Climate Change Legislation in the 108th Congress

Order Code RL32055

CRS Report for Congress

Received through the CRS Web

Climate Change Legislation in the 108th Congress

Updated January 6, 2005

name redacted

Specialist in Energy Policy

Resources, Science, and Industry Division

name redacted

Environmental Policy Analyst

Resources, Science, and Industry Division

Congressional Research Service ˜ The Library of Congress

Climate Change Legislation in the 108th Congress

Summary

Climate change and greenhouse gas (GHG) emissions were an issue in the 108th

Congress, as they were over the preceding decade. Bills directly addressing climate

change issues ranged from those focused primarily on climate change research (H.R.

1578 and S. 1164) to comprehensive emissions cap and trading programs for all six

greenhouse gases (S. 139 and H.R. 4067). Additional bills focused on GHG

reporting and registries (H.R. 6 (Senate-passed), H.R. 1245, S. 17, and S. 194), or on

power plant emissions of carbon dioxide (H.R. 2042, S. 139, S. 366, and S. 843).

These climate change bills differed within and across categories. Among the

climate change research bills, there were common and divergent research focuses.

For example, a few bills, including S. 139 and S. 1164, would have directed research

on historical instances of climate change to develop climate change models.

Additional bills focused on research to examine vulnerabilities to climate change in

the United States, particularly with respect to human health, environmental, and

economic outcomes. Furthermore, some bills would have promoted research on

political and technological options to reduce GHG emissions.

Among the six bills with GHG reporting and registry requirements, there were

also differences. The primary difference between reporting bills was how each

determined which entities must report. H.R. 6 (Senate version), H.R. 1245, H.R.

4067, and S. 139 would have established GHG emission thresholds, usually around

10,000 metric tons of carbon dioxide (or equivalent) per year, above which an entity

must submit records of its GHG emissions. However, H.R. 6 and H.R. 1245

excluded farms from the reporting requirement. The remaining bills, S. 17 and S.

194, would have tasked the Administrator of the Environmental Protection Agency

(EPA) with establishing the threshold requirement.

There were also similarities and differences between cap and trade bills.

Specifically, H.R. 2024, S. 366, and S. 843 would have focused on fossil fuel-fired

electric generating facilities, while S. 139 and H.R. 4067 would have covered a

broader array of sources. Furthermore, H.R. 2024, S. 366, and S. 843 would have

capped one GHG — carbon dioxide — while S. 139 and H.R. 4067 would have

capped all six GHGs.

This report briefly discusses basic concepts on which these bills were based, and

compares major provisions of the bills in each of the following categories: climate

change research, GHG reporting and registries, and cap and trade programs. This

report will not be updated.

Contents

Climate Change Research Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

GHG Reporting and Registry Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

GHG Emission-Reduction Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Carbon Dioxide Reduction Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Comprehensive GHG Emissions Reductions . . . . . . . . . . . . . . . . . . . . 9

List of Tables

Table 1. Comparison of Climate Change Research Bills . . . . . . . . . . . . . . . . . . . . 3

Table 2. Comparison of GHG Reporting and Registry Bills . . . . . . . . . . . . . . . . . 7

Table 3. GHG Cap and Trade Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Appendix 1. Climate Change Bills in the 108th Congress . . . . . . . . . . . . . . . . . . 14

Appendix 2. Key Provisions of Climate Change Legislation in the

108th Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Climate Change Legislation

in the 108th Congress

Since 1992, when the United States ratified the United Nations’ Framework

Convention on Climate Change (UNFCCC), a number of voluntary and regulatory

actions have been proposed or undertaken in the United States to decrease

greenhouse gas emissions. Most of these policies have been established primarily to

achieve energy or environmental goals, while also having the effect of reducing GHG

emissions.1

In the 108th Congress, numerous bills were introduced that directly or indirectly

addressed climate change. Most bills focused on energy efficiency, energy

conservation, or non-fossil fuels. However, the focus of this report is on bills that

directly addressed climate change, not on bills that would have had indirect or

ancillary impacts on greenhouse gas emissions. This report describes and compares

climate-related bills, which fall into three major categories: (1) those that would have

established climate change research programs to further examine the origins and

effects of climate change (H.R. 6,2 H.R. 1578, H.R. 4067, S. 17, S. 139, and S.

