The Clean Air Act, Pigouvian Pricing, and Climate Governance
Two carbon pricing bills were introduced during the 115th Congress. Reps. Carlos Curbelo (R-Fla.) and Brian Fitzpatrick (R-Pa.) introduced the MARKET CHOICE Act during the summer of 2018. Reps. Ted Deutsch (D-Fla.) and Francis Rooney (R-Fla.) introduced the Energy Innovation and Carbon Dividend Act (Energy Innovation Act) in November 2018, and reintroduced it early in the 116th Congress, where it presently has more than 65 cosponsors. By different methods and with different comprehensiveness, both of these bills place a Pigouvian tax on greenhouse gas (GHG) emissions. Among other things, they are notable for attracting Republican cosponsors and amending the Clean Air Act (CAA) to temporarily suspend certain of the U.S. Environmental Protection Agency’s authority over GHGs. This Comment analyzes the legal implications of the CAA amendments found in the Energy Innovation Act, and conducts a comparative evaluation of a selection of CAA programs vis-à-vis Pigouvian pricing.