Bill Overview
Title: Clean Competition Act
Description: This bill creates a carbon border adjustment mechanism to lower greenhouse gas emissions in high-polluting sectors. This mechanism imposes charges on imports from carbon-intensive (e.g., fossil fuels, refined petroleum products, petrochemicals) manufacturers, encourages decarbonization efforts, and funds future research, development, and deployment efforts to achieve a net-zero carbon future. The bill requires annual calculations of carbon intensity, imposes a carbon intensity charge on imports into the United States beginning after 2023, and allows for rebates for overpayments of charges. The bill also establishes a grant program in FY2025 and subsequent fiscal years for investments in new technology to reduce carbon intensity in existing facilities and ensure best-in-class carbon intensity for proposed facilities.
Sponsors: Sen. Whitehouse, Sheldon [D-RI]
Target Audience
Population: Individuals affected by global decarbonization and trade changes
Estimated Size: 200000000
- Carbon border adjustments affect global trade, particularly sectors reliant on carbon-intensive imports.
- High-emission industries worldwide will face increased costs when exporting to the U.S.
- Manufacturers in fossil fuels, refined petroleum, petrochemicals, and similar sectors will need to invest in cleaner technologies or face tariffs.
- The global push for decarbonization may drive changes in production methods and supply chain adjustments in these sectors.
- Consumers worldwide could see changes in prices for products reliant on these imports due to the passing through of increased importer costs.
Reasoning
- The policy will primarily impact individuals and sectors that rely heavily on carbon-intensive imports, such as fossil fuels and petrochemical products. These participants may face price changes or need to adapt their business strategies to remain competitive.
- Due to the U.S. focus, an impacted group includes American manufacturers in high-emission sectors, which might experience increased foreign competition if unable to adapt to decarbonization incentives quickly.
- Indirect effects may occur in consumer markets as prices for goods affected by imports change. This can include anything from gasoline to products made from petrochemicals.
- Long-term benefits and job creation might arise in fields related to clean technology and research, potentially increasing opportunities in those sectors.
- The policy's budget constraints mean not every impacted sector or individual can be fully supported, leading to selective shifts and adaptations guided by existing resources.
Simulated Interviews
Petrochemical Plant Manager (Texas)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- The Clean Competition Act could drastically affect our costs due to import charges.
- To stay competitive, we'll need to invest in new technology, which is costly upfront.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 4 |
Clean Energy Research Scientist (California)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- This act could provide significant resources and opportunities for expanding clean energy research.
- I'm optimistic about the potential job growth and innovation in clean technology sectors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 10 | 6 |
| Year 20 | 10 | 6 |
Retail Store Manager (New York)
Age: 30 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I'm concerned that increased import costs will be passed to consumers.
- We may need to adjust our supply chain or raise prices, impacting sales.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 3 |
Environmental Policy Student (Washington)
Age: 25 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 18/20
Statement of Opinion:
- The act is a good step toward environmental responsibility.
- I'm hopeful it creates more opportunities in the field of sustainable policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
Retired Steelworker (Pennsylvania)
Age: 65 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Increased import costs might affect the company's finances and my pension.
- I worry about the long-term viability of the industry and its workforce.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Automotive Industry Executive (Illinois)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 9/20
Statement of Opinion:
- This policy is a double-edged sword; it may increase costs but accelerate our electric vehicle plans.
- We'll need more support to offset implementation costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 9 | 3 |
Grocery Store Owner (Florida)
Age: 45 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- If import prices rise, our margins might shrink, leading to higher consumer costs.
- Customer satisfaction is dependent on maintaining low prices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 5 | 3 |
| Year 3 | 5 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 2 |
Automotive Supply Chain Analyst (Michigan)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- Supply chain shocks due to carbon tariffs could lead to major reassessments.
- Adapting quickly is essential to avoid costly delays and interruptions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 4 |
Stay-at-home Parent (Georgia)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- Increased prices in everyday goods due to import tariffs could strain our tight family budget.
- I'm hoping for more affordable green alternatives in the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 4 |
Small Business Owner - Green Technology (Oregon)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- The policy seems like it will boost demand for renewable solutions, aiding our business.
- I am optimistic about new opportunities created.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 10 | 6 |
| Year 20 | 10 | 6 |
Cost Estimates
Year 1: $800000000 (Low: $700000000, High: $1000000000)
Year 2: $850000000 (Low: $750000000, High: $1050000000)
Year 3: $900000000 (Low: $800000000, High: $1100000000)
Year 5: $1200000000 (Low: $1000000000, High: $1400000000)
Year 10: $1300000000 (Low: $1100000000, High: $1500000000)
Year 100: $1500000000 (Low: $1200000000, High: $1800000000)
Key Considerations
- Non-compliance and disputes related to carbon intensity calculations could require additional resources for enforcement.
- Global trade dynamics may shift as countries respond to U.S. implementing a carbon border adjustment mechanism.
- The availability of funding for technology grants will be a key determinant in the effectiveness of the grant program in encouraging decarbonization.