Section 1 Short title
This Act may be cited as the “State’s Choice Act of 2014”.
State’s Choice Act of 2014
A BILL
To give States the option of addressing emissions of greenhouse gases from existing stationary sources by pricing emissions.
Sec. 2 State option to impose a carbon tax
Applicability— This section applies with respect to any regulation to address climate change issued by the Administrator of the Environmental Protection Agency under section 111(d) of the Clean Air Act (42 U.S.C. 7411(d)) for emissions of any greenhouse gas from an existing stationary source.
State option—
Option— Subject to paragraph (2), a regulation described in subsection (a) shall allow a State the option to impose a carbon tax with respect to greenhouse gas emissions from an existing stationary source instead of, or in conjunction with, applying a standard of performance for such emissions from such existing stationary source.
Reevaluation— The Administrator of the Environmental Protection Agency shall—
in 2025, conduct an evaluation of any carbon tax imposed by a State pursuant to this subsection to determine whether such tax, together with any other relevant measures of the State, will, by the end of 2030, achieve the greenhouse gas reduction goals of the regulations described in subsection (a) which the tax is intended to replace (in whole or in part); and
if the Administrator determines that the tax, together with any other relevant measures of the State, will not achieve such goals, require the State to increase the tax by the amount determined necessary by the Administrator to achieve such goals.
Limitation— The option described in paragraph (1) shall not be available to a State if the Administrator determines that—
such State is materially undermining the effectiveness of the carbon tax in decreasing greenhouse gas emissions through other policy changes; or
the Administrator has required the State to increase its tax, as described in paragraph (2)(B), and the State has not complied with such requirement.
Definitions— In this Act:
Carbon dioxide equivalent— The term carbon dioxide equivalent means, for each greenhouse gas, the quantity of greenhouse gas that the Administrator of the Environmental Protection Agency determines makes the same contribution to global warming as 1 metric ton of carbon dioxide.
Carbon tax— The term carbon tax means an excise tax—
on emissions of any greenhouse gas; or
on a fossil fuel based on emissions of any greenhouse gas that will result from the use of such fossil fuel;
that in 2015, is not less than $20 per metric ton of carbon dioxide equivalent; and
that in each subsequent year, increases by not less than 4 percent above inflation, as measured by the Consumer Price Index for all urban consumers (all items; United States city average).
Existing stationary source— The term existing stationary source has the meaning given to the term existing source in section 111(a)(6) of the Clean Air Act (42 U.S.C. 7411(a)(6)).
Greenhouse gas— The term greenhouse gas means any of the following:
Carbon dioxide.
Methane.
Nitrous oxide.
Sulfur hexafluoride.
Hydrofluorocarbons.
Perfluorocarbons.
Stationary source— The term stationary source has the meaning given such term in section 111(a)(3) of the Clean Air Act (42 U.S.C. 7411(a)(3)).