# Market-Based Greenhouse Gas Emission Reduction Legislation: 108th Through 118th Congresses > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/crs%3AR45472 ## Record - **Collection:** Congressional research report - **Document type:** CRS Report - **Published:** December 4, 2024 - **Citation:** R45472 ## Text Market-Based Greenhouse Gas Emission Reduction Legislation: 108th Through 118th Congresses Updated December 4, 2024 Congressional Research Service https://crsreports.congress.gov R45472 SUMMARY Market-Based Greenhouse Gas Emission Reduction Legislation: 108th Through 118th Congresses R45472 December 4, 2024 Jonathan L. Ramseur Specialist in Environmental Policy Members of Congress have expressed a range of perspectives regarding climate change issues and the policy options that address greenhouse gas (GHG) emissions. For example, between the 112th Congress and the 118th Congress, Members introduced resolutions in either the House, Senate, or both chambers expressing the view that a carbon tax is not in the economic interests of the United States. During this same time period, a number of Members introduced proposals that would limit GHG emissions through market-based approaches. Market-based approaches that address GHG emissions typically involve either a cap-and-trade system or a carbon tax or emissions fee program. Both approaches would place a price—directly or indirectly—on GHG emissions or their inputs, namely fossil fuels. Both would increase the price of fossil fuels, and both would reduce GHG emissions to some degree. Both would allow covered entities to choose the best way to meet their emission requirements or reduce costs, potentially by using market forces to minimize national costs of emission reductions. Preference between the two approaches ultimately depends on which variable policymakers prefer to precisely control—GHG emissions levels or GHG emissions prices. A primary policy concern with either approach is the economic impacts that may result. Expected energy price increases could have both economy-wide impacts (e.g., on the U.S. gross domestic product) and disproportionate effects on specific industries and particular demographic groups. The degree of these potential effects would depend on a number of factors, including the magnitude, design, and scope of the program and the use of tax or fee revenues or emission allowance values. As the figure below illustrates, between the 108th and 111th Congresses, most of the introduced bills would have established cap-and-trade systems. Between the 112th and 118th Congresses, most of the introduced bills would have established carbon tax or emissions fee programs. The proposals range in the scope of emissions covered from carbon dioxide (CO2) emissions from fossil fuel combustion to multiple GHG emissions from a broader array of sources. In addition, the proposals differ by how, to whom, and for what purpose the fee revenues or allowance value would be applied. Number and Type of Introduced GHG Emission Reduction Bills 108th Congress through 118th Congress Source: Prepared by CRS. Notes: “Other Approaches” include (1) proposals that did not specify the overall framework but would have authorized EPA to establish a GHG emission reduction program and (2) proposals that combine elements from a cap-and-trade system with price control features in a carbon tax or emissions fee system, sometimes described as hybrid approaches. Congressional Research Service Market-Based Greenhouse Gas Emission Reduction Legislation This report includes a separate table for each Congress, comparing GHG emission reduction legislation by the following characteristics: • General framework: the proposed program structure and scope in terms of emissions covered, multiple GHG emissions, or just CO2 emissions. • Covered entities/materials: a list of the industries, sectors, or materials that would be subject to the program. • • Emissions limit or target: the GHG or CO2 emissions target or cap for a specified year. • Offset and international allowance treatment: the degree to which offsets and international allowances could be used for compliance purposes and the types of offset activities that would qualify. • Mechanism to address carbon-intensive imports: a U.S. GHG reduction program may create a competitive disadvantage for some domestic businesses, particularly carbon-intensive, trade-exposed industries. • Additional GHG reduction measures: other mechanisms designed to further reduce GHG emissions that are not covered in the central program. Distribution of allowance value or tax revenue: how emission allowance value or carbon tax or fee revenue would be distributed. Congressional Research Service Market-Based Greenhouse Gas Emission Reduction Legislation Contents Introduction ..................................................................................................................................... 1 Background ..................................................................................................................................... 3 What Is a GHG Emissions Cap-and-Trade System? ................................................................. 4 What Is a Carbon Tax or Emissions Fee?.................................................................................. 4 GHG Emission Reduction Legislation by Congress ....................................................................... 5 Figures Figure 1. Number and Type of Market-Based GHG Emission Reduction Bills Introduced in 108th Congress Through 118th Congress................................................................................... 3 Tables Table 1. GHG Emission Reduction Proposals: 108th Congress ....................................................... 7 Table 2. GHG Emission Reduction Proposals: 109th Congress ..................................................... 10 Table 3. GHG Emission Reduction Proposals: 110th Congress ..................................................... 17 Table 4. GHG Emission Reduction Proposals: 111th Congress ..................................................... 27 Table 5. GHG Emission Reduction Proposals: 112th Congress ..................................................... 35 Table 6. GHG Emission Reduction Proposals: 113th Congress ..................................................... 37 Table 7. GHG Emission Reduction Proposals: 114th Congress ..................................................... 40 Table 8. GHG Emission Reduction Proposals: 115th Congress ..................................................... 46 Table 9. GHG Emission Reduction Proposals: 116th Congress ..................................................... 58 Table 10. GHG Emission Reduction Proposals: 117th Congress ................................................... 71 Table 11. GHG Emission Reduction Proposals: 118th Congress ................................................... 84 Contacts Author Information........................................................................................................................ 92 Congressional Research Service Market-Based Greenhouse Gas Emission Reduction Legislation Introduction Human activities, particularly fossil fuel combustion and industrial operations, have increased the atmospheric concentration of carbon dioxide (CO2) and other greenhouse gases (GHGs) since the late 1700s. In particular, the atmospheric concentration of CO2 has increased by 49%.1 Climate science indicates that these GHG increases have contributed to a warmer climate today and that, if they continue, they will contribute to future climate change.2 Although a range of actions that seek to reduce GHG emissions are currently under way or being developed on the international3 and subnational level (e.g., individual state actions or regional partnerships),4 federal policymakers and stakeholders have different viewpoints over what, if anything, to do about future climate change and related impacts. Members of Congress have expressed a range of perspectives regarding climate change issues. For example, between the 112th Congress and going through the 118th Congress, Members introduced resolutions in either the House, Senate, or both chambers expressing the view that a carbon tax is not in the economic interests of the United States. In 2016, 2018, and 2024, the House passed resolutions expressing this perspective (H.Con.Res. 89, H.Con.Res. 119, and H.Res. 1085, respectively). During this same time period, a number of Members introduced proposals that would limit GHG emissions through market-based approaches, such as a GHG emission cap-and-trade program or a GHG emissions tax (often referred to as a carbon tax) or fee. In general, a market-based approach would place a price on GHG emissions (e.g., through an emissions cap or emission tax or fee), allowing covered entities to determine their pathway of compliance.5 This report focuses on these types of approaches to address GHG emissions. Other approaches involve a range of policy options, including performance-based or technologybased standards (e.g., best available control technology), public investment, and tax policies.6 Although not discussed in this report, Members have introduced multiple, nonmarket-based proposals that would have likely resulted in reductions in GHG emissions. Several of these 1 U.S. Environmental Protection Agency (EPA), “EPA’s Climate Change Indicators in the United States,” https://www.epa.gov/climate-indicators/climate-change-indicators-atmospheric-concentrations-greenhouse-gases. 2 See U.S. Global Change Research Program, Fifth National Climate Assessment, 2023, https://nca2023.globalchange.gov/; and Intergovernmental Panel on Climate Change, Climate Change 2023: Synthesis Report, Summary for Policymakers, 2023, https://www.ipcc.ch/report/sixth-assessment-report-cycle/. 3 Some countries have levied carbon taxes (or something similar) for over 20 years. For a review of carbon prices in other countries, see World Bank, State and Trends of Carbon Pricing 2024, 2024, https://openknowledge.worldbank.org/entities/publication/b0d66765-299c-4fb8-921f-61f6bb979087. For example, the European Union established a cap-and-trade program in 2005 and covers emissions from the electricity sector, selected energy-intensive industries, and aviation. For an additional source of country specific information, see Climate Action Tracker, https://climateactiontracker.org; and Climate Watch, https://www.climatewatchdata.org/. 4 In the United States, cap-and-trade programs operate in a number of states: California, Washington, and in the Regional Greenhouse Gas Initiative (RGGI), a program involving a number of Northeast states. 5 The 1990 Clean Air Act Amendments established a market-based cap-and-trade program to control the air emissions (sulfur dioxide and nitrogen oxides) that lead to acid rain. Although controversial at its inception, the program is widely considered a success. See, for example, Gabriel Chan et al., The SO2 Allowance Trading System and the Clean Air Act Amendments of 1990: Reflections on Twenty Years of Policy Innovation, Harvard Environmental Economics Program, 2012, https://www.belfercenter.org/sites/default/files/legacy/files/so2-brief_digital4_final.pdf. 6 See CRS In Focus IF11791, Mitigating Greenhouse Gas Emissions: Selected Policy Options, by Jonathan L. Ramseur et al.. Congressional Research Service 1 Market-Based Greenhouse Gas Emission Reduction Legislation proposals were enacted, including tax incentives to promote renewable energy sources7 and carbon capture and sequestration efforts.8 In particular, on August 16, 2022, President Biden signed H.R. 5376 (P.L. 117-169), a budget reconciliation measure commonly referred to as the “Inflation Reduction Act of 2022” (IRA). IRA contains eight titles, each with some provisions that directly or indirectly address issues related to climate change, including reduction of GHG emissions or promotion of adaptation and resilience to climate change impacts.9 Among other provisions, IRA includes a charge on methane emissions from selected entities in the oil and gas industry. The methane emissions charge applies only to methane emissions from specific types of facilities that are required to report their GHG emissions to the Environmental Protection Agency’s (EPA’s) Greenhouse Gas Emissions Reporting Program. This charge is the first time the federal government has directly imposed a charge, fee, or tax on GHG emissions. In 2024, EPA issued a final rule to implement this authority.10 EPA is scheduled to begin collecting the fee in 2025.11 This report provides a comparison of the legislative proposals from the 108th through the 118th Congresses that were and are designed primarily to reduce GHG emissions using market-based approaches, such as cap-and-trade or carbon tax/fee programs. As Figure 1 illustrates, between the 108th and 111th Congresses, most of the market-based climate mitigation bills would have established cap-and-trade systems. In the 111th Congress, Members offered multiple and varied proposals,12 ultimately resulting in the House passage of H.R. 2454, an economy-wide cap-andtrade bill.13 A companion bill in the Senate (S. 1733, 111th Congress) was ordered reported from the Committee on Environment and Public Works, but the bill was not brought to the Senate floor for consideration. In subsequent Congresses, some Members continued to offer GHG emission control legislation, but these proposals saw minimal legislative activity. Between the 112th and 118th Congresses, most of the introduced bills would have established carbon tax or emissions fee programs. The proposals in the 118th Congress range in their scope of emissions covered from CO2 emissions from fossil fuel combustion to multiple GHG emissions from a broader array of sources. In addition, the proposals differ by how, to whom, and for what purpose the fee revenues or allowance value would be applied. Some economic analyses indicate that policy choices to distribute the tax, fee, or emission allowance revenue would yield greater economic impacts than the direct impacts of the carbon price.14 7 See CRS In Focus IF11316, A Brief History of U.S. Electricity Portfolio Standard Proposals, by Ashley J. Lawson. 