New Carbon Tax Under Consideration Establishes Price for Fossil Fuels Sold in State
The cost of heating oil, electricity, propane and natural gas to homeowners and businesses across the state is set to increase sharply under a new bill raised by the Connecticut General Assembly's Environment Committee. The new bill establishes a fee of $15 per ton of carbon dioxide emissions when burning fossil fuels (gasoline, diesel, heating oil, natural gas, propane, etc.) beginning January 1, 2019. The bill also calls for annual increases of at least $5 per ton of emissions each subsequent year.
A carbon tax on fossil fuels would impact virtually every person and business in the state. The question is “how much more will it impact Connecticut consumers?” Using “cents-per-gallon” based on U.S. tons, the increase for 2019 is estimated to be:
The legislation does not indicate if the $15 per ton fee is in U.S. tons or metric tons, so these numbers are subject to change. However, this example provides a general idea of how much more you can expect to pay if and when this bill passes into law.
Looking at the bigger picture, a 16.55 cents/gallon tax on home heating oil would cost the average Connecticut homeowner about $166 in the first year of the tax. That $166 increase is for the first year of the tax only … since the bill calls for the tax to increase every year, so too would your fuel costs.
According to the Connecticut General Assembly’s official website, the funds collected from this fee are to be dispersed as follows:
This carbon tax means residents of Connecticut will pay more for heating oil, natural gas, electricity (which is generated using fossil fuels), gasoline and other energy commodities.
For more information or to voice your opinion, please contact your local representation.