Re "Lining up for the cap and trade gusher" (Dan Morain, March 23): Dan Morain's humorous description of cap-and-trade funding distribution shows how convoluted that process is. A revenue neutral carbon fee and dividend policy, however, is clearer by returning fees charged at the raw material source directly to households. By receiving a dividend check, lower and middle income taxpayers will be able to absorb the higher gas prices, while alternative methods of energy production are developed.
Senate President Pro Tem Darrell Steinberg's plan, linked with California's current cap-and-trade program, will provide a test program for the rest of the country. With all money from carbon fees returned to individual households, 66 percent of American households will break even or receive more in their dividend check than the increased prices. The revenue neutral carbon fee plan can be put forward by legislators, state and federal, as their constituents will be protected from higher costs. -- Eileen Heinrich, Sacramento