CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

August 6, 2018
CONSENT AGENDA

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Agnes Topp, Environmental Compliance Manager

APPROVED BY: Chip Rerig, City Administrator

RESOLUTION NO. 2018- 077, SUPPORTING THE NATIONAL CARBON FEE

AND DIVIDEND PROGRAM AND AUTHORIZING THE MAYOR TO SEND
SUBJECT: LETTERS OF SUPPORT FOR THE PROGRAM TO CONGRESSMAN PANETTA
AND THE MONTEREY COUNTY BOARD OF SUPERVISORS

RECOMMENDATION:
Approve Resolution No. 2018- 077 supporting the National Carbon Fee and Dividend Program and authorizing the
Mayor to send letters of support for the Program to Congressman Panetta and the Monterey County Board of
Supervisors.

BACKGROUND/SUMMARY:
According to the Intergovernmental Panel on Climate Change, current atmospheric concentrations of carbon dioxide,
methane and nitrous oxide are at unprecedented levels in at least the last 800,000 years. These concentrations are
associated with unequivocal warming of the climate system, with many adverse changes intensifying over the past
decades. Continued emission of greenhouse gases will cause further warming and long-lasting changes in our
climate, increasing the likelihood of severe and irreversible impacts for people and ecosystems. Thus, urgent action is
needed across the United States to shift energy production and consumption away from fossil fuels to more
environmentally sensitive solutions.

Citizen's Climate Lobby, a non-profit, nonpartisan, advocacy organization, is requesting support from
communities nationwide to foster passage of congressional legislation to establish a National Carbon Fee and
Dividend Program. The objective is to accelerate the transition to clean energy sources to help curb the impacts
of greenhouse gas emissions on our climate.

The National Carbon Fee and Dividend Program proposal includes the following elements:
- A federal carbon fee on greenhouse gas generators at the source and on imports from countries
without carbon pricing
- Dividends from the carbon fee distributed to US households to offset the increased cost of goods
and energy.

This proposal would accelerate the transition away from fossil fuels by making cleaner energy options less
costly than fossil fuels. A study by Regional Economic Models, Inc. indicates that the program would also
benefit the economy and create 2 million jobs over 10 years.

The State of California and neighboring cities of Pacific Grove, Monterey, and Marina have adopted resolutions
in support of the Carbon Fee and Dividend Program.
FISCAL IMPACT:
There is no fiscal impact to the City associated with the above recommendation.
PRIOR CITY COUNCIL ACTION:
None directly associated with this program. However, over the years, the Carmel City Council has adopted numerous
programs and goals to reduce degradation of the natural environment.

ATTACHMENTS:

Attachment #1 - Resolution No. 2018-077

Attachment #2 – Letters of Support from Mayor Dallas to Congressman Panetta and the Monterey County
Board of Supervisors
 Attachment 1

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL

RESOLUTION NO. 2018-077

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA SUPPORTING THE

NATIONAL CARBON FEE AND DIVIDEND PROGRAM AND AUTHORIZING THE MAYOR TO SEND
LETTERS OF SUPPORT TO CONGRESSMAN PANETTA AND THE MONTEREY COUNTY BOARD OF
SUPERVISORS

WHEREAS, according to the Intergovernmental Panel on Climate Change, current atmospheric

concentrations of carbon dioxide, methane and nitrous oxide are at unprecedented levels in at least the
last 800,000 years, and these concentrations are associated with unequivocal warming of the climate
system with many adverse changes intensifying over the past decades;

WHEREAS, continued emission of greenhouse gases will cause further warming and long-lasting
changes in our climate, increasing the likelihood of severe and irreversible impacts for people and
ecosystems;

WHEREAS, urgent action is needed across the United States to shift energy production and
consumption away from fossil fuels to more environmentally sensitive solutions;

WHEREAS, the Carbon Fee and Dividend Program’s legislative principles proposed by the Citizen’s
Climate Lobby, a non-profit, nonpartisan, advocacy organization, would help support the rapid
deployment of cleaner energy alternatives by establishing a fee on greenhouse gas emissions, thus
making cleaner energy options less costly than fossil fuels;

