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Pillar Eleven: Carbon-Pricing Hybrid with Dividend and Investment

v1.0 · Created May 7, 2026 for v3.5.0 (Pillar Eleven added; third of four planned new pillars per v4.0.0 architecture proposal, sequenced one at a time per Jason's direction; follows Pillar Nine in v3.3.0 and Pillar Ten in v3.4.0) · Jason Robertson · Ohio · 2026

Sources Baseline. Numerical claims in this document derive from the canonical sources cataloged in 05_Sources_And_Derivation_Convention.docx, including: Environmental Protection Agency (EPA) Inventory of U.S. Greenhouse Gas Emissions and Sinks (the approximately five billion metric ton annual U.S. CO2-equivalent emissions figure); Energy Information Administration energy-by-source data; Treasury Office of Tax Analysis distributional analyses of carbon-pricing proposals; CBO scoring of carbon-pricing legislation including the Energy Innovation and Carbon Dividend Act and various Clean Energy and Sustainability Accelerator proposals; Brookings Institution and Resources for the Future carbon-pricing analyses; the Climate Leadership Council's Carbon Dividends Plan as published in 2017 and updated subsequently; Citizens Climate Lobby technical materials on the Energy Innovation and Carbon Dividend Act; the World Bank's Carbon Pricing Dashboard for international comparisons; the Regional Greenhouse Gas Initiative (RGGI) and California Cap-and-Trade program data; British Columbia's revenue-neutral carbon tax data 2008-present; the European Union Emissions Trading System (EU ETS) data; and the IPCC Working Group III Mitigation reports for emissions-pricing impact projections. Empirical claims requiring external credentialed review are tracked in the Open Issues Registry under future RESEARCH items as engagement targets are identified.

Note on the existing Climate Policy Beyond Grid Modernization analysis. This document is the primary substantiation for Pillar Eleven. The previously-existing 05_Climate_Policy_Beyond_Grid_Modernization.docx (item in the analytical framing folder) provides analysis of climate policy components that interacted with the platform's prior architecture (where climate was not a pillar). With Pillar Eleven established, that document becomes supplementary historical context rather than the primary climate reference; readers interested in Pillar Eleven should treat this document as primary.

# Why Climate Is the Eleventh Pillar

The platform's first ten pillars address retirement security, wage architecture, education access, healthcare, childcare, mental health, civic infrastructure, paid family time, long-term care, and federal housing investment. Climate has been visibly absent from the pillar architecture even though the platform's existing analytical materials addressed climate policy adjacent to but outside the pillar framework. v3.5.0 closes this gap by elevating climate policy to the eleventh pillar.

The case for elevating climate is straightforward. The United States emits approximately five billion metric tons of CO2-equivalent annually, contributing approximately fifteen percent of global emissions despite housing approximately four percent of global population. Climate change is the largest collective-action challenge facing the country and the world; market signals do not internalize the externalities imposed by greenhouse gas emissions; voluntary mitigation has proven inadequate at the necessary scale and speed; existing federal climate policy is a patchwork of subsidies, regulations, and state-level cap-and-trade programs that do not provide an economy-wide price signal. Pillar Eleven addresses this through an economy-wide carbon price paired with a hybrid dividend-and-investment revenue allocation that returns half of carbon-price revenue to households as a dividend and invests half in clean energy infrastructure, grid modernization, and just-transition support for fossil-fuel-dependent communities. (Source baseline: see Sources_And_Derivation_Convention.docx.)

Climate fits the platform's architectural pattern with the same structural difference that applied to Pillar Ten (Federal Housing Investment): the funding mechanism is not a payroll contribution because the policy goal is not an individual benefit calibrated to the contribution base. The carbon price is a corrective price that internalizes externalities; revenue from the price is not the policy's purpose but a consequence of it, and revenue allocation reflects equity-and-efficiency design choices about how to handle the regressive incidence of carbon pricing. Pillar Eleven therefore parallels Pillar One (Community Contribution Plan) and Pillar Ten (Federal Housing Investment) in being non-payroll-funded rather than parallel to Pillars Four through Six and Eight through Nine.