1164); (2) those that would have established GHG monitoring systems as a basis for

research or for any future reduction program (H.R. 6, H.R. 1245, H.R. 4067, S. 17,

S. 139, and S. 194); and (3) those that would have established market-based

programs to directly limit emissions of CO2, the primary greenhouse gas (H.R. 2024,

S. 139, H.R. 4067, S. 366, and S. 843). The major provisions of these bills are

categorized in Appendix 1 and summarized in Appendix 2. While the body of this

report describes what each bill would have done, none of these bills became law in

the 108th Congress. If Members wish to enact similar legislation in the 109th

Congress (or later), new bills must be introduced.

Climate Change Research Bills

Global climate change is a complex issue. While most scientists agree that the

climate is changing in response to greenhouse gas emissions, uncertainties

concerning the causes and the effects of climate change remain and are the subject

1

Under the United Nations Framework Convention on Climate Change (UNFCCC),

greenhouse gases include carbon dioxide (CO2, the most ubiquitous and primary greenhouse

gas), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons

(PFCs), and sulfur hexaflurane (SF6). Some other greenhouse gases are controlled under the

Montreal Protocol on Substances That Deplete the Ozone Layer.

2

For the purposes of this report, H.R. 6 always refers to the Senate-passed bill. The

conference report on H.R. 6 (H.Rept. 108-375) did not contain provisions on climate change.

The conference report was approved by the House on November 18, 2003. On November

21, a cloture motion on the conference report failed in the Senate.

CRS-2

of scientific research.3 Federally, much of this research is conducted through the U.S.

Global Change Research Program.4

Research Bills. Two bills in the 108th Congress, S. 1164 (Collins) and H.R.

1578 (M. Udall), focused primarily on climate change research.5 As shown in Table

1, these bills would have established research programs with different focuses. S.

1164 called for the development and testing of climate change models based on

historic climatic changes. H.R. 1578 focused on using historic trends to assess the

nation’s vulnerabilities to climatic change and to assess climate change policy.

While S. 1164 did not have any substantial non-research provisions, H.R. 1578

would also have established an interagency committee to develop vulnerability

assessments, facilitate interagency cooperation, and provide representation to

international meetings. This committee would have facilitated the establishment of

the United States Global Change Research Plan. The plan would have established

goals and priorities and would have identified options to achieve those aims.

Research Provisions in Broader Bills. In addition to the research bills

H.R. 1578 and S. 1164, four bills (H.R. 6, H.R. 4067, S. 17, and S. 139) included

climate change research provisions as part of a broader climate change bill.

Specifically, research in H.R. 6 would have focused on climate change mitigation

technology, climate change adaptation, and resolving scientific and economic

uncertainty. The research provisions in S. 17 focused on a national assessment of

climate change impacts and a review of methods to address climate change.

Research under S. 139 would have focused on technology transfer barriers, the

impact of the Kyoto Protocol on the United States, climate change impacts, and

possible methods to reduce GHG emissions. The research provisions of H.R. 4067

were similar to those under S. 139, except that H.R. 4067 did not address technology

transfer or the impacts to the Kyoto Protocol, and added a section on agricultural

research.

3

For more information on the science and policy of Global Climate Change see CRS Issue

Brief IB89005, Global Climate Change.

4

One such document is U.S. Global Change Research Program, Climate Change Impacts

on the United States: The Potential Consequences of Climate Variability and Change.

(Washington, DC, 2000).

Available at [http://www.usgcrp.gov/usgcrp/Library/

nationalassessment/overview.htm], visited August 28, 2003.

5

The research provisions of H.R. 6 (Senate-passed), S. 17, S. 139, and S. 843 are described

in later sections since these bills had other major focuses. This report does not include bills

with other focuses that also had research components related to climate change (particularly

sequestration, renewable energy, and energy efficiency), including H.R. 238, H.R. 984, H.R.

