Enacts new Article 2E, Carbon Emissions Tax, in Subchapter I of GS Chapter 105, providing as follows. Specifies that the tax under this Article is to be collected only once on the same carbon-based fuel product. Defines carbon-based fuel product as coal, a petroleum product, natural gas, or electricity produced from such fuels. Requires every distributor (the vendor of a carbon-based fuel, at the first point of sale within the state) to pay a tax on any carbon-based fuel product sold, used, or entered into the state by the distributor for purposes of distribution or use within the state. Sets the tax rate for 2022 at $20 per metric ton of carbon dioxide equivalent that would be emitted through the combustion of a carbon-based fuel product; sets the rate for years after 2022 until the amount of tax reaches $50 per metric ton of carbon dioxide equivalent, as the amount in effect for the preceding calendar year plus $5 and adjusted by the same percentage as the percent inflation used by the US Bureau of Labor Statistics Consumer Price Index; thereafter, the adjustment of the amount is to include only the inflation percentage. Requires annual publication of a table of the carbon dioxide equivalent applicable to each carbon-based fuel product taxed under this Article, and the amount of the tax applicable in the next calendar year. Exempts from the tax: (1) carbon-based fuel products to the extent that the carbon dioxide equivalent emitted as a result of combustion is sequestered and not released into the atmosphere; (2) any activities which this Article may purport to tax in violation of the US Constitution or any federal statute. Sets out compliance reporting requirements. Requires the tax proceeds to be credited: (1) in an amount equal to 10% of the proceeds to the General Fund to be used for the special purpose of investments in and promotion of renewable energy sources within the state and (2) the remainder to be used to reduce the amount of utility bills paid by rate payers.
Bill S 674 (2021-2022)Summary date: Apr 8 2021 - View summary