Boulder, CO Citizens Pass First Carbon Tax in Nation

Type: Ballot Initiative

Status: Passed on 11/7/06

Source File: http://www.bouldercolorado.gov/index2.php?option=com_content&do_pdf=1&id=6136

Summary & Ballot Text:

City of Boulder voters approved Initiative 202, the Climate Action Plan Tax, on Tuesday, making this the first time in the nation that a municipal government will impose an energy tax on its residents to directly combat global warming. The tax will be collected by the local electric utility company based on the amount of electricity used.

This energy tax is also referred to as a carbon tax since most of Boulder's electricity comes from the burning of coal which is directly related to carbon or greenhouse gas emissions. The tax will be used to fund the city's Climate Action Plan, which was approved by City Council in June 2006.

The average household will pay $1.33 per month and an average business will pay $3.80 per month. The tax will generate about $1 million annually through 2012 when the tax is set to expire. Estimated energy cost savings from implementing the Climate Action Plan are $63 million over the long term.

Boulder's City Council adopted the goals of the Kyoto Protocol in 2002 to reduce greenhouse gas emissions seven percent below 1990 levels by 2012. The Climate Action Plan is a roadmap to meet the Kyoto goal and was created by staff, energy experts in the community and local stakeholders. The main strategies are to increase energy efficiency, promote renewable energy and alternative vehicle fuels, and reduce vehicle miles traveled.

Boulder's Mayor Mark Ruzzin signed the Mayor's Climate Protection Agreement along with 328 other mayors from around the nation representing over 53.2 million people. This agreement promotes strong policy resolutions calling for cities, communities and the federal government to take actions to reduce global warming pollution.

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BALLOT ISSUE NO. 202
CLIMATE ACTION PLAN TAX

Shall City of Boulder taxes be increased $860,265 annually (in the first year), and up to $1,342,000 each year thereafter for the period of April 1, 2007 to March 31, 2013, by authorizing the city council to levy and collect a Climate Action Plan Tax as an excise tax upon persons consuming electricity as residential, commercial, or industrial customers, and providing an exemption for voluntary purchases of utility provided wind power. The tax shall be established with a first year rate of $0.0022 per kilowatt hour (kwh) for residential customers, $0.0004 per kwh for commercial customers, and $0.0002 per kwh for industrial customers. The tax shall take effect on April 1, 2007 and expire on March 31, 2013, and shall be for the purpose of funding a Climate Action Plan to reduce greenhouse gas emissions. The measure would establish city council authority to increase the tax after the first year up to a maximum permitted tax rate of $0.0049 per kwh for residential customers; $0.0009 per kwh for commercial customers; and $0.0003 per kwh for industrial customers.

Tax revenues generated would be used to implement programs to increase energy efficiency, increase renewable energy use, reduce emissions from motor vehicles, and take other steps toward the goal of meeting the Kyoto Protocol and in connection with the Climate Action Plan Tax, shall the full proceeds of such taxes at such rates and any earnings therefrom be collected and spent without limitation or condition, and without limiting the collection or spending of any other revenues or funds by the City of Boulder, under article X, section 20 of the Colorado Constitution or any other law?

And in connection with the Climate Action Plan Tax, shall the full proceeds of such taxes at such rates and any earnings therefrom be collected and spent without limitation or condition, and without limiting the collection or spending of any other revenues or funds by the City of Boulder, under article X, section 20 of the Colorado Constitution or any other law?