# The Pillar Eleven Architecture

## Carbon Price Specification

Pillar Eleven establishes an economy-wide upstream carbon price applied to fossil fuels at the point of extraction (for domestically produced fossil fuels) or import (for imported fossil fuels). Upstream pricing has substantial administrative advantages over downstream pricing: the number of covered entities is small (a few hundred upstream fossil-fuel producers and importers rather than millions of downstream emitters); the carbon content of fossil fuels is well-measured at extraction; the price flows through to downstream users via market mechanisms (electricity prices reflect natural gas and coal prices; gasoline prices reflect crude oil prices). Coverage of the upstream price reaches approximately seventy-five to eighty percent of U.S. CO2-equivalent emissions; the remaining twenty to twenty-five percent (agricultural emissions, certain industrial process emissions, fluorinated gases) requires complementary policy mechanisms not directly priced through the upstream carbon mechanism.

## Price Trajectory (Canonical)

The carbon price starts at fifty dollars per metric ton CO2-equivalent in year one and rises to one hundred dollars per metric ton CO2-equivalent over an approximately ten-year transition period. This trajectory is calibrated against the social cost of carbon estimates (the Interagency Working Group estimates and updated EPA estimates place the social cost of carbon in the range of approximately fifty to one hundred ninety dollars per ton at three percent discount rates and approximately one hundred ninety to four hundred dollars per ton at lower discount rates more consistent with intergenerational equity considerations). The fifty-dollar starting price is at the lower end of social-cost-of-carbon estimates and is calibrated for political feasibility and economic transition manageability; the hundred-dollar mature price is in the middle of social-cost-of-carbon estimates and provides a meaningful price signal at maturity. Subsequent automatic adjustments (linked to emissions trajectory or social-cost-of-carbon update) are part of the program design and to be specified in implementing legislation.

## Coverage and Border Adjustment

The carbon price applies to upstream fossil-fuel producers and importers covering approximately seventy-five to eighty percent of U.S. CO2-equivalent emissions. A border adjustment mechanism applies the carbon price to imported goods based on their embedded carbon content, calibrated to prevent carbon leakage (the migration of emissions-intensive production to jurisdictions without carbon pricing) and to incentivize trading partners to adopt carbon pricing. The border adjustment also exempts U.S. exports from the carbon price to maintain export competitiveness; this is the standard design in carbon-pricing proposals including the Climate Leadership Council's Carbon Dividends Plan and the Energy Innovation and Carbon Dividend Act. Border adjustment design has substantial technical and trade-law complexity that the platform document acknowledges as requiring credentialed external review (international trade law expertise is one of the open issues for Pillar Eleven).

## Revenue Allocation: Fifty-Fifty Dividend and Investment (Canonical)

Total carbon-price revenue at maturity is approximately three hundred to four hundred billion dollars per year (one hundred dollars per ton applied to approximately three to four billion tons covered). At the starting fifty-dollar price, revenue is approximately one hundred fifty to two hundred billion per year, ramping to mature levels as the price rises and as remaining covered emissions decline due to the price's incentive effect. Pillar Eleven splits this revenue fifty-fifty between a household dividend and a clean-energy investment fund. The fifty-fifty split is the platform's architectural canonical and is calibrated against two design considerations: a dividend large enough to meaningfully offset the carbon-price's regressive incidence on lower-income households (lower-income households spend a larger share of income on energy and energy-intensive goods, so flat-rate dividends provide net benefit to most below-median-income households even after the carbon price flows through to consumer prices); and an investment portion large enough to materially accelerate clean-energy transition and just-transition support beyond what the price signal alone produces.

