Energy Innovation and Carbon Dividend Act of 2023

HR 5744, the Energy Innovation and Carbon Dividend Act of 2023, would impose a carbon fee on fossil fuels (crude oil, coal, and natural gas) based on their greenhouse gas emissions, starting at $15 per metric ton of CO2 equivalent in 2023 and increasing by $10 annually. The revenue from this fee would be distributed directly to American citizens as monthly "carbon dividends" through a new trust fund, with adults receiving full payments and children under 19 receiving half payments. The bill also establishes a border fee adjustment on imported carbon-intensive products to prevent companies from moving operations to countries with weaker environmental regulations. It sets specific emissions reduction targets: 8% annual reductions from 2025-2030 and 2.5% annual reductions from 2031-2050 relative to 2005 levels. The carbon fee would be phased out once emissions drop to 10% of 2005 levels and monthly dividends fall below $20 for three consecutive years.