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14.A.
         
City Council Meeting - FINAL
Meeting Date: 09/05/2017  
From: Nicole Woodman, Sustainability Manager/Interim Public Works Section Dir.

Information
TITLE:
Consideration and Adoption of Resolution No. 2017-31:  A resolution of the Flagstaff City Council urging the United States Congress to pass carbon fee and dividend legislation.
STAFF RECOMMENDED ACTION:
1) Read Resolution No. 2017-31 by title only
2) City Clerk reads Resolution No. 2017-31 by title only (if approved above)
3) Adopt Resolution No.2017-31
Executive Summary:
Staff is not taking a position on this item. The Flagstaff chapter of Citizens’ Climate Lobby is requesting that the Flagstaff City Council pass Resolution 2017-31. This Resolution urges the United States Congress to pass legislation that will establish a revenue-neutral fee on carbon emissions. Proceeds from the proposed fee would then be returned to American households as a dividend.
Financial Impact:
Regional Economic Modeling, Inc. (REMI), an independent consulting firm, performed an economic analysis of the proposed legislation. The table below shows their projected dividend per Flagstaff household, assuming a 2-adult, 2-child household. Population estimates from the most recent US Census were utilized to calculate the monthly and annual totals for Flagstaff as a whole.
 


Year
Flagstaff average household monthly dividend Flagstaff average household annual dividend
Flagstaff city monthly totals


Flagstaff city annual totals
1 $  34.22 $   410.63 $   787,237.71 $  9,446,852.55
2 $  67.02 $   804.25 $1,541,880.52 $18,502,566.30
3 $  96.97 $1,163.59 $2,230,802.10 $26,769,625.16
4 $124.05 $1,488.66 $2,854,002.43 $34,248,029.14
5 $149.72 $1,796.63 $3,444,430.71 $41,333,168.55
6 $169.68 $2,036.22 $3,903,770.81 $46,845,249.71
7 $185.37 $2,224.44 $4,264,617.62 $51,175,411.43
8 $199.63 $2,395.56 $4,592,692.38 $55,112,308.57
9 $212.47 $2,549.59 $4,887,995.10 $58,655,941.16
10 $222.45 $2,669.34 $5,117,576.57 $61,410,918.86
11 $233.85 $2,806.19 $5,379,930.09 $64,559,161.13
12 $242.40 $2,908.84 $5,576,739.52 $66,920,874.27
 
 
Policy Impact:
PROPOSED FEDERAL LEGISLATION:
Citizens’ Climate Lobby requests that the United States Congress enact legislation which will levy an annually increasing fee on carbon dioxide emissions produced by fossil fuels at the point of production and importation (mine, well, or port), and return all of the revenue from this fee to Americans on an equitable basis. The legislation would also incorporate suitable carbon-content-based fees/rebates for imports and exports to nations that have not taken a similar action.
 
RATIONALE BEHIND LEGISLATIVE ACTION:
The City of Flagstaff’s mission is to protect and enhance the quality of life for its citizens. The voter approved Flagstaff Regional Plan 2030 asserts that environmental health is inherent to individual and community health and prudent, fact-based stewardship of the economy and the environment is a critical responsibility in order to ensure that the resources of the City and its natural environment are available for future generations.
 
There have been marked increases in extreme weather events impacting northern Arizona including drought, wildfires, wind, and flooding, which are expected to further worsen. If left unaddressed, the consequences of a changing climate, including severe weather events, have the potential to adversely impact all Flagstaff residents, threatening productivity in key economic sectors such as construction, ranching, and tourism, saddling future generations with costly economic and environmental burdens, and imposing additional costs on City and County budgets that will further add to fiscal challenges. The urgently needed transition from fossil fuels can be accomplished effectively with a market-based program, namely a revenue-neutral carbon fee and dividend.  The Citizens’ Climate Lobby believes it is the responsibility and duty of the City Council to advocate for state and national policies that will protect all Flagstaff residents from events that could negatively impact their health, welfare, and safety.
 
Other cities in our region that have passed resolutions calling on Congress to enact carbon fee-and-dividend include Salt Lake City, Santa Fe, Las Cruces, and Carbondale.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
COUNCIL GOALS:
Take meaningful climate action

REGIONAL PLAN:
Policy E&C.2.1. Encourage the reduction of all energy consumption, especially fossil-fuel generated energy, in public, commercial, industrial, and residential sectors.
Policy E&C.2.2. Promote investments that strengthen climate resiliency.
Policy E.1.10. Incentivize energy efficiency and renewable energy technologies in construction projects.
Policy E.2.1. Promote renewable energy sources that reduce demand upon fossil fuels and other forms of generation that produce waste.
Policy E.2.5. Pursue, promote, and support utility-scale renewable energy production such as biomass facilities, solar electricity, wind power, waste-to-energy, and other alternative energy technologies.
Has There Been Previous Council Decision on This:
 The resolution was brought forward to City Council on January 16, 2016 for consideration. It did not pass. A second citizens petition was filed this year; on May 16, 2017, the petition came forward as a F.A.I.R. item and consensus of Council was to move it forward to a future agenda.
Attachments
Res. 2017-31
Carbon Fee and Dividend Presentation

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