# Pillar Eleven Components

## Component One: Carbon Dividend

Approximately fifty percent of carbon-price revenue is returned to U.S. residents as an equal per-capita dividend, with adjustments for household composition. Specifically: each adult U.S. resident receives an equal share; each child receives a half-share, capped at two children per household. At the starting fifty-dollar price with approximately one hundred billion in dividends, the per-adult dividend is approximately three hundred to three hundred fifty dollars per year, with a household of four (two adults, two children) receiving approximately one thousand dollars per year. At the mature one-hundred-dollar price with approximately two hundred billion in dividends, the per-adult dividend is approximately six hundred to seven hundred dollars per year, with a four-person household receiving approximately two thousand dollars per year. The dividend is delivered through the Treasury (mechanism to be specified; possibilities include direct deposit parallel to refundable tax credits, monthly distribution similar to Social Security disbursement, or quarterly distribution). The dividend is not means-tested; high-income households receive the same dividend as low-income households; this is a feature not a bug because the carbon price they pay through consumption is also not means-tested. The distributional effect of the carbon price plus dividend is progressive on net for households below approximately the seventieth percentile of household income, with the upper-third of the income distribution paying more in the carbon price than they receive in dividend (which is the policy's intent).

## Component Two: Clean Energy Infrastructure Investment

Approximately twenty-five percent of carbon-price revenue (one half of the investment portion) is allocated to clean energy infrastructure investment. This includes: utility-scale renewable electricity generation deployment; energy storage deployment to support variable renewable integration; building electrification support including heat pump deployment; industrial decarbonization technology deployment including hydrogen and carbon capture for hard-to-abate sectors; clean transportation infrastructure including charging network buildout for electric vehicles; methane reduction including landfill gas capture and oil-and-gas system leak reduction. The specific portfolio allocation is determined through a federal-state cooperation framework with state implementation flexibility within federal program parameters. At maturity, this component flows approximately one hundred billion per year for clean energy infrastructure, substantially supplementing the price-signal incentive and accelerating the transition timeline beyond what the price alone produces.

## Component Three: Transmission Grid Modernization

Approximately ten percent of carbon-price revenue is allocated to transmission grid modernization, including high-voltage long-distance transmission buildout to support inter-regional renewable integration; distribution grid hardening for climate-resilience including undergrounding in fire-prone areas; smart-grid deployment for demand-response and distributed-energy-resource integration; and federal-state coordination on transmission siting (the existing federal authority is limited; state-level siting is the principal binding constraint). At maturity, this component flows approximately forty billion per year, substantial relative to current federal grid investment but calibrated against the recognized need to roughly double current transmission infrastructure to support the clean-energy transition. The platform's existing Pillar Seven (Civic Infrastructure) addresses physical infrastructure broadly; Pillar Eleven's Component Three is climate-specific transmission and grid investment that complements rather than substitutes for Pillar Seven's existing infrastructure commitments.

## Component Four: Just Transition Support

Approximately ten percent of carbon-price revenue is allocated to just-transition support for fossil-fuel-dependent communities and workers. This includes: direct income support for workers transitioning out of fossil-fuel industries (similar to Trade Adjustment Assistance but calibrated for the longer transition timeframe); training and credentialing pathways for clean-energy occupations; community-level economic development support for regions whose economies have been heavily dependent on fossil-fuel extraction (Appalachian coal communities; Permian Basin and Gulf of Mexico oil-and-gas communities; some Western state coal-and-oil communities); pension and healthcare protection for retirees of fossil-fuel companies. At maturity, this component flows approximately forty billion per year. Just-transition support is essential not just on equity grounds but on political-feasibility grounds: a carbon-pricing architecture that fails to address fossil-fuel-dependent community concerns has been politically unsustainable in U.S. context, as the experience of multiple state-level carbon-pricing efforts demonstrates.