1213, H.R. 1395, H.R. 1645, H.R. 1777, H.R. 190, and H.R. 2088.

CRS-3

Table 1. Comparison of Climate Change Research Bills

Research

Focus

H.R. 1578 (M.

Udall)

H.R. 4067

(Gilchrest)

H.R. 6 (Senatepassed)

S. 17 (Daschle)

S. 139

(Lieberman)

S. 1164 (Collins)

Global

Measurements

Studies of historic

changes

Information on

economic and

demographic

trends that affect

vulnerability to

climate change

Interaction of

physical,

chemical,

biological and

social processes

related to global

change

Initiatives to

determine, and

then meet, the

information needs

of decisionmakers.

and welfare, and

human social and

economic systems

Create indicators to

understand historic

climate change

Improve

understanding of

thresholds and

nonlinearities of

geophysical

systems related to

climate change

Develop and test

climate change

models

Climate change

standards and

processes

Vulnerability and

adaptation to

climate change

Technology transfer

barriers

Agricultural effects

of climate

change and

opportunities

for carbon

sequestration

Modeling and

assessment of

climate change

effects on

economic and

social systems.

Understanding

response of human

(social and

economic) and

natural ecosystems

to climate change.

Understanding the

availability,

benefits and costs

of policy and

technology options

to mitigate climate

change risks.

Carbon sequestration

GHG emissions from

federal facilities

The economic,

public health, and

environmental

impacts of global

warming and

climate change on

the United States.

Funding and

effectiveness of

programs

established to

reduce

greenhouse gas

emissions.

Create indicators to

understand historic

climate change

Improve

understanding of

thresholds and

nonlinearities of

geophysical

systems related to

climate change

Develop and test

climate change

models

Climate change

standards and

processes

Vulnerability and

adaptation to

climate change

Technology transfer

barriers

Create indicators to

understand historic

climate change

Improve

understanding of

thresholds and

nonlinearities of

geophysical

systems related to

climate change

Develop and test

climate change

models

CRS-4

H.R. 1578 (M.

Udall)

Research

Focus

(Continued)

Effects of global

climate change on

agriculture, energy

production and

use,

transportation,

human health

Adoption rates of

policy and

technology to

reduce climate

change variability

and examine

market and policy

barriers

Source of

Research

United States Global

Change Research

Program

(interagency)

H.R. 4067

(Gilchrest)

H.R. 6 (Senatepassed)

S. 17 (Daschle)

S. 139

(Lieberman)

S. 1164 (Collins)

(Continued)

Impact of the Kyoto

Protocol on

United States:

industry,

international

cooperation on

scientific research

and development,

United States

participation in

environmental

climate change

mitigation efforts

and technology

deployment

National Science

Foundation,

Department of

Commerce

Department of

Agriculture

National Academy of

Sciences,

Department of

Energy (multiple

offices),

Department of

Agriculture, and

Office of National

Climate Change

Policy in the

Executive Office of

the President

Determined by the

Executive Office

of the President

National Science

Foundation,

Department of

Commerce

Department of

Commerce

CRS-5

Outcomes

Research

Funding

Authorized

H.R. 1578 (M.

Udall)

H.R. 4067

(Gilchrest)

H.R. 6 (Senatepassed)

S. 17 (Daschle)

S. 139

(Lieberman)

Vulnerability

Assessment

Policy Assessment

Annual Report

Interagency climate

and other global

change data

management

working group

Models of climate

change

Report on technology

transfers income and

royalties

Report on United

States impact of

Kyoto Protocol

New measurements

and standards

National Science

Foundation

research

Education program

for farmers on

global climate

change

Technical assistance

to coastal states on

adapting to

climate change

Regional

vulnerabilities and

adaptation

assessment

Assessment of

climate change

effects on

economic and

social systems

Annual Reports

Change in National

Global Change

Research Plan

Climate change

strategy

A national

assessment of

climate change

impacts

Models of climate

change

Report on technology

transfers income and

royalties

Report on United

States impact of

Kyoto Protocol

New measurements

and standards

National Science

Foundation

research

Models of climate

change

None specified

Yes

Yes

None specified

Yes

Yes

Annual description

of measures the

United States has

adopted or

implemented to

reduce climate

change

S. 1164 (Collins)

CRS-6

GHG Reporting and Registry Bills

Under the UNFCCC, the United States annually reports on its GHG emissions.6

The United States Environmental Protection Agency (EPA) does this reporting using

various techniques (e.g., fuel analysis for CO2). The three dominant sources of GHG

emissions are electricity generation (33.1%), transportation (26.9%), and industry

