America's Clean Future Fund Act
Summary
The "America's Clean Future Fund Act" aims to reduce greenhouse gas emissions through a carbon fee and investments in clean energy and climate resilience. It establishes the Climate Change Finance Corporation (C2FC) to finance clean energy projects, prioritizing communities disproportionately affected by climate change and pollution. The bill also includes provisions for carbon fee rebates to individuals and transition assistance for impacted communities.
Expected Effects
The act would impose a carbon fee on covered entities, increasing the cost of fossil fuels. This is designed to incentivize a shift towards cleaner energy sources. The C2FC would distribute funds through grants and loan guarantees, supporting various climate mitigation and resilience projects.
Potential Benefits
- Reduced greenhouse gas emissions, contributing to climate change mitigation.
- Investments in clean energy technologies and infrastructure, fostering innovation.
- Prioritization of funding for disadvantaged communities, promoting environmental justice.
- Creation of jobs in the clean energy sector.
- Direct financial assistance to individuals through carbon fee rebates.
Potential Disadvantages
- Increased energy costs for consumers and businesses due to the carbon fee.
- Potential economic disruption in carbon-intensive industries.
- Complexity in administering the carbon fee and related programs.
- Risk of unintended consequences or market distortions.
- Potential for the carbon fee to disproportionately affect lower-income individuals despite the rebate program.
Constitutional Alignment
The bill's alignment with the Constitution is primarily based on the General Welfare Clause (Article I, Section 8), which allows Congress to enact laws that "promote the general Welfare" of the United States. The Commerce Clause (Article I, Section 8) could also be invoked to justify federal regulation of activities that affect interstate commerce, including greenhouse gas emissions. However, the carbon fee could be challenged under the Takings Clause of the Fifth Amendment if it is argued that it deprives entities of property without just compensation. The Tenth Amendment reserves powers not delegated to the federal government to the states, which could be raised if the federal carbon fee is seen as infringing on state authority to regulate energy production.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).