WHEREAS, the Carbon Fee and Dividend Program would provide households with a dividend from the
greenhouse gas emissions fee that would offset increased costs for energy; and

WHEREAS, according to a study by Regional Economic Models, Inc., the Carbon Fee and Dividend
Program would also be beneficial to the economy and create 2 million jobs over 10 years,

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-
THE-SEA DOES HEREBY:

Support the establishment of the National Carbon Fee and Dividend Program and authorize the Mayor
to send letters of support to Congressman Panetta and the Monterey County Board of Supervisors.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this
6th day of August 2018, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
 Attachment 1

SIGNED: ATTEST:

Steve G. Dallas, Mayor Thomas A. Graves, MMC

City Clerk
 Attachment 2

August 8, 2018

Congressman Panetta
Salinas Office
100 W Alisal St
Salinas, CA 93901

RE: Support for Carbon Fee and Dividend Program

Dear Congressman Panetta:

On August 6, 2018, the Council of the City of Carmel-by-the-Sea passed a resolution in support of the Carbon Fee
and Dividend Program (Program) proposed by the non-partisan Citizens’ Climate Lobby. As the Mayor of the City of
Carmel-by-the-Sea, I am writing to urge your support for this proposal.
As a coastal city surrounded by significant ecological resources, including coastal waters designated as an Area of
Special Biological Significance, we are very concerned about the impacts of climate change on the health and safety
of our residents, as well as that of our surrounding ecosystems. Among the many impacts of climate change, we are
anticipating increases in air and ocean temperatures, stronger storms, increasing threats of wildfires, beach erosion,
and ocean acidification. A rapid shift to green energy alternatives is needed to curb our reliance on fossil fuels and
reduce the severity of the impacts of climate change.
A national Carbon Fee and Dividend Program would be an efficient approach to make this rapid shift occur by
establishing a fee on greenhouse gas emissions that would make cleaner energy options less costly than fossil fuels.
The Program would also provide households with a dividend offsetting the increased cost of energy, thus minimizing
impacts on low- and middle-income households.
The City believes that a national Carbon Fee and Dividend Program is vital to the rapid shift needed to curb our
reliance on fossil fuels and reduce our collective impact on the climate. Attached is the City’s resolution requesting
that the United States Congress pass legislation to establish this critical Program.

Sincerely,

Steve Dallas
Mayor
City of Carmel-by-the-Sea

Attachment: Resolution 2018-_____

 Attachment 2

August 8, 2018

Monterey County Board of Supervisors

PO Box 1728
Salinas CA 93902

RE: Support for Carbon Fee and Dividend Program

Dear Members of the Monterey County Board of Supervisors:

On August 7, 2018, the Council of the City of Carmel-by-the-Sea passed a resolution in support of the Carbon Fee
and Dividend Program (Program) proposed by the non-partisan Citizens’ Climate Lobby. As the Mayor of the City of
Carmel-by-the-Sea, I am writing to urge your support for this proposal.
As a coastal city surrounded by significant ecological resources, including coastal waters designated as an Area of
Special Biological Significance, we are very concerned about the impacts of climate change on the health and safety
of our residents, as well as that of our surrounding ecosystems. Among the many impacts of climate change, we are
anticipating increases in air and ocean temperatures, stronger storms, increasing threats of wildfires, beach erosion,
and ocean acidification. A rapid shift to green energy alternatives is needed to curb our reliance on fossil fuels and
reduce the severity of the impacts of climate change.
A national Carbon Fee and Dividend Program would be an efficient approach to make this rapid shift occur by
establishing a fee on greenhouse gas emissions that would make cleaner energy options less costly than fossil fuels.
The Program would also provide households with a dividend offsetting the increased cost of energy, thus minimizing
impacts on low- and middle-income households.
The City believes that a national Carbon Fee and Dividend Program is vital to the rapid shift needed to curb our
reliance on fossil fuels and reduce our collective impact on the climate. Attached is the City’s resolution requesting
that the United States Congress pass legislation to establish this critical Program.

Sincerely,

Steve Dallas
Mayor
City of Carmel-by-the-Sea

Attachment: Resolution 2018-_____