8 See CRS Report R44902, Carbon Capture and Sequestration (CCS) in the United States, by Angela C. Jones and Ashley J. Lawson. 9 For more details, see CRS Report R47262, Inflation Reduction Act of 2022 (IRA): Provisions Related to Climate Change, coordinated by Jonathan L. Ramseur. 10 EPA, “Waste Emissions Charge for Petroleum and Natural Gas Systems,” 89 Federal Register 5318, November 18, 2024. 11 For more information, see CRS Report R47206, Inflation Reduction Act Methane Emissions Charge: In Brief, by Jonathan L. Ramseur. 12 See CRS Report R40556, Market-Based Greenhouse Gas Control: Selected Proposals in the 111th Congress, by Larry Parker, Brent D. Yacobucci, and Jonathan L. Ramseur. 13 H.R. 2454 (111th Congress), which was introduced by Reps. Waxman and Markey, would have covered approximately 85% of the U.S. GHG emissions. Although not complete coverage, this approach is typically described as economy-wide. 14 For more information, see CRS Report R45625, Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax or Emissions Fee: Considerations and Potential Impacts, by Jonathan L. Ramseur and Jane A. Leggett. Congressional Research Service 2 Market-Based Greenhouse Gas Emission Reduction Legislation The first section of this report provides background information on cap-and-trade and carbon tax or emission fee programs. The second section compares the GHG emission reduction legislation in each Congress (108th-118th). Figure 1. Number and Type of Market-Based GHG Emission Reduction Bills Introduced in 108th Congress Through 118th Congress Source: Prepared by CRS. Notes: “Other Approaches” include (1) proposals that did not specify the overall framework but would have provided EPA with the authority to establish a GHG emission reduction program and (2) proposals that combine elements from a cap-and-trade system with price control features in a carbon tax or emissions fee system, sometimes described as hybrid approaches. Background Over the last 20 years, broad GHG emission reduction legislation has often involved marketbased approaches, such as cap-and-trade systems or carbon tax programs. Market-based approaches generally rely on private-sector choices and market forces to minimize the costs of emission reductions and spur innovation.15 Both carbon tax and GHG emissions cap-and-trade programs would place a price—directly or indirectly—on GHG emissions or their inputs (e.g., fossil fuels), both would increase the price of fossil fuels for the consumer, and both would reduce GHG emissions to some degree. Preference between the two approaches ultimately depends on which variable policymakers prefer to precisely control: GHG emissions levels or GHG emissions prices. As a practical matter, these market-based policies may include complementary or hybrid designs, incorporating elements to increase certainty in price or emissions quantity. For example, legislation could provide mechanisms for adjusting a carbon tax/fee if a targeted range of emissions reductions were not achieved in a given period. Alternatively, legislation could include mechanisms that would bound the range of market prices for a cap-and-trade system’s emissions allowances to improve price certainty. 15 In some instances, legislation would have directed EPA to establish a GHG emissions reduction program with a market-based approach as one option. An alternative approach to a market-based system might involve regulatory directives that require emission performance standards for specific sources or the application of best available control technology. Congressional Research Service 3 Market-Based Greenhouse Gas Emission Reduction Legislation What Is a GHG Emissions Cap-and-Trade System? A GHG cap-and-trade system creates an overall limit, or cap, on GHG emissions from certain sources. Cap-and-trade programs can vary by the sources covered, which often include major emitting sectors (e.g., power plants and carbon-intensive industries), fuel producers and/or processors (e.g., coal mines or petroleum refineries), or some combination of both. The emissions cap is partitioned into emission allowances. Typically, in a GHG cap-and-trade system, one emission allowance represents the authority to emit one metric ton16 of carbon dioxide-equivalent (mtCO2e).17 The emissions cap creates a new commodity—the emission allowance. Policymakers may decide to distribute the emission allowances to covered entities at no cost (based on, for example, previous years’ emissions), sell the allowances (e.g., through an auction), or use some combination of these strategies. The distribution of emission allowances is typically a source of significant debate during a cap-and-trade program’s development, because the allowances have monetary value. At the end of each established compliance period (e.g., a calendar year or multiple years), covered sources submit emission allowances to an implementing agency to cover the number of tons emitted. If a source did not provide enough allowances to cover its emissions, the source would be subject to penalties. Covered sources would have a financial incentive to make reductions beyond what is required, because they could (1) sell or trade unused emission allowances to entities that face higher costs to reduce their facility emissions, (2) reduce the number of emission allowance they need to purchase, or (3) bank them, if allowed, to use in a future year. The use of emission offsets as a compliance option received attention during debate over cap-andtrade programs. An offset is a measurable reduction, avoidance, or sequestration of GHG emissions from a source not covered by an emission reduction program. Economic analyses of cap-and-trade proposals concluded that offset treatment (i.e., whether or not to allow their use and, if so, to what degree) would have a substantial impact on overall program cost. This is because some emissions and sources often not covered in cap-and-trade programs can reduce emissions at a lower cost per ton than many typically covered sources. However, the use of offsets generates considerable controversy, primarily over the concern that difficult-to-assess or fraudulent offsets could create uncertainty about the quantity of emission reductions.18 In addition, other mechanisms—such as allowance banking or borrowing—may be included to increase the flexibility of the program and, generally, reduce the costs. What Is a Carbon Tax or Emissions Fee? In a carbon tax or emissions fee program, policymakers attach a price to GHG emissions or the inputs that create them. A carbon tax/fee on emissions or emissions inputs—namely fossil fuels— would increase the relative price of the more carbon-intensive energy sources. This result is 16 A metric ton is approximately 2,205 pounds. A short ton equals 2,000 pounds. 17 This term of measure is used because GHGs vary by global warming potential (GWP). GWP is an index developed by the Intergovernmental Panel on Climate Change (IPCC) that allows comparisons of the heat-trapping ability of different gases over a period of time, typically 100 years. Consistent with international GHG reporting requirements, EPA’s most recent GHG inventory (with data from 2022) uses the GWP values presented in the IPCC’s 2013 Fifth Assessment Report. For example, based on these GWP values, a ton of methane is 28 times more potent than a ton of CO2 when averaged over a 100-year time frame. EPA’s inventory is available at EPA, “Inventory of U.S. Greenhouse Gas Emissions and Sinks,” https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks. 18 Both the RGGI and California cap-and-trade systems allow offsets as a compliance option (see footnote 4). Congressional Research Service 4 Market-Based Greenhouse Gas Emission Reduction Legislation expected to spur innovation in less carbon-intensive technologies and stimulate other behavior that may decrease emissions.19 Economic modeling indicates that a carbon tax/fee approach could achieve emission reductions, the level of which would depend on the scope and stringency (i.e., tax or fee level) of the program.20 For example, to address emissions from fossil fuel combustion—74% of total U.S. GHG emissions21—policymakers could apply a tax/fee to fossil fuels at approximately 3,000 entities, including coal mines, petroleum refineries, and entities required to report natural gas deliveries.22 A carbon tax/fee would generate a new revenue stream. The magnitude of the revenues would depend on the scope and rate of the tax or fee, the responsiveness of covered entities in reducing their potential emissions, and multiple other market factors. When designing a carbon tax/fee system, one of the more controversial and challenging questions for policymakers is how, to whom, and for what purpose the new tax or fee revenues could be applied. Congress would face the same issues that would be encountered during a debate over emission allowance value distribution in a cap-and-trade system. When deciding how to allocate the revenues, policymakers would encounter trade-offs among objectives. The central trade-offs involve minimizing economy-wide costs, lessening the costs borne by specific groups—particularly low-income households and displaced workers or communities—and supporting a range of specific policy objectives. A primary argument against a carbon tax/fee system (and a cap-and-trade program) is the concern about the economy-wide costs that a carbon price could impose. The potential costs would depend on a number of factors, including the magnitude, design, and use of revenues of the carbon tax or fee. Others who may oppose a carbon tax system express opposition to federal taxes in general or the possibility that the revenues would enable greater federal spending. Owners of coal resources, in particular, would likely lose asset values under a carbon tax system—as under a cap-and-trade system—to the degree that coal becomes less competitive under the costs of emission reductions. GHG Emission Reduction Legislation by Congress This section compares GHG emission reduction legislation from the 108th Congress to the 118th Congress by including a separate legislative table for each Congress.23 The tables compare the 19 This differs from a price system that applies to energy content, such as a tax based on British thermal units (Btu). In 1993, President Clinton proposed a deficit reduction package that included a tax based on energy content, measured in Btu. The goals of the 1993 Btu tax proposal were to promote energy conservation and raise revenue. At the time, the proposed tax would have generated a new revenue stream of about $30 billion per year. The proposal was met with strong opposition and was not enacted; Congress ultimately enacted an approximately five-cent-per-gallon increase in the motor fuels taxes. 20 See, for example, Alexander R. Barron et al., “Policy Insights from the EMF 32 Study on U.S. Carbon Tax Scenarios,” Climate Change Economics, vol. 9, no. 1 (2018). 21 EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2022, 2024. 22 See, for example, Table A-1 in CRS Report R45625, Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax or Emissions Fee: Considerations and Potential Impacts, by Jonathan L. Ramseur and Jane A. Leggett. 