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Market-Based Greenhouse Gas Emission Reduction Legislation: 108th Through 117th Congresses

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Market-Based Greenhouse Gas Emission
September 29, 2020January 12, 2021
Reduction Legislation: 108th throughThrough 116th
Jonathan L. Ramseur
Congresses
Specialist in Environmental Specialist in Environmental
Policy Policy
Congressional interest in market-based greenhouse gas (GHG) emission control legislation has Congressional interest in market-based greenhouse gas (GHG) emission control legislation has

fluctuated over the past 15 years. fluctuated over the past 15 years. During that time, legislation has often involved market-based
approaches, such asMarket-based approaches that would address GHG emissions typically involve either a cap-and-trade system or a carbon tax or emissions fee program. Both 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, approaches would place a price—directly or indirectly—on GHG emissions or their inputs,
namely fossil fuels. Both would increase the price of fossil fuelsnamely fossil fuels. Both would increase the price of fossil fuels , and both would reduce GHG emissions to some degree. , and both would reduce GHG emissions to some degree.
Both would allow Both would allow emission sourcescovered entities to choose the best way to meet their emission requirements or reduce costs, to choose the best way to meet their emission requirements or reduce costs, potentialypotentially by by
using market forces to minimize national costs of emission reductions. Preference between the two approaches ultimately 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—emission levels or emission prices.depends on which variable policymakers prefer to precisely control—emission levels or emission prices.
A primary policy concern with either approach is the economic impacts that may result. Expected energy price increases 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 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, 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.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 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 cap-and-trade systems. Between the 112th and 115th116th Congresses, most of the introduced bills would have established carbon Congresses, most of the introduced bills would have established carbon
tax or emissions fee programs. tax or emissions fee programs. Most of the proposals from the 116th Congress would establish a carbon tax or emissions fee
program. The proposals rangeThe proposals ranged in the scope of emissions covered from CO2 emissions from fossil fuel combustion to multiple in the scope of emissions covered from CO2 emissions from fossil fuel combustion to multiple
GHG GHG emissions from a broader array of sources. In addition, the proposals emissions from a broader array of sources. In addition, the proposals differdiffered by how, to whom, and for what purpose the 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 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. fee, or emission allowance revenue would yield greater economic impacts than the direct impacts of the carbon price.
Figure 1.Number and Type of Introduced GHG Emission Reduction Bills
108th Congress through 116th Congress 108th Congress through 116th Congress

Source: Prepared by CRS. Prepared by CRS.
Notes: “Other Approaches” include (1) proposals that did not specify the “Other Approaches” include (1) proposals that did not specify the overal framework overall framework but would have authorized EPA to but would have authorized EPA to
establish a GHG emissionestablish a GHG emission reduction program and (2) proposals that combine elementsreduction program and (2) proposals that combine elements from a capfrom a cap -and-trade system with price -and-trade system with price
control features in a carbon tax or emissionscontrol features in a carbon tax or emissions fee system,fee system, sometimes described sometimes described as hybrid approaches. 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 This report includes a separate table for each Congress, comparing GHG emission reduction legislation by the following
characteristics:characteristics:
  General framework: the proposed program structure and scope in terms of emissions covered, multiple the proposed program structure and scope in terms of emissions covered, multiple
GHG GHG emissions, or just carbon dioxide (CO2) emissions. emissions, or just carbon dioxide (CO2) emissions.
Congressional Research Service Market-Based Greenhouse Gas Emission Reduction Legislation   Covered entities/materials: a list of the industries, sectors, or materials that would be subject to the a list of the industries, sectors, or materials that would be subject to the
program. program.
  Emissions limit or target: the GHG or CO2 emissions target or cap for a specified year. the GHG or CO2 emissions target or cap for a specified year.
  Distribution of allowance value or tax revenue: how emission allowance value or carbon tax or fee how emission allowance value or carbon tax or fee
revenue would be distributed. revenue would be distributed.
  Offset and international allowance treatment: the degree to which offsets and international allowances the degree to which offsets and international allowances
could be used for compliance purposes and the types of offset activities that would qualify. 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 a U.S. GHG reduction program may create a reduction program may create a
competitive disadvantage for some domestic businesses, particularly carbon-intensive, trade-exposed competitive disadvantage for some domestic businesses, particularly carbon-intensive, trade-exposed
industries. industries.
  Additional GHG reduction measures: other mechanisms designed to further reduce GHG emissions that other mechanisms designed to further reduce GHG emissions that
are not covered in the central program. are not covered in the central program.

