Carbon Assessment and Dividend Act (SF 4207) Summary

• Imposes a revenue-neutral environmental emissions assessment on carbon-based fuels (coal, natural gas, liquid fuels, municipal waste) starting January 1, 2021, at $50 per ton of CO2 emitted, increasing $5 annually until reaching $200 per ton maximum

• Creates a carbon assessment dividend account that collects all assessment revenues and distributes them to individuals as annual tax credits/dividends, employers as FICA tax rebates, farmers as property tax credits, and businesses as refunds for energy efficiency improvements

• Establishes a $50 million revolving loan fund (fiscal year 2022 only) managed by the Commissioner of Commerce to provide low-interest loans to businesses implementing energy efficiency or renewable energy projects

• Exempts renewable fuels (ethanol, plant-based biofuels, hydroelectricity) and allows credits for assessments paid in other states to prevent double taxation

• Requires annual reporting beginning 2023 on assessment collections, dividends/rebates paid, refunds awarded, emissions reductions, and recommendations for sectoral exemptions and policy adjustments