Clean Electricity Performance Program vs. Carbon Fee

Criteria CEPPCarbon Fee
% of emissions covered25% (only power generation)Up to 100%
Incentivizes energy conservation?No-designed to keep utility rates unchangedYes
Incentivizes innovation across entire economy?NoYes
Incentivizes currently unknown technology?NoYes
Reduces emissions efficiently?NoYes
Picks low-hanging fruit first?NoYes
CO2 emission reductionModerateHigh
Reduces health damage from fossil fuels?SomeMore
Net cost to average householdZero (contingent on undecided funding)Depends on amount of revenue rebated to households
Protects fossil fuel jobs?Not if it succeeds in reducing emissionsNo
Will WTO permit border carbon adjustment to protect US industrial jobs and push carbon price around the world?NoYes
Percentage of revenues rebated to householdsNo revenues to rebateUp to 100%
Effect on budget deficitSignificantly increases (especially including tax credits for renewable manufacturing)Reduces a lot (0 rebate) to none (100% rebate)
Job creation: inventors, engineers, factory workers, construction workers, and entrepreneursModerateHigh
Administrative complexityHighExtremely low
Vulnerable to gaming, political influence, and fraud?YesNo
Treats each emitter differently?YesNo
Subject to legal challenges?YesNo
Subject to attack by executive branch?YesNo
Job creation: lobbyists, lawyers, consultants, and accountantsHighClose to zero
Bill written?No5 carbon fee bills in this Congress
Length of billNot writtenHouse bill for fee with rebate is 37 pages
Cosponsors Bill not writtenAs many as 81 in House
Must expire in 10 years to satisfy reconciliation?YesNo