Bill Summary: Raised Bill No. 1064

• Establishes a carbon fee on all fossil fuels (coal, oil, natural gas, propane, and petroleum products) sold in Connecticut starting January 1, 2021, at $15 per ton of carbon dioxide equivalent, increasing by at least $5 per ton annually unless the Carbon Pollution Council determines otherwise.

• Fee applies at the first point of sale and is collected by the Commissioner of Revenue Services; electricity suppliers and natural gas distributors pay the fee on behalf of end users based on fuel mix and usage calculations.

• Creates a "clean energy and jobs account" funded by collected fees, with 45% distributed as dividends to employers, 50% to residents (equal amounts per resident, with additional amounts for each dependent under age 18), and up to 5% for administrative costs.

• Reduces the state fee by any federal carbon price paid on the same fuels; provides exemptions for carbon-sequestered fuels and public transportation entities; establishes the Carbon Pollution Council with 39 members to determine fee amounts aligned with Global Warming Solutions Act targets.

• Bill takes effect only after Massachusetts and Rhode Island enact fossil fuel fees of at least $10 per ton and the Carbon Pollution Council determines the appropriate fee amount.