## Component Five: Innovation and Federal Programs

Approximately five percent of carbon-price revenue is allocated to clean-energy innovation programs (DOE ARPA-E expansion; DOE national laboratories climate-relevant research; agricultural decarbonization research at USDA; carbon-removal technology research) and to federal program adaptations not captured in Components Two through Four (including support for federal facility decarbonization, federal procurement standards, and federal-agency capacity-building for climate program administration). At maturity, this component flows approximately twenty billion per year. The smaller size of this component reflects the platform's view that direct deployment investment (Component Two) and grid modernization (Component Three) are higher-leverage uses of carbon-price revenue than additional innovation funding, given that core clean-energy technologies are already cost-competitive at scale and the binding constraint is deployment rather than invention.

# Transition Mechanics

The transition to full Pillar Eleven implementation proceeds along the price trajectory specified above. Year one through year three: legislative authority established; federal program structure created (including Treasury infrastructure for dividend distribution and federal investment-fund infrastructure for the investment portion); first dividend payments distributed (at the starting fifty-dollar price); border adjustment mechanism operationalized; clean energy investment flows initiated. Year three through year ten: carbon price rises along its trajectory; dividend amounts rise correspondingly; investment flows scale up; just-transition support reaches steady-state operation. Year ten and beyond: the mature one-hundred-dollar price applies (with subsequent adjustments per program design); revenue flows reach maturity; covered emissions decline as the price's incentive effect produces decarbonization; revenue ramps down over time as emissions decline (this is intended behavior of a corrective price; revenue decline reflects policy success not failure).

During transition, existing climate policies continue to operate. State-level cap-and-trade programs (RGGI; California; Washington) remain operational; the federal carbon price provides a price floor under state programs without preempting them. Existing clean-energy tax credits (Inflation Reduction Act provisions) continue to operate during the transition; specific interactions are managed through implementing legislation. Climate-related federal regulatory programs (EPA Clean Air Act regulations on greenhouse gases; CAFE fuel-economy standards; appliance efficiency standards) continue to operate; the carbon price is complementary to rather than substituting for regulatory programs.

# Federal-State Coordination Specifics

Federal-state coordination on Pillar Eleven addresses several specific issues. State-level carbon-pricing programs continue to operate; the federal carbon price establishes a national floor and can be supplemented by state-level programs. State implementation of clean-energy investment program funds (Component Two) follows a federal-state cooperation framework similar to that used for Pillar Ten (Federal Housing Investment). Transmission siting (Component Three) is currently substantially state-administered with limited federal authority; Pillar Eleven includes federal authority for inter-regional transmission siting under specific conditions, but state authority remains primary for in-state and local transmission. Just-transition support (Component Four) flows substantially to state and local economic development entities for community-level implementation, with federal program oversight and accountability mechanisms.

Tribal nation coordination follows the platform's Tribal Consultation Framework. Climate impacts on tribal lands are substantial in many cases (drought, wildfire, sea-level rise affecting coastal tribes, permafrost degradation affecting Alaska Native communities); Pillar Eleven includes tribal-nation engagement on both the dividend distribution (each tribal-nation member receives the dividend on the same basis as other U.S. residents) and the investment programs (clean-energy and just-transition investments on tribal lands proceed through government-to-government consultation). Territorial coordination similarly follows the platform's existing territories framework.

# Comparison with Existing Approaches

## Comparison with Pure-Dividend Carbon Pricing (CLC; Citizens Climate Lobby)

The Climate Leadership Council's Carbon Dividends Plan (2017 with subsequent updates) and the Citizens Climate Lobby's Energy Innovation and Carbon Dividend Act both propose carbon pricing with one hundred percent of revenue returned to households as dividend. Pillar Eleven differs from these approaches in returning fifty percent rather than one hundred percent as dividend, with the other fifty percent invested in clean energy infrastructure, grid modernization, just transition, and innovation. The architectural choice reflects two judgments. First: the carbon-price-only-with-dividend approach relies on the price signal alone to drive deployment of clean-energy infrastructure; the platform's view is that the price signal is necessary but not sufficient at the scale and speed required by climate science, and direct investment substantially accelerates the transition. Second: pure-dividend approaches do not address just-transition needs or grid modernization needs that have substantial public-good character and are inadequately delivered through the price signal alone. The trade-off is that the dividend is smaller per-household under Pillar Eleven than under pure-dividend approaches; this is acknowledged honestly. The fifty-fifty split is a policy judgment that the investment value exceeds the dividend value at the margin; reasonable people can disagree, and the canonical is open to revision based on credentialed external review.