(19%).7 At the national level, electric utilities must report their GHG emissions

pursuant to the 1990 Clean Air Act, but there is no overall national GHG reporting

requirement. However, some states also gather data through voluntary or mandatory

GHG emissions reporting mechanisms.8

Four bills, Title 10 of H.R. 6 (Senate-passed version),9 H.R. 1245 (Olver), S. 17

(Daschle), and S. 194 (Corzine) focused primarily on expanding emissions reporting

to a broad array of sources. (See Table 2.) While S. 17 and S. 194 directed the EPA

to determine who must report emissions information, H.R. 6 established a category

of covered sources. Furthermore, these bills would have established a national

registry to collect annual lists submitted by entities on their GHG emissions and

sources, and would have established a national GHG registry to collect voluntarily

reported information on GHG emissions reductions. S. 17 and S. 194 would also

have required the EPA Administrator and the Secretaries of Commerce, Agriculture,

and Energy to develop tools for quantifying, verifying, reporting, and accounting for

GHG emissions, and would have required the EPA Administrator to publish an

annual national GHG emissions inventory. While these bills established reporting

requirements as the basis for future regulations, two other bills (S. 139 and H.R.

4067) would have established a monitoring program as the basis for a GHG cap and

trade program. Specifically, these bills would have included a requirement that the

Administrator of the EPA establish a national GHG database and develop methods

and standards to measure and verify GHG emissions.

In addition to their different GHG reporting strategies, these bills had other

major components. For example, S. 17 set a goal for the President to reduce the

federal government’s net GHG emissions to 1990 levels by 2013. H.R. 6 would have

established the Office of National Climate Change Policy to develop a National

Climate Change Strategy with the long-term goal of stabilization of greenhouse gas

concentrations. S. 17 would also have authorized $2 billion per year in grants to state

and local governments to reduce GHG emissions.

6

See CRS Report 98-235 ENR, Global Climate Change: U.S. Greenhouse Gas Emissions

— Status, Trends, and Projections.

7

U.S. Environmental Protection Agency, U.S. GHG Emissions and Sinks 1990-2001, p.

ES-6. Additional sources are agriculture (7.6%), commerce (7.2%), and residential

activities (5.4%).

8

See CRS Report RL32043, Climate Change: State and Local Actions to Address

Greenhouse Gas Emissions.

9

The Senate-passed version of H.R. 6 was identical to the Senate-passed version of H.R.

4 from the 107th Congress. There were no climate change provisions in the House-passed

version of H.R. 6 from the 108th Congress, or in the conference report on H.R. 6 (H.Rept.

108-375).

CRS-7

Table 2. Comparison of GHG Reporting and Registry Bills

Covered

Entity

H.R. 6 (Senate

Passed)

H.R. 1245 (Olver)

H.R. 4067

(Gilchrest)

S. 17 (Daschle)

S. 139

(Lieberman)

S. 194 (Corzine)

Entities that emit

more than 10,000

metric tons of CO2

(or equivalent)

Entities that emit

more than 10,000

metric tons of CO2

(or equivalent)

Major manufacturers

or importers of

motor vehicles

Manufacturers or

importers of DOElisted products

Entities that:

(A) own or control

sources of GHG

emissions in the

electric power,

industrial, or

commercial sectors

of the United States

economy, refine or

import petroleum

products for use in

transportation, or

produce or import

HFCs PFCs, or

SF6, and

(B) emit more than

10,000 metric tons

of GHG/ year (CO2

or equivalent) or

produce or import

petroleum

products, HFCs,

PFCs, SF6, or

other greenhouse

gases that, when

used, will emit over

10,000 metric tons

of GHG/year CO2

(or equivalent)

