H.R.1135 - Polluters Pay Climate Fund Act of 2025 (119th Congress)
Summary
H.R. 1135, the "Polluters Pay Climate Fund Act of 2025," aims to address climate change by imposing a tax on fossil fuel emissions and establishing a fund for climate resilience and adaptation. The bill targets entities engaged in extracting or refining fossil fuels, requiring them to pay a tax based on their carbon dioxide emissions from the period of 2000-2023. The revenue generated would be allocated to the "Polluters Pay Climate Fund" for investments in climate resilience, disaster response, and environmental justice initiatives.
The fund prioritizes support for vulnerable communities and allocates a significant portion of its resources to environmental justice communities. The bill also seeks to ensure that existing legal remedies for climate-related damages remain available, without being preempted by the Act.
Ultimately, this bill intends to shift the financial burden of climate change mitigation and adaptation onto the fossil fuel industry, while supporting communities most affected by climate change.
Expected Effects
The bill would likely increase the cost of fossil fuels due to the imposed tax, potentially leading to higher energy prices for consumers. It would also create a dedicated funding stream for climate resilience and adaptation projects, particularly benefiting environmental justice communities. The fossil fuel industry may face increased financial pressure, potentially impacting their operations and investments.
Potential Benefits
- Dedicated funding for climate resilience and adaptation projects.
- Prioritization of investments in environmental justice communities.
- Support for climate-related disaster recovery and mitigation.
- Increased climate resilience of infrastructure and ecosystems.
- Potential for reduced greenhouse gas emissions due to the tax on fossil fuels.
Potential Disadvantages
- Potential for increased energy costs for consumers.
- Negative impact on the fossil fuel industry and related jobs.
- Complexity in determining and allocating the tax burden.
- Risk of unintended consequences due to the tax, such as shifting production to other countries.
- Potential for the fund to be used for political purposes rather than effective climate action.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's constitutional alignment is complex. Congress has the power to tax and spend for the general welfare (Article I, Section 8). However, the targeting of specific industries for taxation could raise concerns about equal protection under the Fifth Amendment. The bill also aims to not preempt state or federal laws, which aligns with principles of federalism. The establishment of the fund and its allocation could be seen as promoting the general welfare, as stated in the Preamble of the Constitution.
However, the specific mechanisms for determining the tax and allocating funds could be subject to legal challenges based on due process and equal protection grounds. The bill's impact on interstate commerce (Article I, Section 8, Clause 3) would need to be carefully considered to avoid undue burdens on businesses.
Overall, while the bill aligns with some constitutional principles, its specific provisions and potential impacts require careful scrutiny to ensure compliance with constitutional limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).