## Comparison with State-Level Cap-and-Trade (RGGI; California)

The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector in eleven Northeast and Mid-Atlantic states with auctioned emissions allowances. RGGI prices have ranged approximately ten to fifteen dollars per ton in recent years. California's Cap-and-Trade Program covers approximately eighty percent of state CO2-equivalent emissions including industrial and transportation fuels, with prices in the approximately twenty-five to thirty-five dollar range recently. Both programs have reduced covered-sector emissions and generated substantial revenue used for clean-energy investment, ratepayer relief, and other state-level programs. Pillar Eleven's federal carbon price is structurally similar to these state-level programs but with national coverage and substantially higher price levels. The platform's view is that state-level programs have demonstrated feasibility and have built constituency support; a federal program builds on this state-level foundation while addressing the leakage and competitiveness concerns that limit state-level program ambition.

## Comparison with International Carbon Pricing (EU ETS; British Columbia; Sweden)

The European Union Emissions Trading System (EU ETS) is the largest carbon-pricing program globally, covering approximately forty percent of EU emissions across power generation, industry, and intra-EU aviation. Recent EU ETS prices have ranged approximately seventy to one hundred euros per ton. British Columbia's carbon tax, established in 2008 and currently at approximately seventy Canadian dollars per ton, is the longest-running revenue-neutral carbon tax in North America and provides substantial empirical evidence that carbon pricing produces measurable emissions reductions without economic harm. Sweden's carbon tax, established in 1991 and currently at approximately one hundred thirty U.S. dollar equivalent per ton, provides the longest record of high-price carbon taxation; Sweden has reduced per-capita CO2 emissions by more than half while growing its economy substantially. Pillar Eleven's pricing trajectory ($50 starting; $100 mature) is calibrated against this international experience and is not an outlier in either direction; the policy is feasible in the sense that comparable programs have been operating successfully in peer economies for years to decades.

# Workforce Considerations

Pillar Eleven's full implementation produces substantial workforce effects. Direct effects: clean-energy deployment investment supports clean-energy occupations (solar, wind, electrical, construction, manufacturing) at scale; transmission grid modernization supports electrical occupations including substantial demand for line workers, electrical engineers, and grid-control technicians; just-transition support directly funds workers transitioning out of fossil-fuel industries. Indirect effects: clean-technology manufacturing scale-up depends on workforce capacity in semiconductor manufacturing, battery manufacturing, electrical components, and related supply chains; building electrification depends on heat-pump installation workforce capacity; agricultural decarbonization depends on agricultural-extension and conservation-agriculture workforce capacity.

Workforce strategy includes: pre-apprenticeship and apprenticeship pathway funding for clean-energy occupations (parallel to Pillar Ten's construction-trades approach); compensation calibration above platform-canonical Pillar Two wage floors for trade and professional occupations; integration with existing community-college clean-energy programs; immigration policy interaction (clean-energy workforce expansion depends partly on immigration policy similar to other workforce-constrained sectors); and labor-standards integration including prevailing-wage and project-labor-agreement provisions on federally-funded clean-energy investment (parallel to Davis-Bacon application to Pillar Ten construction investment).

# Fiscal Analysis

Pillar Eleven's gross revenue at maturity is approximately three hundred to four hundred billion dollars per year (one hundred dollars per metric ton applied to approximately three to four billion tons of covered emissions). At the starting fifty-dollar price, gross revenue is approximately one hundred fifty to two hundred billion per year. Revenue declines over time as the price's incentive effect produces decarbonization; the platform views this revenue decline as intended behavior of a corrective price rather than as a fiscal problem to be managed. Revenue is split fifty-fifty between dividend and investment; at maturity, approximately one hundred fifty to two hundred billion per year flows to dividends and the same amount flows to investment programs (Components Two through Five).