Entities that exceed

thresholds to be set

by the Administrator

of the EPA

Entities that:

(A) own or control

sources of GHG

emissions in the

electric power,

industrial, or

commercial sectors

of the United States

economy, refine or

import petroleum

products for use in

transportation, or

produce or import

HFCs PFCs, or

SF6, and

(B) emit more than

10,000 metric tons

of GHG/ year (CO2

or equivalent) or

produce or import

petroleum

products, HFCs,

PFCs, SF6, or

other greenhouse

gases that, when

used, will emit over

10,000 metric tons

of GHG/year CO2

(or equivalent)

Entities that exceed

thresholds to be set

by the

Administrator of

the EPA

CRS-8

H.R. 6 (Senate

Passed)

H.R. 1245 (Olver)

H.R. 4067

(Gilchrest)

S. 17 (Daschle)

S. 139

(Lieberman)

S. 194 (Corzine)

Excluded

Entities

Feedlots and Farms

Farms

None indicated

None indicated

None indicated

None indicated

Covered

GHGs

The 6 GHGs: CO2,

CH4, N2O, HFCs,

PFCs, SF6

The 6 GHGs: CO2,

CH4, N2O, HFCs,

PFCs, SF6

The 6 GHGs: CO2,

CH4, N2O, HFCs,

PFCs, SF6

The 6 GHGs: CO2,

CH4, N2O, HFCs,

PFCs, SF6

The 6 GHGs: CO2,

CH4, N2O, HFCs,

PFCs, SF6

The 6 GHGs: CO2,

CH4, N2O, HFCs,

PFCs, SF6

Other substances may

be added

Other substances may

be added

Yes

Yes

Yes

Yes

Yes

Yes

Includes

Provisions

for

Voluntary

Reporting

CRS-9

GHG Emission-Reduction Bills

The United States has no federal GHG reduction requirements, though proposals

to require such reductions have been made. These proposals have included

“command and control” regulations on emissions, GHG emission taxes, and marketbased techniques to limit emissions. The last, market-based programs, typically take

as their model the Clean Air Act acid rain program.10

In the 108th Congress, bills were introduced that would have established marketbased GHG reductions (see Table 3). One pair of bills, S. 139 and H.R. 4067, would

have capped the emissions of the six greenhouse gases specified in the United

Nations’ Framework Convention on Climate Change.11 Three other bills, H.R. 2042,

S. 366, and S. 843, would have focused on reducing carbon dioxide from electric

utilities. Each of these bills would have used market-based trading mechanisms to

limit GHG emissions. Cap and trade programs set strict limits on specific emissions

from a particular group of sources, allowing individual sources to trade reductions.

This flexibility in who makes reductions leads to lower costs. One method is to

allocate emissions allowances to each source. Allowances can be bought or sold. In

a well-functioning market, entities that face relatively low emission-reduction costs

would achieve extra emission reductions. Then these entities would sell their unused

allowances to entities that face higher emission-reduction costs. An entity facing

higher costs could then purchase allowances to exceed its initial emissions cap.12

Carbon Dioxide Reduction Bills. As shown in Table 3, H.R. 2042

(Waxman), S. 36613 (Jeffords), and S. 843 (Carper) focused on electric utility

emissions.14 These bills would have limited emissions of carbon dioxide, along with

other air pollutants.15 (See Table 3.) The first round of emissions reductions would

have gone into effect in the year 2009. S. 843 would also have included a second

phase of emissions reductions beginning in 2012.

Comprehensive GHG Emissions Reductions. Unlike other bills

proposed in the 108th Congress, the Climate Stewardship Act (S. 139 and H.R. 4067)

focused on achieving market-driven reductions in all six greenhouse gases (see Table

3). The legislation applied to entities in the electricity, transportation, industry, and

10

The acid rain program caps emissions from each source, but allows sources to exceed

their caps if they purchase credits from sources that achieve extra emissions reductions.