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Contents
Introduction ..................................................................................................................................... 1 Background ............... 1
Background...................................................................................................................... 3
What Is a GHG Emissions Cap-and-Trade System? ................................................................. 4 3
What Is a Carbon Tax or Emissions Fee? ....................................................................... 4........... 5
GHG Emission Reduction Legislation by Congress ....................................................................... 6

Figures
Figure 1.Number and Type of Introduced GHG Emission Reduction Bills ............................... 2
Figure 2. Number and Type of Market-Based GHG Emission Reduction Bil s Bills Introduced
in 108th Congress through 116th Congress .................................................................................... 3 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

Contacts
Author Information ........................................................................................................................ 71

Congressional Research Service Congressional Research Service


Market-Based Greenhouse Gas Emission Reduction Legislation

Introduction
Human activities, particularly fossil fuel combustion and industrial operations, have raised the Human activities, particularly fossil fuel combustion and industrial operations, have raised the
atmospheric concentration of carbon dioxide (CO2) and other greenhouse gases (GHGs)1 by about atmospheric concentration of carbon dioxide (CO2) and other greenhouse gases (GHGs)1 by about
40% over the past 150 years. Almost 40% over the past 150 years. Almost al all climate scientists agree that these GHG increases have climate scientists agree that these GHG increases have
contributed to a warmer climate today and that, if they continue, they contributed to a warmer climate today and that, if they continue, they wil will contribute to future contribute to future
climate change.2 Although a range of actions that seek to reduce GHG emissions are currently climate change.2 Although a range of actions that seek to reduce GHG emissions are currently
underway or being developed on the international3 and subnational level (e.g., individual state underway or being developed on the international3 and subnational level (e.g., individual state
actions or regional partnerships),4 federal policymakers and stakeholders have different actions or regional partnerships),4 federal policymakers and stakeholders have different
viewpoints over what to do, if anything, about future climate change and related impacts. viewpoints over what to do, if anything, about future climate change and related impacts.
Congressional interest in GHG emission control legislation has fluctuated over the last 15 years. Congressional interest in GHG emission control legislation has fluctuated over the last 15 years.
Proposals to limit GHG emissions have often focused on market-based approaches, such as a Proposals to limit GHG emissions have often focused on market-based approaches, such as a
GHG emission cap-and-trade program or a GHG emissions tax (often referred to as a carbon tax) GHG emission cap-and-trade program or a GHG emissions tax (often referred to as a carbon tax)
or fee.or fee.5 In general, a market-based approach would place a price on GHG emissions (e.g., through In general, a market-based approach would place a price on GHG emissions (e.g., through
an emissions cap or emission tax or fee), an emissions cap or emission tax or fee), al owingallowing covered entities to determine their pathway of covered entities to determine their pathway of
compliance.6
This report provides a comparison of the legislative proposals from the 108th through the 116th
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. During this time frame, Members
introduced multiple energy-related proposals that would have likely resulted in reductions in