Net fiscal impact: Pillar Eleven is a net wash on the federal budget bottom line because all carbon-price revenue is returned to households via dividends or invested in specified clean-energy and just-transition programs. The pillar does not contribute to the platform's other commitments and is not drawn upon by the high-earner architecture or sovereign fund. This fiscal independence is a feature: Pillar Eleven's operation does not depend on the platform's other fiscal mechanisms and could be borrowed independently by an organization adopting just the carbon-pricing-with-hybrid-revenue-allocation policy. Macroeconomic effects: the carbon price flows through to consumer prices for energy and energy-intensive goods; the dividend offsets the regressive incidence for most below-median-income households; the investment portion accelerates clean-energy transition with associated employment effects in clean-energy sectors offset by employment effects in fossil-fuel sectors which the just-transition support addresses. Net macroeconomic effect: studies of comparable carbon-pricing-with-revenue-recycling programs suggest small-positive to small-negative GDP effects with significant emissions reductions; British Columbia's experience is the closest empirical reference.

# Open Issues and Limits

Pillar Eleven has the same kinds of open issues as the platform's other adjacent pillars plus several specific to the climate context: actuarial validation of revenue projections under the price trajectory; institutional design for Treasury dividend distribution; institutional design for federal investment-fund administration; international trade law review of the border adjustment mechanism; just-transition program design specifics; and the complementary-policy question of how non-priced emissions (agriculture; certain industrial process emissions; fluorinated gases) are addressed alongside the upstream carbon price.

Specific items requiring credentialed external review, to be added to the Open Issues Registry as engagement targets are identified. First: climate-economics review of the price trajectory against social cost of carbon estimates and against emissions trajectory targets (does fifty-to-one-hundred dollars per ton produce sufficient incentive at the necessary scale and speed; what alternative trajectories are reasonable). Second: international trade law review of the border adjustment mechanism (the WTO compatibility of border carbon adjustment is an active legal question; the EU's Carbon Border Adjustment Mechanism provides ongoing precedent that requires monitoring). Third: institutional design review of the Treasury dividend distribution (existing refundable-credit infrastructure provides foundation; specific delivery mechanism for monthly or quarterly dividend has implementation choices). Fourth: institutional design review of the federal clean-energy investment fund (existing precedents include the LIHEAP allocation framework, the Highway Trust Fund, and the proposed Clean Energy Accelerator; specific governance and accountability design has options). Fifth: just-transition program design with credentialed input from labor economists and from labor unions in fossil-fuel-dependent industries. Sixth: complementary-policy review for non-priced emissions (agriculture sector engagement; industrial-process emissions including cement and steel; fluorinated-gas regulation under existing EPA authority). Seventh: distributional analysis at finer detail than the platform provides (how does the carbon-price-plus-dividend incidence vary by household composition, geographic region, energy-source mix, and other variables).

# Cross-References

This document is the primary substantiation document for Pillar Eleven (Climate Architecture). It is referenced from the master We The People Platform document's Pillar Eleven section (added in v3.5.0). The pillar's adoption guidance for advocacy organizations is documented in 05_Pillars_Borrow_Independently.docx (updated in v3.5.0 to include Pillar Eleven). The pillar's fiscal stream is documented in 05_Federal_Fiscal_Impact_Analysis.docx (updated in v3.5.0). The previously-existing Climate Policy Beyond Grid Modernization analysis (item in the analytical framing folder) provides background on how the platform's prior architecture interacted with climate policy components; with Pillar Eleven established, that document becomes supplementary historical context. The State-Level Cooperation Requirements document provides the broader framework for federal-state cooperation that Pillar Eleven draws on for state-program coexistence. The Tribal Consultation Framework provides the framework for tribal-nation engagement on the tribal-lands aspects of Pillar Eleven.