11

The six greenhouse gases are carbon dioxide, methane, nitrous oxide,

hydrofluorocarbons, perfluorocarbons, and sulfur hexaluoride.

12

For more information on market mechanisms, see CRS Report IB97057, Global Climate

Change: Market-Based Strategies to Reduce Greenhouse Gases.

13

S. 366 was similar to S. 566 from the 107th Congress.

14

S. 485 (Inhofe), the Clear Skies Act of 2003, also established a cap and trade program for

nitrogen oxides from utilities. However, S. 485 is not included in Table 3 because it did not

address carbon dioxide, the primary greenhouse gas.

15

This report does not discuss bills that would have reduced other pollutants without

including CO2. Such bills included H.R. 203, H.R. 999 and S. 485.

CRS-10

commercial sectors that emit over 11,023 tons of greenhouse gases per year. Starting

in 2010, the bills would have capped total GHG emissions at 6.5 billion tons (CO2

equivalent emissions), reduced by the amount of CO2 (equivalent emissions) from

non-covered entities in the year 2000. After 2015, S. 139 would have further

restricted emissions to 5.65 billion tons, reduced by the amount of emissions from

non-covered entities in 1990. Both bills would also have established a formula for

allocating GHG emissions allowances, and would have established a climate change

credit corporation to manage allowance trading.

In addition to establishing caps on all six greenhouse gases, the bills would have

supported climate change research and established a GHG emissions inventory. The

bills also included a requirement that the Administrator of the EPA establish a

national GHG database, and develop methods and standards to measure and verify

GHG emissions. (See Table 1 and Table 2.)

CRS-11

Table 3. GHG Cap and Trade Bills

H.R. 4067 (Gilchrest)

S. 139 (Lieberman)

H.R. 2042 (Waxman)

S. 366 (Jeffords)

S. 843 (Carper)

Covered

sources

Any electric power,

industrial, or commercial

entity that emits over

10,000 metric tons of

CO2 equivalent/year; any

refiner or importer of

petroleum products for

transportation use that

when combusted will

emit over 10,000 metric

tons of CO2

equivalent/year; and, any

importer or producer of

HFCs, PFCs or SF6 that

when used will emit over

10,000 metric tons of

CO2 equivalent/year.

Any electric power,

industrial, or commercial

entity that emits over

10,000 metric tons of

CO2 equivalent/year; any

refiner or importer of

petroleum products for

transportation use that

when combusted will

emit over 10,000 metric

tons of CO2

equivalent/year; and, any

importer or producer of

HFCs, PFCs or SF6 that

when used will emit over

10,000 metric tons of

CO2 equivalent/year.

Any fossil fuel-fired

electric generating

facility that has a

capacity of greater than

15 megawatts and

generates electricity for

sale.

Any fossil fuel-fired

electric generating

facility that has a

capacity of greater than

15 megawatts, generates

electricity for sale, and

emits a covered pollutant

into the air

Any fossil fuel-fired16

electric generating

facility that has a

capacity of greater than

25 megawatts and

generates electricity for

sale.

Covered

pollutants

All 6 GHGs

All 6 GHGs

1 GHG: carbon dioxide

Other Pollutants: sulfur

dioxide, nitrogen

oxides, and mercury

1 GHG: carbon dioxide

Other Pollutants: sulfur

dioxide, nitrogen

oxides, and mercury

1 GHG: carbon dioxide

Other Pollutants: sulfur

dioxide, nitrogen

oxides, and mercury

16

The regulations for mercury are for coal-fired electric generating units rather than fossil fuel-fired. Covered sources are also

different for sulfur dioxide.

CRS-12

Emissions cap

Implementation

Strategy

17

H.R. 4067 (Gilchrest)

S. 139 (Lieberman)

H.R. 2042 (Waxman)

S. 366 (Jeffords)

S. 843 (Carper)

6.49 billion tons of CO2

equivalent/year from

2009 to 2015 for all

covered entities taken

together.

6.49 billion tons of CO2

equivalent/year

from 2009 to 2015

for all covered

entities taken

together.

5.64 billion tons of CO2

equivalent/year

after 2015.