23 One GHG emission reduction bill was introduced in the 107th Congress. Sen. Jeffords introduced S. 556, which would have amended the Clean Air Act to reduce CO2 emissions from electric power plants to below 1990 levels. Congressional Research Service 5 Market-Based Greenhouse Gas Emission Reduction Legislation bills by their overall framework, scope, stringency, and selected design elements. Categories of comparison include the following: • • • • • • • General framework: the proposed program structure—emissions cap, emissions tax or fee, or some combination of both—and scope in terms of emissions covered (multiple GHG emissions or just CO2 emissions). Covered entities/materials: the industries, sectors, or materials that would be subject to the program. Emissions limit or target: the GHG or CO2 emissions target or cap for a particular year. Some targets/caps would apply only to covered sources; others apply to total U.S. GHG emissions. Distribution of allowance value or tax revenue: how emission allowance value or carbon tax or fee revenue would be distributed (if applicable). Offset and international allowance treatment: the degree to which offsets and international allowances could be used for compliance purposes and the types of offset activities that would qualify. Some proposals limit offsets by percentage of required reductions; others limit offsets as a percentage of allowance submissions. Mechanism to address carbon-intensive imports: a central concern with a U.S. GHG reduction program is that it could raise U.S. prices more than goods manufactured abroad, potentially creating a competitive disadvantage for some domestic businesses, particularly carbon-intensive, trade-exposed industries. Policymakers could address these potential impacts in several ways—for example, through border adjustments, tax rebates, or emission allowances provided at no cost to selected industrial sectors. For more information, see CRS Report R48247, Border Carbon Adjustments: Policy Considerations, Legislation, and Developments in the European Union, by Jonathan L. Ramseur, Kristen Hite, and Christopher A. Casey. Additional GHG reduction measures: other mechanisms that are designed to further reduce GHG emissions that are not covered in the central program. Congressional Research Service 6 Table 1. GHG Emission Reduction Proposals: 108th Congress Ordered Chronologically by Introduced Date Bill Number, Sponsor, Introduced Date, and Committee or Floor Action Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures General Framework Covered Entities/Materials Emissions Limit or Target S. 139 Lieberman Jan. 9, 2003 Discharged by unanimous consent by the Senate Committee on Environment and Public Works on Oct. 29, 2003 S.Amdt. 2028, which contained similar provisions, was not agreed to on Oct. 30, 2003 Cap-and-trade system for GHG emissions from multiple sectors Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e Cap of 5,896 mtCO2e for covered sources by 2010 (equivalent to 2000 levels), reduced by the level of emissions from non-covered sources; cap of 5,123 mtCO2e for covered sources by 2016 (equivalent to 1990 levels), reduced by the level of emissions from non-covered sources Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which may use allowance to help energy consumers with increased prices and provide transition assistance to dislocated workers and communities From 2010 through 2015, up to 15% of submitted allowances can come from domestic or international offsets; after 2015, 10% of submitted allowance can come from offsets No specific provision No specific provision S. 366 Jeffords Feb. 12, 2003 Cap-and-trade system for CO2 emissions from power plants; also addresses other air pollutants (mercury, Fossil-fuel-fired electric generating facilities with a capacity of greater than 15 megawatts Cap on electric power emissions of 2.05 billion metric tons in 2009 (equivalent to 1995 emissions) EPA allocates free allowances to the following: 60% to households to alleviate increased electricity prices No specific provision No specific provision No specific provision CRS-7 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target sulfur dioxide, nitrogen oxide) Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures 6% for worker transition assistance 20% for renewable energy and energy efficiency 10% to electricity generation facilities 1% for forest sequestration 2% for geologic sequestration S. 843 Carper Apr. 9, 2003 Cap-and-trade system for CO2 emissions from electricity sector; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) Fossil-fuel-fired electric generating facility that has a capacity of greater than 25 megawatts and generates electricity for sale Cap on electric power emissions of 2006 levels in 2009; lowered to 2001 levels in 2013 Allotted to covered sources at no cost based on previous year’s emission levels (minus a reserve set aside for new units) Determined by EPA No specific provision No specific provision H.R. 2042 Waxman May 8, 2003 Directs EPA to issue regulations to meet CO2 emissions goals; may include a market-based Fossil-fuel-fired electric generating facility that has a capacity of greater than 25 megawatts and generates electricity for sale 1990 CO2 levels for power plants by 2009 No specific provision No specific provision No specific provision No specific provision CRS-8 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e 1990 GHG levels for covered sources, reduced by the level of emissions from noncovered sources by 2020 Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures approach; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) H.R. 4067 Gilchrest Mar. 30, 2004 Cap-and-trade system for GHG emissions from multiple sectors Source: Prepared by CRS. CRS-9 Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which may use allowance to help energy consumers with increased prices and provide transition assistance to dislocated workers and communities, among other objectives Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from agricultural sequestration No specific provision No specific provision Table 2. GHG Emission Reduction Proposals: 109th Congress Ordered Chronologically by Introduced Date Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures S. 150 Jeffords Jan. 25, 2005 Cap-and-trade system for CO2 emissions from power plants; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) Fossil-fuel-fired electric generating facilities with a capacity of greater than 15 megawatts Cap on electric power emissions of 2.05 billion metric tons in 2010 In 2010, EPA allocates free allowance to the following: 60% to households to alleviate increased electricity prices 6% for worker transition assistance 20% for renewable energy and energy efficiency 10% to electricity generation facilities 1% for forest sequestration 2% for geologic sequestration No specific provision No specific provision No specific provision S. 342 McCain Feb. 10, 2005 Cap-and-trade system for GHG emissions from multiple sectors Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when Cap of 5,896 mtCO2e for covered sources by 2010 (equivalent to 2000 levels), Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at No specific provision No specific provision CRS-10 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Offset and International Allowance Treatment Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e reduced by the level of emissions from noncovered sources may use allowance to help energy consumers with increased prices and provide transition assistance to dislocated workers and communities, among other objectives least 1.5% must come from agricultural sequestration Covered Entities/Materials Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures H.R. 759 Gilchrest Feb. 10, 2005 Cap-and-trade system for GHG emissions from multiple sectors Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e Cap of 5,896 mtCO2e for covered sources by 2010 (equivalent to 2000 levels), reduced by the level of emissions from noncovered sources Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which may use allowance to help energy consumers with increased prices and provide transition assistance to dislocated workers and communities, among other objectives Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from agricultural sequestration No specific provision No specific provision H.R. 1451 Waxman Mar. 17, 2005 Directs EPA to issue regulations to meet CO2 emissions goals; may include a market-based approach; also addresses other air Fossil-fuel-fired electric generating facilities that have a capacity of greater than 25 megawatts 1990 CO2 levels for power plants by 2010 No specific provision No specific provision No specific provision No specific provision CRS-11 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures pollutants (mercury, sulfur dioxide, nitrogen oxide) and generate electricity for sale S. 730 Leahy Apr. 6, 2005 EPA determines the framework of the program; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) Fossil-fuel-fired electric generating facilities (no minimum threshold) Cap on electric power emissions of 2.05 billion metric tons in 2010 No specific provision No specific provision No specific provision No specific provision H.R. 1873 Bass Apr. 27, 2005 Cap-and-trade system for CO2 emissions from electricity sector; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) Fossil-fuel-fired electric generating facilities that have a capacity of greater than 25 megawatts and generate electricity for sale Cap on electric power emissions of 2006 levels in 2010; lowered to 2001 levels in 2015 Allotted to covered sources at no cost based on previous years emission levels (minus a reserve set aside for new units) Determined by EPA No specific provision No specific provision S. 1151 McCain May 26, 2005 Cap-and-trade system for GHG emissions from multiple sectors Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any Cap of 5,896 mtCO2e for covered sources by 2010 (equivalent to 2000 levels), reduced by the level of emissions Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which may use allowance to help energy consumers with increased prices Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from No specific provision No specific provision CRS-12 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Offset and International Allowance Treatment Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e from noncovered sources and provide transition assistance to dislocated workers and communities, among other objectives agricultural sequestration Covered Entities/Materials Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures H.R. 2828 Inslee June 9, 2005 Cap-and-trade system for GHG emissions from multiple sectors Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e Cap of 5,896 mtCO2e for covered sources by 2010 (equivalent to 2000 levels), reduced by the level of emissions from noncovered sources Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which may use allowance to help energy consumers with increased prices and provide transition assistance to dislocated workers and communities, among other objectives Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from agricultural sequestration No specific provision No specific provision H.R. 5049 Udall Mar. 29, 2006 Cap-and-trade system for GHG emissions from multiple sectors, with a price ceiling of $25 per ton of carbon, indexed to inflation Emissions from domestic and imported fossil fuels; emissions from agricultural, industrial, and manufacturing processes, excluding methane from animals Maintains existing emission levels; the number of allowances distributed based on emissions 20% to electric power, fossil fuel production, and energy intensive industries 15% to states for worker transition assistance Provides additional allowances for sequestration projects No specific provision No specific provision CRS-13 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue from years prior to enactment, without reductions in subsequent years 5% to states for energy assistance to lowincome households 25% to the Department of Energy to support energy research and development 10% to the Department of State to invest in low-emission and emission-free policies in developing countries 25% to the Department of the Treasury to be sold at auction with the proceeds deposited in the Treasury Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures S. 2724 Carper May 4, 2006 Cap-and-trade system for CO2 emissions from electricity sector; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) Fossil-fuel-fired electric generating facilities that have a capacity of greater than 25 megawatts and generate electricity for sale 2001 CO2 emission levels by 2015 Allotted to covered sources based on previous years emission levels Determined by EPA No specific provision No specific provision H.R. 5642 Waxman June 20, 2006 Cap-and-trade system for GHG Determined by EPA 1990 GHG levels for covered sources by 2020; 80% below 1990 Determined by the President based on plan submitted to Congress; sell via auction and distribute to noncovered sources to No specific provision No specific provision EPA to promulgate additional regulations to reduce GHG emissions, CRS-14 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action S. 3698 Jeffords July 20, 2006 CRS-15 General Framework Directs EPA to issue regulations to meet GHG emissions goals; may include a market-based approach Covered Entities/Materials Determined by EPA Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue levels by 2050 achieve specified goals: maximize public benefit, mitigate energy costs to consumers, provide worker transition assistance, among others 1990 GHG levels by 2020; 80% below1990 levels by 2050 Determined by EPA; allowances to covered entities; remaining allowances to households, communities, and other groups for various