Skip to Content
Streetsblog USA home
Log In
Cars

Could a New Kind of Fuel Tax Help Break the Senate Climate Deadlock?

12:00 PM EST on March 1, 2010

Even before the Senate environment panel pushed through a GOP protest to approve its climate change bill, Sens. Lindsey Graham (R-SC), Joe Lieberman (I-CT), and John Kerry (D-MA) were working behind the scenes on a so-called "tripartisan" plan that can win enough votes in Congress' upper chamber to make nationwide emissions cuts a reality.

Kerry_Lieberman_Graham_Hold_Press_Conference_XOA0hQd5O1Kl.jpg(from left) Sens. Lindsey Graham (R-SC), Joe Lieberman (I-CT), and John Kerry (D-MA) (Photo: Getty Images)

Over the weekend, the first hints of the trio's potential strategy were revealed to The Washington Post -- and new pricing for transportation fuel could play a major role (emphasis mine):

According to several sources familiar with the process, the lawmakersare looking at cutting the nation's greenhouse gas output by targeting,in separate ways, three major sources of emissions: electric utilities,transportation and industry.

Power plants would face an overall cap on emissions that wouldbecome more stringent over time; motor fuel may be subject to a carbontax whose proceeds could help electrify the U.S. transportation sector;and industrial facilities would be exempted from a cap on emissions forseveral years before it is phased in.

The concept of an across-the-board tax on fossil fuels used for transport is not new. Exxon CEO Rex Tillerson backed it in October, aligning his company with the stance of some environmental groups and causing debate over his motivations.

But Tillerson's endorsement proposed rebating a carbon tax back to consumers rather than letting it "becom[e] a revenue stream for other purposes," making it far from clear whether the three senators could win support for giving more new money to electrified transportation. (By way of context, electric cars received more funding in the first six months of the Obama administration than the Federal Transit Administration's annual budget.)

Physicist Joseph Romm, who blogs on every twist of the climate debate for the Center for American Progress, described the Post story as a "trial balloon" for the senators' plan and warned that the end of the cap-and-trade concept would hardly silence critics who are working to re-brand emissions caps as a closet "gas tax":

My sources say that what they’re proposing isn’t actually a carbontax on gasoline, nor is it the original cap-and-trade proposal, butsomething in between.  Since the notion is complex and confusing — andno final decisions have been made — I won’t try to explain it fullyhere. ...

While some oil companies may support this approach, my guess/fear isExxonMobil/API will simply attack the new bill as a gasoline tax —indeed, that may be their plan.

As Romm points out, the devil is in the details: How would a new fuel tax be structured? Given how many lawmakers acknowledge (if reluctantly) that the existing gas tax is the most practice way to pay for a comprehensive new federal transportation bill, imposing a new motor fuel fee could hurt the three senators' chances with their infrastructure-minded colleagues.

Putting aside the possible merits or drawbacks of Kerry, Lieberman, and Graham's approach, the Post story reveals a political climate that may be ever-so-slightly shifting in favor of passage of a climate bill this year. Senate Majority Leader Harry Reid (D-NV) reportedly told Kerry last week to intensify work on the "tripartisan" deal in hopes of bringing legislation to a vote before the November midterm elections.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Car Noise Pollution is Worse in Redlined Neighborhoods — And Not Just for Humans

Transportation noise pollution can wreak havoc on wildlife populations, too — and that can have a devastating effect on their human neighbors.

December 6, 2023

Oakland Calif. Mayor Makes New Promise About Safety

Mayor Thao Tweets "It's time to reach a critical juncture where tragedies don’t catalyze improvements." But when and how will we know if the city has really reached that point and is serious about safety for all road users?

December 5, 2023

Wednesday’s Headlines Envy Europe

Could the EU keep U.S. megacars off their streets?

December 5, 2023

Tuesday’s Headlines Are Getting Warmer

EVs and renewables are not going to be enough to stave off a climate catastrophe, scientists are warning officials at an international conference.

December 5, 2023
See all posts