A conservative approach to addressing climate change

As has been widely reported, the U.S. meat packing industry is now dominated by four out-of-state meat packing companies that dictate the prices Montana ranchers receive for beef, poultry and pork. Most ranchers have no choice but to send cattle sometimes hundreds of miles away for processing, only to be shipped back to Montana for sale.

Also widely reported is the unending drought Montana is experiencing, a drought exacerbated by climate disruption caused by greenhouse gas emissions. With less water to grow hay for feed, hay prices skyrocketed last year to all-time highs in some cases.

These two realities combined have put many smaller, local ranchers at significant risk of financial failure. (Laura has first hand experience with disappointing prices at the cattle sale, and with paying too much for hay in drought years). Thankfully, there are solutions available that can help address both problems.

First, both Senators Tester and Daines recognize the severity of the meat-packing problem and are backing bills to address this issue. We should all support these efforts to protect our vital Montana industry and way of life.

Second, there is a conservative, small-government approach to addressing climate disruption over the longer-term. Known as a “carbon fee with cash back” policy, it’s a fee assessed where fossil fuels enter the economy (e.g. the first point at which the fossil fuel is sold). The fee is based upon the amount of carbon dioxide that will be released when the fuel is burned. Studies show that placing a fee on carbon emissions in this manner will encourage a shift away from fossil fuel consumption without imposing government regulations that “choose” winners and losers.

Why should Montanans care about reducing fossil fuel consumption? At a global scale, settled science clearly shows that greenhouse gas emission produced through the burning of fossil fuels is disrupting the relative balance of the environment that we’ve enjoyed for the past 10,000 years.

Here in Montana, our economic mainstays of farming, ranching and timber harvest are all negatively impacted by climate disruption caused by greenhouse gas emissions. Shorter, warmer, drier winters have become a new normal especially in eastern Montana. Coupled with longer, hotter summers interspersed with dramatic temperature swings throughout the year, ranchers and farmers are suffering.

To ensure a more predictable transition from fossil fuels, an initial per-ton carbon fee would start low and gradually increase year over year (e.g. begin with a $15 per ton fee and increase by $10 per ton each year). This gradual, predictable cost increase incentivizes a transition to lower carbon emissions energy sources and products while not sending shock waves through our economy in the process. Importantly, the policy can be tailored to protect industries like farming and ranching through fee-rebates on things like agricultural fuels.

Every dollar collected would be placed in a trust that distributes the funds out to all Americans, based upon household membership. In this way, Americans would be free to decide how to use the cash payment, whether to offset the short-term cost increases incurred as we transition to low-carbon alternatives, purchase lower carbon products like electric vehicles, or save it for a rainy day.

To reiterate, a carbon fee and dividend policy is a classically conservative approach to addressing climate disruption, and numerous studies have shown this policy offers an efficient, effective, predictable way to shift from fossil fuel dependence. Indeed, both the Business Roundtable and American Petroleum Institute support a carbon fee and dividend policy for these reasons.

Please urge Senators Tester and Daines to support a carbon fee and cash back policy. Montana ranchers need action and, as the U.S. Chamber of Commerce states, “inaction is not an option” when it comes to addressing climate change.

Mike Wood of Missoula, and Laura Reynolds of Kalispell are both members of Citizens Climate Lobby in Montana.