objectives Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures including performance standards, efficiency standards, technology requirements, among others; directs Department of Energy to promulgate renewable portfolio standards No specific provision No specific provision; allowances may be allotted to companies that experience disproportionate impacts from lower-carbon economy Directs EPA to issue CO2 emissions standards for vehicles and CO2 emissions standards for new power plants, create low-carbon electricity generation standards and trading program, promulgate Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures electricity efficiency standards, and establish renewable energy portfolio standards S. 4039 Kerry Sept. 29, 2006 Cap-and-trade system for GHG emissions Source: Prepared by CRS. CRS-16 Determined by EPA through a rulemaking process 1990 GHG levels for covered sources by 2020 Determined by the President; Congress may enact alternative plan within one year No specific provision No specific provision No specific provision Table 3. GHG Emission Reduction Proposals: 110th Congress Ordered Chronologically by Introduced Date Bill Number, Sponsor, Introduced Date, and Committee or Floor Action Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures General Framework Covered Entities/Materials S. 280 Lieberman Jan. 12, 2007 Cap-and-trade system for GHG emissions from multiple sectors Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e 1990 GHG levels for covered sources by 2020, reduced by the level of emissions from noncovered sources Determined by EPA Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from agricultural sequestration No specific provision No specific provision S. 309 Sanders Jan. 16, 2007 Determined by EPA, but must be a market-based program for GHG emissions Determined by EPA through a rulemaking process 1990 GHG levels for all sources by 2020 Determined by EPA No specific provision No specific provision GHG emission standards for vehicles, new electric power plants, and an energy efficiency performance standard S. 317 Feinstein Jan. 17, 2007 Cap-and-trade system for GHG emissions from electricity sector Fossil-fuel-fired electric generating facilities with a capacity of greater than 25 megawatts 5% below 2001 GHG levels for electric Initially provided to covered entities at no cost; percentage of allowances sold via auction gradually Up to 25% of required reductions may be achieved with EPA-approved No specific provision No specific provision CRS-17 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment generators by 2020 increases: by 2036, 100% sold via auction; activities funded by auction revenues include technology development and energy efficiency international credits Emissions Limit or Target Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures H.R. 620 Olver Jan. 22, 2007 Cap-and-trade system for GHG emissions from multiple sectors Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFCs, PFCs, or SF6 that, when used, will emit over 10,000 mtCO2e 1990 GHG levels for covered sources by 2020, reduced by the level of emissions from noncovered sources Determined by EPA Up to 15% of allowance submission can come from domestic and/or international offsets No specific provision No specific provision S. 485 Kerry Feb. 1, 2007 Cap-and-trade system for GHG emissions Determined by EPA through a rulemaking process 1990 GHG levels for covered sources by 2020 Determined by the President; Congress may enact alternative plan within one year No specific provision No specific provision No specific provision CRS-18 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials H.R. 1590 Waxman Mar. 20, 2007 Cap-and-trade system for GHG emissions Determined by EPA through a rulemaking process S. 1177 Carper Apr. 20, 2007 Cap-and-trade system for CO2 emissions from electricity sector; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) H.R. 2069 Stark Apr. 26, 2007 Tax starting at $10/short ton of carbon content in taxable fuels, which equates to approximately $2.70/tCO2 emissions The rate increases $10 per year (in nominal dollars) CRS-19 Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports 1990 GHG levels for all sources by 2020 Determined by the President; Congress may enact alternative plan within one year No specific provision No specific provision GHG emission standards for vehicles, energy efficiency standards, renewable portfolio standards Fossil-fuel-fired electric generating facilities that have a capacity of greater than 25 megawatts and generate electricity for sale 2001 CO2 emission levels by 2015 Allotted to covered sources based on previous years emission levels Determined by EPA No specific provision No specific provision Manufacturers, producers, or importers who sell a taxable fuel, which includes coal, petroleum and petroleum products, and natural gas Tax rate freeze if CO2 emissions do not exceed 20% of U.S. 1990 CO2 emissions by 2020 No specific provision NA No specific provision No specific provision Emissions Limit or Target Additional GHG Reduction Measures Bill Number, Sponsor, Introduced Date, and Committee or Floor Action Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures General Framework Covered Entities/Materials S. 1766 Bingaman July 11, 2007 Cap-and-trade system for GHG emissions from multiple sectors with allowance price ceiling: in 2012, $12/ton, increasing by 5% annually plus inflation Petroleum refineries, natural gas processing plants, and imports of petroleum products, coke, or natural gas; entities that consume more than 5,000 tons of coal a year; importers of HFCs, PFC, SF6, N2O, or products containing such compounds, and adipic acid and nitric acid plants, aluminum smelters, and facilities that emit HFCs as a byproduct of HCFC production 1990 GHG levels for covered sources by 2020 In 2012, 53% of allowances allocated to covered and certain industrial entities 23% allocated to states and for sequestration and early reduction activities 24% are auctioned to fund low-income assistance, carbon capture and storage, and adaptation activities The percentage auctioned increases steadily, reaching 53% by 2030 Unlimited use of domestic offsets; international offsets limited to 10% of a regulated entity’s emissions target International reserve allowances must accompany imports of any covered GHG intensive goods and primary products to the United States Least developed nations or those that contribute no more than 0.5% of global emissions are excluded No specific provision H.R. 3416 Larson Aug. 3, 2007 Tax on CO2 content on fossil fuels, starting at $15/short ton CO2 emissions, increasing by 10% annually plus inflation Manufacturers, producers, or importers of coal, petroleum, and natural gas No specific provision In first year (2008), approximately 76% would support a payroll tax rebate 16% would fund clean energy technology 8% would support affected industry transition assistance Allows for domestic offset projects (as prescribed by the Secretary of the Treasury) to be submitted as tax credits or tax refunds No specific provision other than direct assistance to affected industries (determined by the Secretaries of the Treasury and Labor) No specific provision CRS-20 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures (declining to zero by 2017) H.R. 4226 Gilchrest Nov. 15, 2007 Cap-and-trade system for GHG emissions from multiple sectors A Carbon Market Efficiency Board may implement costrelief measures Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; refiners or importers of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and importers or producers of HFCs, PFCs, or SF6 that, when used, will emit over 10,000 mtCO2e 85% of 2006 GHG levels from covered sources, reduced by the level of emissions from noncovered sources by 2020 Determined by EPA Up to 15% of allowance submission can come from domestic and/or international offsets The President may establish a program to require importers to pay the value of GHGs emitted during the production of goods or services imported into the United States from countries that have no comparable emission restrictions to those of the United States No specific provision S. 2191 Lieberman Oct. 18, 2007 Ordered reported by the Senate Committee on Environment Cap-and-trade system for GHG emissions from multiple sectors Producers or importers of petroleum or coalbased liquid or gaseous fuel that emits GHGs, or facilities that produce or import more than 10,000 mtCO2e of GHG chemicals annually; Emission cap for covered sources in 2020 is 4.924 billion tCO2e (19% below 2005 levels In 2012: 40% of allowances allocated to covered electric utilities, industrial facilities, and coops 9% allocated to states for conservation, extra Up to 15% of allowance requirement may be achieved through domestic offsets; international International reserve allowances must accompany imports of any covered GHGintensive goods and primary Low carbon fuel standard for transportation fuels CRS-21 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework and Public Works on Dec. 5, 2007 S. 3036 Boxer May 20, 2008 S.Amdt. 4825 (in the nature of substitute) failed a cloture motion on June 6, 2008 CRS-22 Cap-and-trade system for GHG emissions from multiple sectors A Carbon Market Efficiency Board may implement cost- Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports facilities that use more than 5,000 tons of coal annually; natural gas processing plants or importers (including liquid natural gas [LNG]); or facilities that emit more than 10,000 mtCO2e of HFCs annually as a byproduct of HFC production for covered sources) reductions, and other activities 11.5% for various sequestration activities 10% allocated for electricity consumer assistance 5% for early reductions 0.5% for tribal governments 18% (plus an early auction of 6%) auctioned to fund technology deployment, carbon capture and storage, low-income and rural assistance, and adaptation activities offsets can satisfy an additional 15% products to the United States Least developed nations or those that contribute no more than 0.5% of global emissions are excluded Producers or importers of petroleum- or coalbased liquid or gaseous fuel that emits GHGs, or facilities that produce or import more than 10,000 mtCO2e of GHG chemicals annually; facilities that use more Emission cap for covered sources in 2020 is 4.924 billion tCO2e (19% below 2005 levels for covered sources) A share of allowances are auctioned for deficit reduction increasing from 6.1% in 2012 to 15.99% in 2031 and thereafter The “remainder allowances” are Up to 15% of allowance requirement may be achieved through domestic offsets; international allowances can International reserve allowances must accompany imports of any covered GHGintensive goods and primary Additional GHG Reduction Measures Low carbon fuel standard for transportation fuels Bill Number, Sponsor, Introduced Date, and Committee or Floor Action CRS-23 General Framework Covered Entities/Materials relief measures if necessary than 5,000 tons of coal annually; natural gas processing plants or importers (including LNG); or facilities that emit more than 10,000 mtCO2e of HFCs annually as a byproduct of HFC production Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment distributed in 2012 (adjusted in future years) as follows: 38% of allowances to covered electric utilities, industrial facilities, and co-ops 10.5% to states for conservation, extra reductions, and other activities 7.5% for various sequestration activities 11% allocated for electricity and natural gas consumer assistance 5% for early reductions 0.5% for tribal governments 1% for methane reduction projects 21.5% (plus an early auction of 5%) auctioned to fund technology deployment, carbon capture and storage, satisfy an additional 15% Mechanism to Address CarbonIntensive Imports products to the United States Least developed nations or those that contribute no more than 0.5% of global emissions are excluded Additional GHG Reduction Measures Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures International reserve allowances must accompany imports of any covered GHG intensive goods and primary products to the United States Least developed nations or those that contribute no more than 0.5% of global emissions are excluded EPA to develop emission performance standards for certain non-covered entities that exceed 10,000 tCO2e per year Low-carbon fuel standard for transportation fuels Performance standard for certain coal-fired power plants to capture and geologically sequester not less than 85% of their CO2 emissions low income and rural assistance, and adaptation activities, as well as program management H.R. 6186 Markey June 4, 2008 CRS-24 Cap-and-trade system for GHG emissions from multiple sectors Electric power or industrial facilities that emit over 10,000 mtCO2e; producers or importers of petroleum or coal-based liquid products that, when combusted, will emit over 10,000 mtCO2e annually; local distribution companies that deliver natural gas that, when combusted, will emit over 10,000 tCO2e annually; producers or