4.4.2 Aviation Carbon Charges and Fuel Taxes

LPDD Recommendation: “Congress and States could increase taxes on fuel used in domestic aviation.”

LPDD Recommendation: “Congress could increase taxes on international flights leaving the United States.”

LPDD Recommendation: “Congress could increase taxes on passenger tickets.”

LPDD Recommendation: “Congress, the FAA, and States could carry out a full review of all the taxes and charges placed on the aviation industry with the explicit objective of considering whether they are adequate in light of aviation’s climate impact.”

LPDD Recommendation: “Congress could adopt an economy-wide carbon trading or tax measure, including aviation.”

New Jersey’s proposed AB 4392

New Jersey’s proposed AB 4392 (2018) would have raised airline fuel taxes $0.04 per gallon on fuel purchased in New Jersey airports offering more than 20,000 commercial flights a year, using that revenue to fund train service extensions.

The American Clean Energy and Security Act

Both the proposed American Clean Energy and Security Act and the Boxer-Kerry Senate Bill (2009) would have included requirements that petroleum-based liquid fuel producers, including aviation fuel, buy carbon permits.