Reduce CO2 emissions

CO2 emissions to 2.05

billion tons/yr17

beginning in 2009

Tons of CO2 emitted

from affected units in

2006, beginning in 2009

Tradeable allowance

system. EPA shall

determine allocations

based on several

economic and equity

criteria including

efficiency and impact on

consumers. Allowances

to be allocated upstream

to refiners and importers

of transportation fuel

along with producers of

HFCs, PFCs, and SF6;

downstream to electric

generation, industrial,

and commercial entities

Tradeable allowance

system. EPA shall

determine allocations

based on several

economic and equity

criteria including

efficiency and impact on

consumers. Allowances

to be allocated upstream

to refiners and importers

of transportation fuel

along with producers of

HFCs, PFCs, and SF6;

downstream to electric

generation, industrial,

and commercial entities

To be determined by

EPA — market

mechanisms permitted

(except for Hg)

to 1990 levels by 2009

Tons of CO2 emitted

from affected units in

2001, beginning in 2012

Tradeable allowance

system. Allowances

allocated to various

sectors and interests,

including households,

dislocated workers and

communities, electricity

intensive industries,

affected utilities, energy

efficiency and renewable

energy activities, and

sequestration activities.

Tradeable allowance

system. Allocation

formulas based on

generating efficiency.

Allocations includes a

new source reserve to

provide allowances to

newly constructed

sources.

S. 366 would further limit the number of emission allowances in present year by the number of tons emitted two years prior by

small electricity generating facilities, and by any number required to protect the public health, welfare, or the environment.

CRS-13

H.R. 4067 (Gilchrest)

S. 139 (Lieberman)

H.R. 2042 (Waxman)

S. 366 (Jeffords)

Percentage

change v.

business as

usual by 2010

-5% c

-5% b,c

-9.5%

-7.5%

-5.1% a

Percentage

change v. 1990

levels

(UNFCCC

baseline year)

+27.7% c

+27.7% b,c

+21.7

+24.2%

+27.5% a

Penalties for

non-compliance

Excess emission penalty

equal to three times the

market price for

allowance on the last day

of the year at issue

Excess emission penalty

equal to three times the

market price for

allowance on the last day

of the year at issue

none specified

Same as CAA, title IV

except excess emission

penalty is three times the

average market price for

allowances

Excess emission penalty

of $100 per ton plus onefor-one offset from

future emissions

allocations

a

S. 843 (Carper)

Assumes requirement of S. 843 is achieved in 2010, rather than 2013.

Phase 1 only. Phase 2 would involve a 2016 reduction down to 1990 levels by affected sources.

c

Depending on actual coverage and the implementation strategies employed by affected sources, reductions achieved could be above the 5% estimate

presented here. CRS estimates based on 85% coverage and U.S.-only implementation would be about 8.8% in 2010, 22.6% above 1990 levels.

b

Source: CRS calculations based on projections contained in the UNFCCC Secretariat’s 2002 Climate Action Report. Available at:

[http://www.epa.gov/globalwarming/publications/car/index.html]. For more information see CRS Report RL31779.

CRS-14

Appendix 1. Climate Change Bills in the 108th Congress

Bill (s) and Short Title (s)

S. 17 (Daschle)

Global Climate Security Act of 2003, National GHG emissions

Inventory and Registry Act of 2003

S. 139 (Lieberman)

Climate Stewardship Act of 2003

S. 194 (Corzine)

National GHG Emissions Inventory and Registry Act of 2003

S. 366 (Jeffords)

Clean Power Act of 2003

S. 843 (Carper)

Clean Air Planning Act of 2003

S. 1164 (Collins)

Abrupt Climate Change Research Act of 2003

H.R. 6 (As passed by the Senate)a

Energy Policy Act of 2003

CO2 and Comprehensive

CO2 & NOx NOx Emissions Caps

Set

GHG

Climate Clarify Reporting Emissions Emission Allowance and Allowance

Caps for Trading Trading for all

Goal for

Change Research and

GHGs

Other

Utilities Program

U.S.