importers of HFCs, PFCs, SF6, or NF3 that, when used, will emit over 10,000 mtCO2e; sites at which CO2 is geologically sequestered on a commercial scale Emission cap for covered sources in 2020 is 4.983 billion tCO2e Between 2012 and 2019, 6% of allowances would be distributed to manufacturers of “trade-exposed primary goods” Remaining 94% auctioned (100% by 2020), with revenues distributed (in FY2010-FY2019) as follows: 58.5% to middleand low-income households as tax credits and/or rebates 12.5% for development and promotion of lowcarbon technology 12.5% for energy efficiency programs Up to 15% of allowance requirement may be achieved through domestic offsets; international offsets or allowances can satisfy an additional 15% Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures 4.5% for biological sequestration 1.5% for worker transition assistance 2% for domestic adaptation efforts 1.5% for protection of natural resources 1.5% for international forest protection 3.5% for international clean technology 2% for international adaptation efforts H.R. 6316 Doggett June 19, 2008 CRS-25 Cap-and-trade system for GHG emissions from multiple sectors A Carbon Market Efficiency Board may implement costrelief measures Producers or importers of petroleum- or coalbased liquid or gaseous fuel that emits GHGs, or facilities that produce or import more than 10,000 mtCO2e of GHG chemicals annually; facilities that use more than 5,000 tons of coal annually; natural gas processing plants or importers (including Emission cap for covered sources in 2020 is 6.087 billion mtCO2e In 2012, 5% of the allowances are allocated to electric generators; 10% are allocated to energy intensive industries Remaining allowances are auctioned with revenues used for the following: 54% for consumer assistance (66% of which goes toward Up to 10% of allowance requirement may be achieved through domestic offsets; international allowances can satisfy an additional 15% International reserve allowances must accompany imports of any covered GHGintensive goods and primary products to the United States Least developed nations or those that contribute no more than EPA to promulgate regulations that address emissions in uncovered sectors Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials LNG); or, facilities that emit more than 10,000 mtCO2e of HFCs annually as a byproduct of HFC production Source: Prepared by CRS. CRS-26 Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue providing health insurance coverage, the remainder for rebates and tax relief) 15% of revenues for deficit reduction 11.4% for international activities 7.5% for energy efficiency 7% for natural resource adaptation 7% for green energy research 4% for worker assistance 3% for forestry and agricultural activities 2.7% for states and tribes 2% for transportation alternatives 1% for early action 0.4% for education Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports 0.5% of global emissions are excluded Additional GHG Reduction Measures Table 4. GHG Emission Reduction Proposals: 111th Congress Ordered Chronologically by Introduced Date Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures H.R. 594 Stark Jan. 15, 2009 Tax on CO2 content in fossil fuels, starting at $10/short ton, increasing by $10 per year Manufacturers, producers, or importers who sell a taxable fuel, which includes coal, petroleum and petroleum products, and natural gas Tax freezes if CO2 emissions do not exceed 20% of U.S. 1990 CO2 emissions by 2020 No specific provision NA No specific provision No specific provision H.R. 1337 Larson Mar. 5, 2009 Tax on CO2 content in fossil fuels, starting at $15/short ton, increasing by $10 each year emissions target is not met Manufacturers, producers, or importers of coal, petroleum, and natural gas EPA is to establish (within five years after enactment) annual CO2 emission targets in order to reach goal of 80% below 2005 CO2 emissions by 2050 In first year: 76% would support a payroll tax rebate 16% would fund clean energy technology 8% would support affected industry transition assistance (declining to zero by 2017) Instructs Department of the Treasury (in consultation with Department of Energy) to submit a report of qualified offset projects but does not allow for projects to generate tax credits Department of the Treasury imposes a carbon equivalency fee on imported carbon-intensive goods, including steel, aluminum, and paper; fee based on emissions associated with production of carbon-intensive goods No specific provision H.R. 1666 Doggett Mar. 23, 2009 Cap-and-trade system for GHG emissions, with an oversight board to manage Not explicitly defined Target of 4.9 billion mtCO2e for covered Oversight board administers auctions to manage the allowance price path; precise use of No specific provision No specific provision No specific provision CRS-27 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials price path between 2012 and 2019 Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue entities by 2020 auction revenues is not specified Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures H.R. 1683 McDermott Mar. 24, 2009 Hybrid cap/tax system for GHG emissions: covered persons must purchase an emission permit from the Department of the Treasury when a “GHG emission substance” is produced or enters the United States; permits may not be sold or exchanged; price for emission permits based on achieving annual emission targets Coal producers, petroleum refineries; producers of other GHG emission substances (including natural gas, among others); importers of GHG emission substances 25% below 2005 GHG emissions by 2020 Establishes trust fund that would receive appropriations equal to revenue received by selling emission permits Precise use of the revenue is not specified No specific provision Department of the Treasury imposes a GHG emission permit equivalency fee on imported carbon-intensive goods, including steel, aluminum, and paper No specific provision H.R. 1862 Van Hollen Apr. 1, 2009 Cap-and-trade system for CO2 emissions from multiple sectors Person who makes the first sale in United States of coal, oil, natural gas, and any fossil-fuel-derived products used as a combustible fuel 25% below 2005 CO2 emissions by 2020 100% of allowances sold via auction; proceeds used to fund consumer dividend payments; each month, every person with a Social Security number No specific provision Department of the Treasury imposes a carbon equivalency fee on imported carbon-intensive goods, including No specific provision CRS-28 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment would receive an equal payment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures steel, aluminum, and paper H.R. 2380 Inglis May 13, 2009 Tax on fossil fuels, starting at $15/short ton of CO2 emissions, and increasing by approximately 6.5% each year, plus cost-ofliving adjustments Manufacturers, producers, or importers of coal, petroleum, and natural gas No specific provision Tax revenue used to offset a corresponding reduction in payroll tax rates (employee, employer, and selfemployed) No specific provision Imposes a tax on “imported taxable products” in relation to fossil fuels used or the CO2 emissions generated during the product’s manufacturing process No specific provision H.R. 2454 Waxman-Markey May 15, 2009 Reported by the Committee on Energy and Commerce on June 5, 2009 Passed the House on June 26, 2009 For more information, see CRS Report R40643, Greenhouse Gas Legislation: Summary and Analysis of H.R. 2454 as Passed by Cap-and-trade system for GHG emissions from multiple sectors Electricity generators, various fuel producers and importers, fluorinated gas producers and importers, geological sequestration sites, various industrial sources, and local distribution companies (LDCs) that deliver natural gas Covered entity coverage is phased in by category so that all of the above are under the cap in 2016 17% below 2005 emissions from covered sources by 2020 Emission allowance value distributed (as no-cost allowances or auction revenue) in the following manner in 2016: 30% (at minimum) to electricity LDCs; 0.5% for small electric LDCs; 9% to natural gas LDCs; 1.5% to states for home-heating oil consumers 15% directly to lowincome consumers 13.4% to energyintensive, tradeexposed industries; In 2016, approximately 27% of an entity’s allowance obligation can be satisfied with offsets; this percentage increases to 36% by 2030 Up to half of an entity’s offsets can come from domestic sources and up to half from international sources Unless otherwise determined by Energy-intensive, trade-exposed industries to receive allowances at no cost until phased out in mid2030s; and EPA to promulgate rules establishing an international reserve allowance system for any covered good of an eligible industrial sector Establishes a separate cap-and-trade program that controls HFC emissions Directs EPA to establish emission performance standards for select sources not covered by the emissions cap CRS-29 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target the House of Representatives, coordinated by Mark Holt and Gene Whitney S. 1733 Kerry-Boxer Sept. 30, 2009 Reported by the Committee on Environment and Public Works (a CRS-30 Cap-and-trade system for GHG emissions from multiple sectors Electricity generators, various fuel producers and importers, fluorinated gas producers and importers, geological sequestration sites, various industrial 20% below 2005 emissions from covered sources by 2020 Mechanism to Address CarbonIntensive Imports Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment up to 3.5% to merchant coal units; 2% to petroleum refineries plus 0.25% for small business refineries; up to 1.5% for certain long-term power contract operators 7.1% to states to support renewable energy and energy efficiency efforts 6% to promote technological advances 5% to reduce international deforestation 0.2% for deficit reduction 5% to further other objectives EPA, covered entities may use unlimited amount of international allowances from “qualifying programs” from a covered country Exemptions are provided for (1) least developed countries, (2) countries that emit less than 0.5% of global GHG emissions, and (3) countries meeting specific criteria Emission allowance value is distributed in the following manner in 2016: 25.8% (at minimum) to electricity LDCs; In 2016, approximately 35% of an entity’s allowance submission can comprise offsets; up to 75% of an entity’s offsets Trade-exposed, carbon-intensive industries to receive allowances at no cost; in addition, the bill states: Additional GHG Reduction Measures Establishes a separate cap-and-trade program that controls HFCs Bill Number, Sponsor, Introduced Date, and Committee or Floor Action “Manager’s Amendment” in the nature of substitute) on Nov. 5, 2009 CRS-31 General Framework Covered Entities/Materials sources, and LDCs that deliver natural gas Coverage is phased in by category so that all of the above are under the cap in 2016 Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment 0.94% for small electric LDCs 7.7% to natural gas LDCs 1.3% to states for home-heating oil consumers 12.9% directly to low-income consumers 12.1% to energyintensive, tradeexposed industries up to 3.0% to merchant coal units 0.64% to petroleum refineries plus 0.86% for small business refineries and 0.43% for medium refineries up to 1.3% for certain long-term power contract operators 5.97% to states to support renewable energy and energy efficiency efforts can come from domestic sources and up to 25% from international sources Unless otherwise determined by EPA, unlimited use of international allowances from “qualifying programs” Mechanism to Address CarbonIntensive Imports “It is the sense of the Senate that this Act will contain a trade title that will include a border measure that is consistent with our international obligations and designed to work in conjunction with provisions that allocate allowances to energy-intensive and tradeexposed industries” Additional GHG Reduction Measures Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures 5.6% to promote technological advances 1.92% for GHG reductions in the transportation sector 10.3% for deficit reduction 8% to further other objectives S. 2877 Cantwell Dec. 11, 2009 CRS-32 Hybrid cap/tax system for CO2 emissions: covered entities submit “carbon shares” for CO2 emissions associated with the use of the fossil fuels Trading of carbon shares is restricted to a dedicated exchange established by Treasury Price ceiling for carbon shares: initially at $21/tCO2 in Fossil fuel producers (e.g., mines, wells) and importers who introduce “fossil carbon” into the United States economy 20% below 2005 GHG levels from all sources by 2020 All carbon shares sold in auctions Subject to the appropriations process, 75% of the revenue would be distributed monthly in non-taxable dividends to all legally residing individuals in the United States Subject to the appropriations process, 25% could be used to support a myriad of policy objectives, including worker transition