1 GHGs compliance.5 Other nonmarket approaches may include performance-based or technology-based standards (e.g., best available control technology) or electricity or energy portfolio standards.6 1 GHGs in the atmosphere trap radiation as heat, warming the Earth’s surface and oceans. in the atmosphere trap radiation as heat, warming the Earth’s surface and oceans. T heThe primary GHGs primary GHGs emitted emitted
by human activities (and estimated by EPA in its annual inventories) include CO2, methane, nitrous oxide (N2O), sulfur by human activities (and estimated by EPA in its annual inventories) include CO2, methane, nitrous oxide (N2O), sulfur
hexafluoride (SF6), chlorofluorocarbons, hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs). Other GHGs hexafluoride (SF6), chlorofluorocarbons, hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs). Other GHGs
includeinclude carbonaceous and sulfuriccarbonaceous and sulfuric aerosols, hydrochlorofluorocarbons, and elevated tropospheric ozone pollution aerosols, hydrochlorofluorocarbons, and elevated tropospheric ozone pollution
generated by emissions of nitrogen oxides andgenerated by emissions of nitrogen oxides and volatile organic compounds, suchvolatile organic compounds, such as solvents.as solvents.
2 For the latest U.S. assessment of the human contribution to climate change, see Intergovernmental Panel on Climate 2 For the latest U.S. assessment of the human contribution to climate change, see Intergovernmental Panel on Climate
Change, Change, Global Warm ingWarming of 1.5°C, Special Report, 2018; and U.S. Global, 2018; and U.S. Global Change Research Program, Change Research Program, Fourth National
Clim ate Assessm entClimate Assessment, vol. II: Im pactsImpacts, Risks, and Adaptation in the United States
, 2018. See also CRS, 2018. See also CRS Report R45086, Report R45086,
Evolving Assessm ents of Hum anAssessments of Human and Natural Contributions to Clim ateClimate Change , by Jane A. Leggett, by Jane A. Leggett . .
3 Some countries have levied 3 Some countries have levied carbon taxes (or something similar) for over 20 years. For a review of carbon prices in carbon taxes (or something similar) for over 20 years. For a review of carbon prices in
other countries, see OECD, other countries, see OECD, Effective Carbon Rates: Pricing CO2 through Taxes and Em issions Trading System s, 2016,
http://www.oecd-ilibrary.org/taxation/effective-carbon-rates_9789264260115-en; and the Carbon T ax Center website
at http://www.carbontax.org/where-carbon-is-taxed.
4 A number of U.S. states have taken action requiring GHG emission reductions. T heEmissions Trading Systems, 2018, https://www.oecd.org. The European Union established a cap-and-trade program in 2005 and covers emissions from the electricity sector, selected energy-intensive industries, and aviation. See, for example, Climate Transparency, Brown to Green: The G20 Transition Towards a Net-Zero Emissions Economy, 2019, https://www.climate-transparency.org/g20-climate-performance/g20report2019; Climate Action Tracker, https://climateactiontracker.org; and Climate Watch, https://www.climatewatchdata.org/. 4 A number of U.S. states have taken action requiring GHG emission reductions. The most aggressive actions have most aggressive actions have
come from California and from the Regional Greenhousecome from California and from the Regional Greenhouse Gas Gas Initiative (RGGI)—a coalition of Initiative (RGGI)—a coalition of nine10 states from the states from the
Northeast and Mid-Atlantic regions. Northeast and Mid-Atlantic regions. T heThe RGGI RGGI is a cap-and-trade system that is a cap-and-trade system that t ooktook effect in 2009 that applies to CO2 effect in 2009 that applies to CO2
emissions from electric power plants. (See CRSemissions from electric power plants. (See CRS Report R41836, Report R41836, The Regional Greenhouse Gas Initiative: Background,
Im pactsImpacts, and Selected Issues
, by Jonathan L. Ramseur.) California established, by Jonathan L. Ramseur.) California established a cap-and-trade program that took effect a cap-and-trade program that took effect
in 2013. California’s cap covers multiple GHGs,in 2013. California’s cap covers multiple GHGs, which account for approximately 85% of California’s GHGwhich account for approximately 85% of California’s GHG emissions. emissions.
For more details, seeFor more details, see the California Air Resourcesthe California Air Resources Board Board website,website, https://www.arb.ca.gov/cc/capandtrade/https://www.arb.ca.gov/cc/capandtrade/
capandtrade.htm. In addition to its emissions cap, California has adopted a range of other climate change mitigation capandtrade.htm. In addition to its emissions cap, California has adopted a range of other climate change mitigation
policies (e.g., renewablepolicies (e.g., renewable energy portfolio standards). 5 The 1990 Clean Air Act Amendments established a marketenergy portfolio stan dards).
5 Other approaches may include performance-based or technology-based standards (e.g., best available control
technology). See CRS Report R41973, Clim ate Change: Conceptual Approaches and Policy Tools, by Jane A. Leggett .
6 T he 1990 Clean Air Act Amendments established a market -based cap-and-trade program to control the air emissions -based cap-and-trade program to control the air emissions
(sulfur(sulfur dioxide and nitrogen oxides) that lead to acid rain. Although controversial at its inception, the dioxide and nitrogen oxides) that lead to acid rain. Although controversial at its inception, the progra mprogram is widely is widely
consideredconsidered a success.a success. See,See, for example, Gabrielfor example, Gabriel Chan et al., Chan et al., The SO2 Allowance Trading System and the Clean Air Act
Am endm entsAmendments of 1990: Reflections on Twenty Years of Policy Innovation
, Harvard Environmental Economics Program, , Harvard Environmental Economics Program,
2012, https://www.belfercenter.org/sites/default/files/legacy/files/so2-brief_digital4_final.pdf. 2012, https://www.belfercenter.org/sites/default/files/legacy/files/so2-brief_digital4_final.pdf.
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6 See CRS Report R41973, Climate Change: Conceptual Approaches and Policy Tools, by Jane A. Leggett; and CRS Report R45913, Electricity Portfolio Standards: Background, Design Elements, and Policy Considerations, by Ashley J. Lawson. Congressional Research Service 1 link to page 7 Market-Based Greenhouse Gas Emission Reduction Legislation This report provides a comparison of the legislative proposals from the 108th through the 116th 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. During this time frame, Members introduced multiple energy-related proposals that would have likely resulted in reductions in GHG emissions—legislation that promotes renewable energy7 or encourages carbon capture and GHG emissions—legislation that promotes renewable energy7 or encourages carbon capture and
sequestration8—but these sequestration8—but these bil sbills are not discussed in this report. are not discussed in this report.
In addition, starting in the 112th Congress, some Members have introduced resolutions in the In addition, starting in the 112th Congress, some Members have introduced resolutions in the
House and Senate expressing the view that a carbon tax is not in the economic interests of the House and Senate expressing the view that a carbon tax is not in the economic interests of the
United States. In September 2018, the House passed a resolution “expressing the sense of United States. In September 2018, the House passed a resolution “expressing the sense of
Congress that a carbon tax would be detrimental to the United States economy” (H.Con.Res. Congress that a carbon tax would be detrimental to the United States economy” (H.Con.Res.
119).9 An analogous resolution was not introduced in the Senate in the 115th Congress. 119).9 An analogous resolution was not introduced in the Senate in the 115th Congress.
As As Figure 2 il ustrates1 illustrates, between the 108th and 111th Congresses, most of the introduced , between the 108th and 111th Congresses, most of the introduced bil sbills
would have established cap-and-trade systems. Between the 112th and 115th Congresses, most of would have established cap-and-trade systems. Between the 112th and 115th Congresses, most of
the introduced the introduced bil sbills would have established carbon tax or emissions fee programs. would have established carbon tax or emissions fee programs.
In the 111th Congress, Members offered multiple and varied proposals,10 ultimately resulting in In the 111th Congress, Members offered multiple and varied proposals,10 ultimately resulting in
the House passage of H.R. 2454, an economy-wide cap-and-trade the House passage of H.R. 2454, an economy-wide cap-and-trade bil bill.11 A companion .11 A companion bil bill in the in the
Senate (S. 1733) was ordered reported from the Committee on Environment and Public Works, Senate (S. 1733) was ordered reported from the Committee on Environment and Public Works,
but the but the bil bill was never brought to the Senate floor for consideration. was never brought to the Senate floor for consideration.
In subsequent Congresses, some Members continued to offer GHG emission control legislation, In subsequent Congresses, some Members continued to offer GHG emission control legislation,
but these proposals saw minimal legislativebut these proposals saw minimal legislative activity. During that time frame, the U.S. activity. During that time frame, the U.S.
Environmental Protection Agency (EPA) used existing Clean Air Act authorities to promulgate Environmental Protection Agency (EPA) used existing Clean Air Act authorities to promulgate
GHG emission standards for key sectors, including the electric power and transportation sectors.12 GHG emission standards for key sectors, including the electric power and transportation sectors.12
EPA rulemakings in this area—particularly the 2015 Clean Power Plan final rule13 and the 2019 EPA rulemakings in this area—particularly the 2015 Clean Power Plan final rule13 and the 2019
Affordable Clean Energy final rule14—Affordable Clean Energy final rule14—may continue to generate interest and debate in Congress. continue to generate interest and debate in Congress.
The proposals from the 116th Congress The proposals from the 116th Congress rangeranged in their scope of emissions covered from CO2 in their scope of emissions covered from CO2
emissions from fossil fuel combustion to multiple GHG emissions from a broader array of emissions from fossil fuel combustion to multiple GHG emissions from a broader array of
sources. In addition, the proposals sources. In addition, the proposals differdiffered by how, to whom, and for what purpose the fee revenues by how, to whom, and for what purpose the fee revenues
or al owanceor allowance value would be applied. Some economic analyses indicate that policy choices to value would be applied. Some economic analyses indicate that policy choices to
distribute the tax, fee, or emission distribute the tax, fee, or emission al owanceallowance revenue would yield greater economic impacts than revenue would yield greater economic impacts than
the direct impacts of the carbon price.15
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-116th).

