First introduced by a bipartisan group of lawmakers led by Democrat Ted Deutch of Florida in November 2018 during the 115th Congress, the Energy Innovation and Carbon Dividend Act (EICDA) was reintroduced in the 116th Congress on January 24th, 2019. The EICDA aims to curb carbon emissions by imposing a fee on the carbon content of crude oil, natural gas, coal, and products derived from those fuels, at the point of production or import. Proceeds would be allocated first to administrative expenses, and then distributed in the form of a "dividend" to American taxpayers, resulting in what backers call a "revenue-neutral" program.
The fee would initially be set at $15 per "carbon fee unit" in 2019, and increase by $10 a year each year after that. Exemptions would be made under the bill for agricultural and certain military uses, and exporters would be able to take advantage of a border adjustment provision to enable them to compete on equal footing abroad.
The bill would suspend regulations issued under the Clean Air Act limiting greenhouse gas emissions, although regulations of conventional pollutants that incidentally limit greenhouse gases would be unaffected. This suspension would expire in ten years if the bill's emissions targets are not reached by that time.
Supporters of the bill estimate that it will reduce greenhouse gas emissions by 33-40% in 10-12 years, exceeding obligations under the Paris Climate Accord and emissions reductions that would have been achieved under the Obama Administration's Clean Power Plan.