assistance, adaptation, Offsets are not allowed for compliance purposes Treasury may impose fees for the “production process carbon” associated with commodities imported into the United States No specific provision Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target 2012; if reached, additional shares made available, and this revenue would support mitigation from non-covered entities Kerry-Lieberman Discussion Draft May 12, 2010 (considered by many to be the primary legislative vehicle in the Senate at the time) CRS-33 Cap-and-trade system for GHG emissions from multiple sectors Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures technology development, energy efficiency, biological sequestration, and deficit reduction Electricity generators, various fuel producers and importers, fluorinated gas producers and importers, geological sequestration sites, various industrial sources, and LDCs that deliver natural gas Covered entity coverage is phased in by category so that all of the above are under the cap in 2016 17% below 2005 emissions from covered sources by 2020 Emission allowance value distributed in the following manner in 2016: 30% (at minimum) to electric LDCs; 9% for natural gas LDCs; 1.5% to states for homeheating oil and propane consumers; 12.3% directly to low-income consumers 15% to tradeexposed industries; up to 0.5% to merchant coal units; 3.75% to petroleum refineries; up to 4.5% to long-term power contract operators In 2016, approximately 35% of an entity’s allowance submission can comprise offsets; up to 75% of an entity’s offsets can come from domestic sources and up to 25% from international sources Unless otherwise determined by EPA, unlimited use of international allowances from “qualifying programs” Trade-exposed, carbon-intensive industries to receive allowances at no cost EPA to establish an international reserve allowance system for covered goods of an eligible industrial sector from a covered country Exemptions are provided for (1) least developed countries, (2) countries that emit less than 0.5% of global GHG emissions, and (3) countries Establishes a separate cap-and-trade program that controls HFC Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue 2% to states to support renewable energy and energy efficiency efforts 4% to promote technological advances 9.2% to support transportation infrastructure and efficiency 6.75% for deficit reduction 1.5% auctioned to help mitigate against high allowance prices Source: Prepared by CRS. CRS-34 Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports meeting the specific criteria Additional GHG Reduction Measures Table 5. GHG Emission Reduction Proposals: 112th Congress Ordered Chronologically by Introduced Date Bill Number, Sponsor, Introduced Date, and Committee or Floor Action Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures General Framework Covered Entities/Materials H.R. 3242 Stark Oct. 24, 2011 Tax on CO2 emissions from combustion of fossil fuels and other materials Rate starts at $10/short ton of CO2 emissions, increasing by $10 per year until emissions target reached Manufacturers, producers, or importers who sell coal, petroleum and petroleum products, natural gas, biomass, municipal solid waste, and any other organic material sold for energy use 80% reduction of CO2 emission levels in 1990 Tax revenue is distributed annually in pro rata payments to individuals with a taxpayer identification number No specific provision Border adjustment fees for comparable imported products No specific provision H.R. 6338 McDermott Aug. 2, 2012 Hybrid cap/tax approach on GHG emissions: covered entities purchase permits from the Department of the Treasury for expected emissions associated with combustion or use of covered material (e.g., fossil fuels) Coal producers, petroleum refineries, first seller of natural gas, producers and importers of GHG emission substances Average emissions between 2015 and 2019 equal to GHG emissions in 2005 by 2020 75% of the permit revenue is used to send monthly dividend payments to taxpayers 25% retained for deficit reduction No specific provision Unless an exporting nation has implemented equivalent measures, imports of carbon-intensive goods will be subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the costs domestic producers of No specific provision CRS-35 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Permits cannot be sold or traded Price floor and price ceiling (i.e., price collar), ranges between $6.25 and $18.75 in 2015 Source: Prepared by CRS. CRS-36 Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports comparable products incur due to the carbon price Exporters of carbon-intensive goods may receive a payment related to the increased costs of inputs (i.e., fossil fuels) subject to the fee Additional GHG Reduction Measures Table 6. GHG Emission Reduction Proposals: 113th Congress Ordered Chronologically by Introduced Date Bill Number, Sponsor, Introduced Date, and Committee or Floor Action S. 332 Sanders Feb. 14, 2013 CRS-37 General Framework Covered Entities/Materials Emissions Limit or Target Upstream tax/fee on fossil fuels based on their carbon content EPA would impose a fee on coal, petroleum, and natural gas produced or imported into the United States GHG emissions at 80% below 2005 levels by 2050 Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment 60% distributed to EPA to provide monthly rebates to legal residents 40% finances a trust fund that distributes the following amounts annually for 10 years: $7.5 billion to mitigate economic impacts of Energy Intensive Trade Exposed (EITE) industries (25% must be energy efficiency investments in EITE industries) $5 billion to support the Weatherization Assistance Program $1 billion for job training and transition assistance $2 billion for Advanced Research No specific provision Mechanism to Address CarbonIntensive Imports A carbon equivalency fee would apply to imports of carbonpollutionintensive goods Additional GHG Reduction Measures Directs EPA to submit report to Congress describing fugitive methane emissions related to leaks in natural gas infrastructure and recommending ways to address these leaks; directs EPA to enter agreement with the National Academy of Sciences to study GHG emissions from noncovered sources and make recommendations for reducing these emissions Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures Imports of carbon-intensive goods subject to a fee— Separate fee for nonCO2 GHG emissions at facilities that (1) are subject to GHG Projects AgencyEnergy Any remaining funds in the trust fund are applied to deficit reduction Revenues from the carbon equivalency fee on imports: 50% to EPA to distribute to state/local programs for adaptation, infrastructure improvement, and environmental protection 50% to the Department of Transportation to support state/local critical infrastructure and transportation projects that reduce vehicular traffic S. 2940 Whitehouse Nov. 19, 2014 CRS-38 Fee on fossil fuels based on their carbon Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported Fee continues until national GHG emissions are Fee revenue used to create the American Opportunity Fund, appropriations from No specific provisions Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials content and certain facilities Fee set at $42/mtCO2 emissions in 2015, increasing by 2% plus inflation each year fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of CO2 annually Source: Prepared by CRS. CRS-39 Emissions Limit or Target 80% below 2005 levels Distribution of Allowance Value or Tax/Fee Revenue the fund could support the following (percentages not specified): income assistance to low-income households facing disproportionate energy costs tax cut offsets Social Security benefit increases tuition assistanceinfrastructure improvements dividends to individuals and families transition assistance to workers in energy-intensive industries climate mitigation and adaptation national debt reduction Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports determined by the Secretary of the Treasury— that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price and (2) the comparable costs (e.g., GHG fees) imposed by the nation exporting the material Exporters of carbon-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee Additional GHG Reduction Measures reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 mtCO2e (not including CO2 emissions) Additional fee for methane emissions from fossil fuel extraction, distribution, and combustion Table 7. GHG Emission Reduction Proposals: 114th Congress Ordered Chronologically by Introduced Date Bill Number, Sponsor, Introduced Date, and Committee or Floor Action H.R. 972 McDermott Feb. 13, 2015 CRS-40 General Framework Covered Entities/Materials Hybrid cap/tax approach on GHG emissions: covered entities purchase permits from the Department of the Treasury for expected emissions associated with fossil fuel use Permits cannot be sold or traded Price floor and price ceiling, ranging between $18.75 and $31.25 in 2017, increasing each year Coal producers, petroleum refineries, first seller of natural gas, producers and importers of GHG emission substances Emissions Limit or Target Average emissions between 2016 and 2020 equal to 90% of GHG emissions in 2005 by 2020 Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment 100% of the permit revenue is used to send monthly dividend payments to taxpayers No specific provision Mechanism to Address CarbonIntensive Imports Unless an exporting nation has implemented equivalent measures, imports of carbon-intensive goods will be subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the costs domestic producers of comparable products incur due to the carbon price Exporters of carbon-intensive goods may receive a payment related to the increased costs of inputs (i.e., fossil fuels) Additional GHG Reduction Measures No specific provision Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures subject to the fee H.R. 2202 Delaney May 1, 2015 CRS-41 Imposes an excise tax on GHG emissions Tax starts at $30/mtCO2e, increasing each year by 4% plus inflation Tax applies to GHG emissions associated with fossil fuel combustion and GHG emissions from facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually Directs the Treasury Secretary to apply the tax at natural “chokepoints” in the supply chain in a way that maximizes the coverage of the tax on sources of emission while minimizing the burden on administration and compliance No specific provisions Distributes monthly energy refund payments to households based on the household’s gross income level; households with incomes up to 200% above poverty line are eligible, but higher-income households may receive scaled refunds under certain conditions; payments are based on estimates (calculated by the Energy Information Administration) of loss of purchasing power due to the carbon tax During the first 10 years of the tax, 2% of the revenues may be used to provide assistance to workers in the coal A tax refund is provided for GHG emissions that are captured and permanently sequestered The Secretary of the Treasury may impose an equivalency fee on the person importing a good that would have had an increased cost (imposed by the carbon tax) if the good were produced in the United States Exporters of carbon-intensive goods may receive compensation for losses related to the tax system No specific provision Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures industry displaced by the act Although not explicitly tied to the GHG tax revenue, the bill would gradually reduce the highest tax rate on corporate income from 35% to 28% S. 1548 Whitehouse June 10, 2015 CRS-42 Fee on fossil fuels based on their carbon content and on certain facilities for GHG emissions Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs Fee continues until national GHG emissions are 80% below 2005 levels The bill reduces the highest tax rate on corporate income from 35% to 29%, provides an annual tax credit for each individual, provides an equivalent benefit to individuals not eligible for the tax credit, provides up to $20 billion in annual costmitigation grants to states to be used to assist low-income and rural households with energy costs and support job training and worker assistance programs No specific provisions Imports of carbon-intensive goods subject to a fee— determined by the Secretary of the Treasury— that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price, and (2) the comparable costs (e.g., GHG fees) imposed by the nation Separate fee for fluorinated GHGs Separate fee for GHGs (other than CO2 and fluorinated gas emissions) set at $45/mtCO2e in 2016, increasing by 2% plus inflation each year Additional fee for methane emissions from fossil fuel extraction, distribution, and combustion (as determined by Secretary of the Treasury) Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee S. 2399 Sanders Dec. 10, 2015 CRS-43 Fee on fossil fuels based on carbon content Fee starts at $15 mtCO2e, increasing annually by $2 to $4, until reaching $73 in 