SB 1463 Summary

• Replaces the environmental response, energy, and food security tax with a carbon emissions tax of $6.25 per ton of carbon dioxide equivalent emissions on all fossil fuels sold by distributors.

• Establishes specific tax rates per unit for different fuel types, ranging from $0.0360 per gallon for propane to $17.6892 per short ton for coke, designed to be revenue-neutral with existing fuel taxes.

• Repeals the state fuel tax while maintaining county fuel taxes unchanged; distributes carbon tax revenue to environmental response revolving fund ($1.29 million), energy security fund ($3.87 million), energy systems development fund ($2.58 million), and agricultural development fund ($3.87 million).

• Requires the Department of Business, Economic Development, and Tourism to annually recommend tax rate updates based on energy carbon emissions data and submit proposed legislation to the legislature.

• Takes effect July 1, 2050; repeal of the fuel tax credit for commercial fishers takes effect January 1, 2051 and applies to taxable years beginning after December 31, 2019.