7 See CRS In Focus the direct impacts of the carbon price.15 7 See CRS In Focus IF10479, IF10479, The Energy Credit: An Investment Tax Credit for Renewable Energy, by Molly F. , by Molly F.
Sherlock. Sherlock.
8 See 8 See CRS CRS Report R44902, Report R44902, Carbon Capture and Sequestration (CCS) in the United States, by Peter Folger. , by Peter Folger.
9 9 T heThe House passed an identical resolution in the 114th Congress (H.Con.Res. 89). House passed an identical resolution in the 114th Congress (H.Con.Res. 89).
10 See10 See CRS CRS Report R40556, Report R40556, Market-Based Greenhouse Gas Control: Selected Proposals in the 111th Congress, by , by
Larry Parker, Brent D. Yacobucci, and Jonathan L. RamseurLarry Parker, Brent D. Yacobucci, and Jonathan L. Ramseur . .
11 H.R. 2454 (111th Congress), which was 11 H.R. 2454 (111th Congress), which was introduced by Representatives Waxman and Markey, wouldintroduced by Representatives Waxman and Markey, would have covered have covered
approximately 85% of the U.S. GHGapproximately 85% of the U.S. GHG emissions. Although not complete coverage, this approach is typically described emissions. Although not complete coverage, this approach is typically described
as economy-wide. as economy-wide.
12 See 12 See CRS CRS Report R45204, Report R45204, Vehicle Fuel Economy and Greenhouse Gas Standards: Frequently Asked Questions, by , by
Richard K. Lattanzio, Linda Richard K. Lattanzio, Linda T sangTsang, and Bill Canis. , and Bill Canis.
13 For more details, see CRS13 For more details, see CRS Report R44341, Report R44341, EPA’s Clean Power Plan for Existing Power Plants: Frequently Asked
Questions
, by James E. McCarthy et al. , by James E. McCarthy et al.
14 For more details, see CRS 14 For more details, see CRS Insight IN11142, EPA Repeals the Clean Power Plan and Finalizes Report R46482, EPA’s Affordable Clean
Energy Rule
, by Kate C. Shouse and CRS Report R45393, EPA’s Affordable Clean Energy Proposal, Energy Rule and Related Issues: Frequently Asked Questions, coordinated by Kate C. Shouse. 15 For more information, see CRS by Kate C.
Shouse, Jonathan L. Ramseur, and Linda T sang.
15 For more informat ion, see CRS Report R45625, Report R45625, Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax
or Em issionsEmissions Fee: Considerations and Potential Im pacts
Impacts, by Jonathan L. Ramseur and Jane A. Leggett, by Jonathan L. Ramseur and Jane A. Leggett . .
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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-116th). Figure 1Figure 2. Number and Type of Market-Based GHG Emission Reduction Bills
Introduced in 108th Congress through 116th Congress