Research Methods Registry

SENATE BILLS

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

HOUSE BILLS

H.R. 1245 (Olver)

X

National GHG Emissions Inventory Act of 2003

H.R. 1578 (M. Udall)

X

Global Change Research and Data Management Act of 2003

H.R. 2042 (Waxman)

Clean Smokestacks Act of 2003

H.R. 4067 (Gilchrest)

X

X

X

Climate Stewardship Act of 2004

a

No climate provisions in House-passed H.R. 6, or in the conference report on H.R. 6 (H.Rept. 108-375)

X

X

X

X

X

X

X

CRS-15

Appendix 2. Key Provisions of Climate Change Legislation in the 108th Congress

Bill No.

Sponsor

Last Major Action

Key Provisions

S. 17

Daschle

Referred to Senate Environment and

Public Works — January 7, 2003

Establishes a mandatory greenhouse gas database. In addition, it

establishes a commission to help implement the UNFCCC.

Authorizes $2 billion annually in grants to state and local

governments to reduce greenhouse gas emissions. It does not

mandate emissions reductions.

S. 139

Lieberman

Considered by Senate, referred back to

Senate Environment and Public Works

— October 30, 2003

Requires any entity that emits more than 10,000 metric tons of

greenhouse gases (CO2 equivalent) to reduce emissions to year

2000 levels by 2010, and 1990 levels by 2016. Allows: tradeable

credits for reductions beyond those required, reductions from

non-covered entities, increases in carbon sequestration, increases

in passenger vehicle fuel economy, and emissions reductions in

other countries.

S. 194

Corzine

Referred to Senate Environment and

Public Works — January 17, 2003

Establishes mandatory greenhouse gas registries, but does not

require emission reductions.

S. 366

Jeffords

Referred to Senate Environment and

Public Works — February 12, 2003

The Clean Power Act of 2003 amends the Clean Air Act to

require the Administrator of the Environmental Protection

Agency to promulgate regulations to achieve specified

reductions in emissions of sulfur dioxide, nitrogen oxides, carbon

dioxide and mercury from certain electric generation facilities by

January 1, 2009.

S. 843

Carper

Referred to the Senate Environment and

Public Works — April 9, 2003

Amends the Clean Air Act to establish a national uniform

multiple air pollutant regulatory program, including for carbon

dioxide, for the electric generating sector.

S. 1164

Collins

Referred to the Senate Commerce,

Science and Transportation — June 2,

2003

Provides for research to understand, assess, and predict humaninduced and natural processes of abrupt climate change.

CRS-16

Bill No.

Sponsor

Last Major Action

Key Provisions

H.R. 6 (SenatePassed version)

Tauzin

Passed Senate — July 31, 2003;

Conference report approved by House —

November 18, 2003

Cloture motion on conference report

failed in Senate — November 21, 2003

(Conference report and House-passed

version have no climate-related

provisions)

Establishes research programs focusing on vulnerabilities,

technology, sequestration, and other topics. Establishes

emissions monitoring and reporting mechanisms.

H.R. 1245

Olver

Referred to House Energy and

Commerce — March 24, 2003

Requires EPA to establish a GHG emissions information system

to collect information submitted regarding an entity’s GHG

emissions. Establishes voluntary registry to collect information

on emissions reductions.

H.R. 1578

M. Udall

House Science Committee motion to

report failed — May 1, 2003

Directs the President to develop a National Global Change

Research Plan. Requires plan to set recommendations for

research, research priorities, and establish a data management

working group to coordinate global GHG research.

H.R. 2042

Waxman

Referred to House Energy and

Commerce — May 20, 2003

Amends the Clean Air Act to require the EPA to promulgate

regulations to achieve specific reductions of carbon dioxide from

power plants.

H.R. 4067

Gilchrest

Referred to House Science, Energy and

Commerce — March 30, 2004

Requires any entity that emits more than 10,000 metric tons of

greenhouse gases (CO2 equivalent) to reduce emissions to year

2000 levels by 2010. Allows: tradeable credits for reductions

beyond those required, reductions from non-covered entities,

increases in carbon sequestration, and emissions reductions in

other countries.

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