Part I - Two fees adjust costs to reveal
the true price of energy use
A Security Fee would be proportional to how a fuel or energy source compromises national security—making defense costs visible in energy prices.
Example: For electricity produced from coal, which is produced domestically, there would be no security fee at all, while for gasoline (that enriches regimes hostile to America) and electricity produced from nuclear power plants (that are obvious terrorist targets), the fee would higher.
A Carbon Fee would correlate to the amount of greenhouse gasses produced and/or the extraction impacts on the environment—making environmental costs visible in energy prices.
Example: For energy sources that contribute large amounts of greenhouse gases or are dangerous to extract (e.g., coal, oil, natural gas), carbon fees would be high, while cleaner technologies (e.g., nuclear, wind, and solar) would have little or no carbon fee.
These fees would be added to each energy purchase made by consumers and businesses, effectively allowing them to see the true cost of their energy consumption choices.
Part II - Return all fees to U.S. taxpayers,
enabling clean and safe energy choices
With Fair Price Energy, every taxpayer who files an income tax return would receive a Fee Return equal to the total fees collected for the entire country during the year divided by the total number of U.S. taxpayers. Thus, every individual US taxpayer would receive a return of equal size.
With the fee return, individuals who use less energy than average would actually pay less in fees than they would receive in their fee return. Those who consume more than their share of energy would pay more into the system than they would get back.
Corporations would not receive a fee return, but would be able to use the market to recoup their increased costs.