Source: Prepared by CRS. Prepared by CRS.
Notes: “Other Approaches” include (1) proposals that did not specify the “Other Approaches” include (1) proposals that did not specify the overal framework overall framework but would have but would have
provided EPA with the authority to establish a GHG emissionprovided EPA with the authority to establish a GHG emission reduction program and (2) proposals that combine reduction program and (2) proposals that combine
elementselements from a cap-and-trade system with price control features in a carbon tax or emissionsfrom a cap-and-trade system with price control features in a carbon tax or emissions fee system, fee system,
sometimessometimes described described as hybrid approaches. as hybrid approaches.
Background
Over the last 15 years, broad GHG emission reduction legislation has Over the last 15 years, broad GHG emission reduction legislation has general ygenerally involved market- involved market-
based approaches—such as cap-and-trade systems or carbon tax programs—that rely on private based approaches—such as cap-and-trade systems or carbon tax programs—that rely on private
sector choices and market forces to minimize the costs of emission reductions and spur sector choices and market forces to minimize the costs of emission reductions and spur
innovation.16 Both carbon tax and emissions cap-and-trade programs would place a price—innovation.16 Both carbon tax and emissions cap-and-trade programs would place a price—
directly or indirectly—on GHG emissions or their inputs (e.g., fossil fuels), both directly or indirectly—on GHG emissions or their inputs (e.g., fossil fuels), both w ouldwould increase increase
the price of fossil fuels for the consumer, and both would reduce GHG emissions to some degree. 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 Preference between the two approaches ultimately depends on which variable policymakers
prefer to precisely control: emission levels or emission prices. As a practical matter, these market-prefer to precisely control: emission levels or emission prices. As a practical matter, these market-
based policies may include complementary or hybrid designs, incorporating elements to increase 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 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 adjusting a carbon tax/fee if a targeted range of emissions reductions were not achieved in a given
period. Alternatively,period. Alternatively, legislation could include mechanisms that would bound the range of market legislation could include mechanisms that would bound the range of market
prices for a cap-and-trade system’s emissions prices for a cap-and-trade system’s emissions al owancesallowances to improve price certainty. 16 In some instances, legislation would have directed EPA to establish a GHG emissions reduction program with a market to improve price certainty.
What Is a GHG Emissions Cap-and-Trade System?
A GHG cap-and-trade system creates an overal limit, or cap, on GHG emissions from certain
sources. Cap-and-trade programs can vary by the sources covered, which often include major

