Agenda Item 17
Public HearingIWorksession 2
Management and Fiscal Policy/
Transportation, Infrastructure, Energy & Environment Committees
Michael Faden, Senior Legislative Attorney
Public HearingIWorksession 2:
Expedited Bill 29-10, Taxes - Excise Tax
Carbon Dioxide Emissions
Expedited Bi1l29-1O, Taxes - Excise Tax - Carbon Dioxide Emissions, sponsored
by Councilmembers Berliner, Leventhal, and EIrich, was introduced on April 27, 2010. An
initial Management and Fiscal Policy/ Transportation, Infrastructure, Energy & Environment
Committee worksession was held on April 29, at which Committee members discussed the Bill
and related questions but took no action. A second joint Committee worksession is tentatively
scheduled for May 18 after the public hearing. If the joint committee has completed its review,
the Council could act on Bill 29-10, along with the other pending revenue measures, on May 19.
Summary of Bill 29-10.
The major provisions in Bill 29-10 include:
1) Tax levied.
Bill 29-10 would require a major emitter of carbon dioxide to pay an excise
tax of $5 per ton of carbon dioxide (see ©2, lines 17-19; 23-24). A "major emitter of
carbon dioxide" would be defined as a person who owns or operates a stationary source
of carbon dioxide that emits more than 1 million tons of carbon dioxide in a calendar year
(see ©2, lines 20-22). Bill 29-10 would allow the Council to increase or decrease the rate
by resolution (see ©2, lines 25-27). The tax would be payable monthly, unless the
Director establishes an alternate payment system (see ©3, lines 40-45). Councilmember
Berliner estimated that this tax could generate between $10 and $15 million/year in new
revenue (see ©6).
2) Interest and penalties.
If a person does not pay the tax due, the person would be liable
interest on the unpaid tax per month for each month or part month after the tax is
• 5% of the amount of tax per month or part of a month after the tax is due, not to
exceed 25% of the tax (see ©3, lines 47-54).