap and Dividend Act of 2009 will:
- Set robust, scientifically driven emissions reductions targets at 25 percent below 2005 levels by 2020 and 85 percent below 2005 levels by 2050 for covered emissions.
- Place an upstream compliance obligation on the first seller of fossil fuels into the U.S. market.
- Auction 100 percent of carbon permits.
- Include Border Adjustment provisions to protect U.S. manufacturers of carbon-intensive goods from imports of carbon-intensive goods originating in countries without comparable climate legislation and assistance for U.S. exporters of carbon-intensive goods to compete effectively in the international marketplace with carbon-intensive goods originating in countries without comparable climate legislation.
- Return 100% of auction proceeds in the form of a monthly Consumer Dividend to every lawful resident of the United States with a valid Social Security number.
Original co-sponsors of the Cap and Dividend Act of 2009 include Congressman Mike Thompson (D-CA), Congressman Earl Blumenauer (D-OR) and Congressman Lloyd Doggett (D-TX).
To read the bill, please click here