The law also creates a “Pollution Reduction Trust Fund” earmarking $7.5 billion annually over 10 years for energy-intensive and trade-exposed industries—including steel, iron and other sectors generating comparable greenhouse gas emissions.
Of the bill’s revenue, 60% would be refunded to households, offsetting increased energy costs. Other stipulations include strengthening the Environmental Protection Agency’s hydraulic fracturing regulation and a “Sense of Congress” provision stating the U.S. should cut greenhouse gases to 80% of 2005 levels by 2050.
The Obama White House has been cool to a carbon tax, while the House couldn’t agree on a cap-and-trade to greenhouse gas emissions when the measure previously reached the floor. Nonetheless, Boxer says she hopes to move the bill this summer.