2035; increasing thereafter by 5% plus inflation A carbon content fee is imposed on manufacturers, producers, or importers of a carbon polluting substance, which includes fossil fuels; carbon content determined by the Secretary of the Treasury Target of 5.8 billion metric tons in 2020, which is equivalent to 20% below 2005 CO2 emissions from fossil fuel combustion Distributes collected revenue from fees in equal quarterly rebates to each citizen or permanent resident; Secretary of the Treasury to issue regulations implementing rebate system; the rebates are phased out and eliminated for households earning over $100,000/year (with annual inflation adjustments); fees from imported materials would be No specific provisions A carbon equivalency fee would apply to imports of carbonpollutionintensive goods, as determined by the Secretary of the Treasury Establishes the Interagency Climate Council to monitor GHG emission progress and issue regulations to help meet reduction targets; creates a grant program to promote no-till farming practices and a nitrogen uptake pilot program Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures used to support other objectives, including energy efficiency H.R. 4283 McNerney Dec. 17, 2015 CRS-44 Tax on fossil fuels based on their carbon content “of the life cycle emissions” Tax starts in 2016 at $15 per metric ton of CO2 emissions; tax rate increases annually by $10/ton; if emission targets are met, tax ceases to apply for four years; tax reapplies if subsequent targets not met Tax imposed on producers, miners, or importers of fossil fuels Tax ceases if life-cycle emissions from fossil fuels reach 50% below 2005 levels (as determined by the Secretary of the Treasury in consultation with EPA) Tax revenue used to provide quarterly dividends to every person with a Social Security number No specific provisions Imports of goods containing or produced using fossil fuels subject to a carbon equivalency fee—determined by the Secretary of the Treasury—that is equal to the cost that U.S. producers of a comparable good incur as a result of the U.S. carbon tax; this fee expires if the exporting nation implements equivalent measures or if an international agreement requires equivalent measures No specific provisions Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Exporters of fossil fuels or materials that used fossil fuels during production or manufacture may receive a tax refund related to the increased costs of inputs (i.e., fossil fuels) subject to the carbon tax Source: Prepared by CRS. CRS-45 Additional GHG Reduction Measures Table 8. GHG Emission Reduction Proposals: 115th Congress Ordered Chronologically by Introduced Date Bill Number, Sponsor, Introduced Date, and Committee or Floor Action Emissions Limit or Target Mechanism to Address CarbonIntensive Imports General Framework Covered Entities/Materials H.R. 2014 Delaney Apr. 6, 2017 Imposes an excise tax on GHG emissions Tax starts at $30/metric ton of CO2e, increasing each year by 4% plus inflation Tax applies to GHG emissions associated with fossil fuel combustion and GHG emissions from persons who (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually Directs the Treasury Secretary to apply the tax at natural chokepoints in the supply chain in a way that maximizes the coverage of the tax on sources of emission while minimizing the burden on administration and compliance No specific provisions Distributes monthly energy refund payments to households, based on the household’s gross income level; households with incomes up to 200% above poverty line are eligible, but higher-income households may receive scaled refunds under certain conditions; payments are based on estimates (calculated by the Energy Information Administration) of loss of purchasing power due to the carbon tax During the first 10 years of the tax, 2% of the revenues may be used to provide assistance to workers in the coal industry displaced by the act Although not explicitly tied to the GHG tax revenue, the bill would gradually reduce the highest tax rate on corporate income from 35% to 28% A tax refund is provided for GHG emissions that are captured and permanently sequestered The Secretary of the Treasury may impose an equivalency fee on the person importing a good that would have had an increased cost (imposed by the carbon tax) if the good is produced in the United States Exporters of carbon-intensive goods may receive compensation for losses related to the tax system S. 1639 Whitehouse July 26, 2017 Fee on fossil fuels based on their carbon content and certain Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, Fee continues until national GHG emissions The bill reduces the highest tax rate on corporate income from 35% to 29%, provides an annual tax credit for each individual, provides an equivalent benefit to individuals No specific provisions Imports of carbonintensive goods subject to a fee— determined by the Secretary of the CRS-46 Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Additional GHG Reduction Measures Separate fee for fluorinated GHGs Bill Number, Sponsor, Introduced Date, and Committee or Floor Action H.R. 3420 Blumenauer July 26, 2017 CRS-47 Emissions Limit or Target General Framework Covered Entities/Materials Distribution of Allowance Value or Tax/Fee Revenue facilities for GHG emissions Fee set at $49/ton CO2 emissions in 2018, increasing by 2% plus inflation each year and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually are 80% below 2005 levels not eligible for the tax credit, provides up to $20 billion in annual cost-mitigation grants to states to be used to assist low-income and rural households with energy costs and support job training and worker assistance programs Fee on fossil fuels based on their carbon content and certain Fee applies to coal at mines, petroleum at refineries, natural gas at processors, Fee continues until national GHG emissions The bill reduces the highest tax rate on corporate income from 35% to 29%, provides an annual tax credit for each individual, provides Offset and International Allowance Treatment No specific provisions Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price, and (2) the comparable costs (e.g., GHG fees) imposed by the nation exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee Fee for facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 mtCO2e emissions (other than CO2 or fluorinated GHGs) Additional fee for GHG emissions resulting from venting, flaring, and leaking across the coal, natural gas, and petroleum supply chains (as determined by Secretary of the Treasury) Imports of carbonintensive goods subject to a fee— determined by the Separate fee for fluorinated GHGs Bill Number, Sponsor, Introduced Date, and Committee or Floor Action H.R. 4209 Larson Nov. 1, 2017 CRS-48 Emissions Limit or Target General Framework Covered Entities/Materials Distribution of Allowance Value or Tax/Fee Revenue facilities for GHG emissions Fee set at $49/ton CO2 emissions in 2018, increasing by 2% plus inflation each year imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually are 80% below 2005 levels an equivalent benefit to individuals not eligible for the tax credit, provides up to $20 billion in annual cost-mitigation grants to states to be used to assist low-income and rural households with energy costs and support job training and worker assistance programs Tax on fossil fuels based on their carbon content Tax set at $49/mtCO2 in Tax applies to manufacturers, producers, or importers of coal, petroleum, and natural gas No specific provision Establishes a trust fund that would receive appropriations equal to tax revenue received in the Treasury; the trust fund would provide annual funding for the following infrastructure programs: Offset and International Allowance Treatment No specific provisions Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures Secretary of the Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price and (2) the comparable costs (e.g., GHG fees) imposed by the nation exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee Fee for facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 mtCO2e (other than CO2 or fluorinated GHGs) Additional fee for GHG emissions resulting from venting, flaring, and leaking across the coal, natural gas, and petroleum supply chains (as determined by Secretary of the Treasury) The Secretary of the Treasury shall impose a fee on imports of carbonintensive goods; the fee will be No specific provisions Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target 2019, increasing by 2% plus inflation each year S. 2352 Van Hollen Jan. 29, 2018 CRS-49 Cap-and-trade system for CO2 emissions from fossil fuel combustion Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment $50 billion (plus the Highway Trust Fund shortfall) for highway (80%) and mass transit (20%); $5 billion for the Transportation Investments Generating Economic Recovery program; $3 billion for aviation; $5 billion for passenger rail; $6 billion for harbors, waterways, flood protection, and dams; $6 billion for wastewater and drinking water; and $3 billion for broadband In addition, the trust fund provides $5 billion annually for worker transition assistance in the fossil fuel industries; and 12.5% for an energy refund program that would provide monthly payments to households with incomes up to 150% of poverty line Any remaining revenues supports a consumer tax rebate for households with incomes up to 350% of the poverty line Covered materials include crude oil, coal, natural gas, and products derived from 2020 limit: permits sold equal to 20% below 2005 Auction revenue distributed via quarterly dividend payments to all persons with a valid Social Security number Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures equivalent to the cost that domestic producers incur due to the carbon tax; this fee expires if the exporting nation implements equivalent measures or if an international agreement requires equivalent measures No specific provisions Unless an exporting nation has implemented equivalent measures, imports EPA directed to promulgate regulations to address other GHG Bill Number, Sponsor, Introduced Date, and Committee or Floor Action H.R. 4889 Beyer Jan. 29, 2018 CRS-50 Emissions Limit or Target General Framework Covered Entities/Materials Permits sold through quarterly auctions by the Department of the Treasury Auction revenue distributed to individuals, often described as a “cap and dividend” approach A permit reserve and borrowed permits from future years may be used to help stabilize auction prices these materials used for combustion Covered entities include petroleum refineries and importers, coal mines and importers, and natural gas deliverers (as reported on Energy Information Administration Form 176) and some natural gas processors 2025 limit: permits sold equal to 30% below 2005 U.S. CO2 emissions 2030 limit: permits sold equal to 40% below 2005 U.S. CO2 emissions 2040 limit: permits sold equal to 60% below 2005 U.S. CO2 emissions Cap-and-trade system for CO2 emissions from fossil fuel combustion Permits sold through quarterly auctions by the Department of the Treasury Covered materials include crude oil, coal, natural gas, and products derived from these materials used for combustion Covered entities include petroleum refineries and importers, coal mines and importers, and natural gas deliverers 2020 target: reduce U.S. CO2 emissions to 20% below 2005 levels 2030 target: 40% below 2005 levels Distribution of Allowance Value or Tax/Fee Revenue Auction revenue distributed via quarterly dividend payments to all persons with a valid Social Security number Offset and International Allowance Treatment No specific provisions Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures of carbonintensive goods will be subject to a fee—determined by the Secretary of the Treasury— that is equivalent to the costs domestic producers of comparable products incur due to the carbon price Exporters of carbon-intensive goods may receive compensation for losses related to the permit system emissions that are not covered by the permit program; emissions “directly attributable to the production of animals for food or food products” are excluded Unless an exporting nation has implemented equivalent measures, imports of carbonintensive goods will be subject to a fee—determined by the Secretary of the Treasury— that is equivalent EPA directed to promulgate regulations to address other GHG emissions that are not covered by the permit program; emissions “directly Bill Number, Sponsor, Introduced Date, and Committee or Floor Action S. 2368 Whitehouse Feb. 5, 2018 CRS-51 General Framework Covered Entities/Materials Auction revenue distributed to individuals, often described as a “cap and dividend” approach A permit reserve and borrowed permits from future years may be used to help stabilize auction prices (as reported on Energy Information Administration Form 176) and some natural gas processors Fee on fossil fuels based on their carbon content and certain facilities for GHG emissions Fee set at $50/ton CO2 emissions in 2019, increasing by 2% plus inflation each year Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually Emissions Limit or Target Fee continues until national GHG emissions are 80% below 2005 levels Distribution of Allowance Value or Tax/Fee Revenue The bill provides an annual tax credit for each individual, provides an equivalent benefit to individuals not eligible for the tax credit, provides up to $10 billion in annual cost-mitigation grants to states to be used to assist low-income and rural households with energy costs and support job training and worker assistance programs; this amount increases annually Offset and International Allowance Treatment No specific provisions Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures to the costs domestic producers of comparable products incur due to the carbon price Exporters of carbon-intensive goods may receive compensation for losses related to the permit system attributable to the production of animals for food or food products” are excluded Imports of carbonintensive goods subject to a fee— determined by the Secretary of the Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price and (2) the comparable costs (e.g., GHG fees) imposed by the Separate fee for fluorinated GHGs Separate fee for GHGs (other than CO2 and fluorinated gas emissions) at facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 Bill Number, Sponsor, Introduced Date, and Committee or Floor Action H.R. 4926 Blumenauer Feb. 5, 2018 CRS-52 General Framework Fee on fossil fuels based on their carbon content and certain facilities for GHG emissions Fee set at $50/ton CO2 emissions in 2019, increasing by 2% plus inflation each year Covered Entities/Materials Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually Emissions Limit or Target Fee continues until national GHG emissions are 80% below 2005 levels Distribution of Allowance Value or Tax/Fee Revenue The bill provides an annual tax credit for each individual, provides an equivalent benefit to individuals not eligible for the tax credit, provides up to $10 billion in annual cost-mitigation grants to states to be used to assist low-income and rural households with energy costs and support job training and worker assistance programs; this amount increases annually Offset and International Allowance Treatment No specific provisions Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures nation exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee mtCO2e emissions Additional fee for GHG emissions resulting from venting, flaring, and leaking across the coal, natural gas, and petroleum supply chains (as determined by Secretary of the Treasury) Imports of carbonintensive goods subject to a fee— determined by the Secretary of the Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price and (2) the comparable costs (e.g., GHG fees) imposed by the Separate fee for fluorinated GHGs Separate fee for GHGs (other than CO2 and fluorinated gas emissions) at facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than Bill Number, Sponsor, Introduced Date, and Committee or Floor Action H.R. 6463 Curbelo July 23, 2018 CRS-53 General Framework Tax on fossil fuels based on their carbon content and on emissions from specific facilities and sources Tax starts at $24/metric ton of CO2e, increasing by 2% plus inflation each year Covered Entities/Materials Tax applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, facilities in specified industrial sectors that emit more than 25,000 metric tons of CO2e annually, facilities that manufacture or import specified products, and facilities that combust biomass with emissions above 25,000 metric tons of CO2e Emissions Limit or Target No specific provision Authorizes the Secretary of the Treasury to increase the tax rate if annual, cumulative emission reduction targets are not met (e.g., 5,177 million metric tons CO2e in 2020) Distribution of Allowance Value or Tax/Fee Revenue Establishes a trust fund that receives appropriations equal to 75% of tax revenue deposited in the Treasury; from this amount, the trust fund provides annual funding for the following objectives (“as provided in appropriations acts”) between FY2021 and FY2030: 70% to the Federal Highway Trust Fund; 10% to the states as grants to lowincome households; 5.0% for frequent and chronic coastal flooding mitigation and adaptation infrastructure projects; Offset and International Allowance Treatment No specific provisions Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures nation exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee 25,000 mtCO2e Additional fee for GHG emissions resulting from venting, flaring, and leaking across the coal, natural gas, and petroleum supply chains (as determined by Secretary of the Treasury) Imports of carbonintensive goods subject to a border tax— determined by the Secretary of the Treasury—that is equivalent to the costs in comparable domestic manufactured goods (associated with the carbon tax) Exporters of energy-intensive Establishes a conditional moratorium on Clean Air Act GHG regulations for stationary emissions sources (with some exceptions) Creates a National Climate Commission to set five-year emission Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment 3.0% for displaced energy workers; 2.7% for various energy-related research and development objectives (e.g., carbon capture and storage); 3.0% to support agricultural GHG sequestration projects; 2.5% for the Airport and Airway Trust Fund; 2.0% for the Abandoned Mine Reclamation Fund; 1.5% for the Department of Energy weatherization program; 0.1% for the Leaking Underground Storage Tank trust fund; 0.1% for the Reforestation Trust Fund; 0.1% to decrease the environmental impact of renewable energy activities pursuant to Section 931 of the Energy Policy Act of 2005 H.R. 6928 McNerney Sept. 27, 2018 CRS-54 Tax on fossil fuels based on their carbon content “of the life cycle emissions” Tax starts in 2020 at $25 per Tax imposed on producers, miners, or importers of fossil fuels Tax ceases if emission targets are met; targets based on lifecycle emission reductions (as determined by EPA) from fossil Establishes a trust fund that receives appropriations equal to carbon tax revenues received in the Treasury Subject to the appropriations process, tax revenue used to offset a corresponding reduction in individual income tax rates starting No specific provisions Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures goods may receive a tax refund related to the increased costs of inputs (i.e., fossil fuels) subject to the tax reduction goals between 2025 and 2050 and assess the effectiveness of federal policies in meeting these goals Imports of goods containing or produced using fossil fuels subject to a carbon equivalency fee— determined by the Secretary of the No specific provisions Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework metric ton of CO2 emissions; tax rate increases annually by $10/ton; if emission targets are met, tax ceases to apply for four years; tax reapplies if subsequent targets not met CRS-55 Covered Entities/Materials Emissions Limit or Target fuels below 2005 levels: 2025: 30% 2030: 40% 2035: 50% 2040: 70% 2050: 80% Distribution of Allowance Value or Tax/Fee Revenue in 2019; remaining revenues would be allocated as follows: 80% used to provide quarterly dividends to every person with a Social Security number 20% used to support a range of objectives, including: -worker transition assistance -rural energy assistance -technology-neutral research and development -electric grid innovation -infrastructure resilience -energy efficiency and conservation Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Treasury—that is equal to the cost that U.S. producers of a comparable good incur as a result of the U.S. carbon tax; this fee expires if the exporting nation implements equivalent measures or if an international agreement requires equivalent measures Exporters of fossil fuels or materials that used fossil fuels during production or manufacture may receive a tax refund related to the increased costs of inputs (i.e., fossil fuels) subject to the carbon tax Additional GHG Reduction Measures Bill Number, Sponsor, Introduced Date, and Committee or Floor Action Emissions Limit or Target Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures General Framework Covered Entities/Materials H.R. 7173 Deutch Nov. 27, 2018 Fee on fossil fuels based on their GHG content Fee set at $15/mtCO2e emissions in 2019, increasing by $10 each year If emission reduction targets are not met, fee increases by $15; if targets met, fee does not increase Provides a rebate for fuels used on a farm Covered entities include petroleum refineries and importers, coal mines and importers, natural gas deliverers, and some natural gas processors Emission reduction targets apply to fossil fuel combustion emissions; starting in 2022, annual reductions of 5% of 2015 levels (253 million mtCO2e) between 2022 and 2029; less stringent reductions in subsequent years Establishes a trust fund that receives appropriations equal to emission fee revenues received in the Treasury; monies in the trust fund are available (after administrative expenses) to provide monthly payments to eligible individuals (i.e., persons with a Social Security number or taxpayer identification number); adults get one share and children receive a half-share No specific provisions Imports of carbonintensive products subject to a fee— determined by the Secretary of the Treasury—that is equivalent to the excess of (1) GHG emissions from production multiplied by the relevant U.S. emissions fee over (2) the total foreign product cost of carbon; Exporters of carbon-intensive products (and covered fuels) may receive a refund under an analogous formula Separate fee for fluorinated GHGs set at 10% of fee for fossil fuel emissions Suspends enforcement of certain Clean Air Act GHG regulations; if EPA determines (in 2030 and every five years thereafter) emission targets are not met, the enforcement suspension would cease and EPA must promulgate regulations to reduce emissions from covered fuels S. 3791 Coons Dec. 19, 2018 Fee on fossil fuels based on their GHG content Covered entities include petroleum refineries and importers, coal mines Emission reduction targets apply to fossil fuel Establishes a trust fund that receives appropriations equal to emission fee revenues received in the Treasury; monies in the trust No specific provisions Imports of carbonintensive products subject to a fee— determined by the Separate fee for fluorinated GHGs set at 10% of fee for CRS-56 Distribution of Allowance Value or Tax/Fee Revenue Offset and International Allowance Treatment Bill Number, Sponsor, Introduced Date, and Committee or Floor Action General Framework Covered Entities/Materials Fee set at $15/mtCO2e emissions in 2019, increasing by $10 each year If emission reduction targets are not met, fee increases by $15; if targets met, fee does not increase Provides a rebate for fuels used on a farm and importers, natural gas deliverers, and some natural gas processors Source: Prepared by CRS. CRS-57 Emissions Limit or Target combustion emissions; starting in 2022, annual reductions of 5% of 2015 levels (253 million mtCO2e) between 2022 and 2029; this equates to a 50% reduction in 2030 compared to 2005 levels; less stringent reductions in subsequent years Distribution of Allowance Value or Tax/Fee Revenue fund are available (after administrative expenses) to provide monthly payments to eligible individuals (i.e., persons with a Social Security number or taxpayer identification number); adults get one share and children receive a half-share Offset and International Allowance Treatment Mechanism to Address CarbonIntensive Imports Additional GHG Reduction Measures Secretary of the Treasury—that is equivalent to the excess of(1) GHG emissions from production multiplied by the relevant U.S. emissions fee over (2) the total foreign product cost; Exporters of carbon-intensive products (and covered fuels) may receive a refund under an analogous formula fossil fuel emissions Directs EPA to evaluate effectiveness of fee program in meeting emission reduction targets; if targets are met, EPA may review existing regulations on fossil fuel combustion and fluorinated GHG emissions Table 9. GHG Emission Reduction Proposals: 116th Congress Ordered Chronologically by Introduced Date Bill Number, Sponsor, Introduced Date, and Committee or Floor Action H.R. 763 Deutch Jan. 24, 2019 CRS-58 General Framework Covered Entities/Materials Emissions Limit or Target Distribution of Allowance Value or Tax/Fee Revenue Fee on fossil fuels based on their GHG content Fee set at $15/mtCO2e emissions in 2019, increasing by $10 each year plus inflation If emission reduction targets are not met, fee increases by $15 plus inflation; if targets met, fee does not increase Provides a rebate for fuels used on a farm and for fuels or their derivatives used by U.S. Armed Forces Co [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/crs%3AR45472. Public record. Not legal advice.