16 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 approach as one option. An alternative approach to a market -based system might involve regulatory -based system might involve regulatory
directives that require emission performance standards for specific sourcesdirectives that require emission performance standards for specific sources or the application of best available control or the application of best available control
technology. technology.
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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 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. processors (e.g., coal mines or petroleum refineries), or some combination of both.
The emissions cap is partitioned into The emissions cap is partitioned into emission allowances. . Typical yTypically, in a GHG cap-and-trade , in a GHG cap-and-trade
system, one emission system, one emission al owanceallowance represents the authority to emit one metric ton17 of carbon represents the authority to emit one metric ton17 of carbon
dioxide-equivalentdioxide-equivalent (mtCO2e).18 The emissions cap creates a new commodity—the emission (mtCO2e).18 The emissions cap creates a new commodity—the emission
al owanceallowance. Policymakers may decide to distribute the emission . Policymakers may decide to distribute the emission al owancesallowances to covered entities at to covered entities at
no cost (based on, for example, previous years’ emissions), no cost (based on, for example, previous years’ emissions), sel the al owancessell the allowances (e.g., through an (e.g., through an
auction), or use some combination of these strategies. The distribution of emission auction), or use some combination of these strategies. The distribution of emission al owances is
typical yallowances is typically a source of significant debate during a cap-and-trade program’s development, because a source of significant debate during a cap-and-trade program’s development, because
the al owancesthe allowances have monetary value. have monetary value.
At the end of each established compliance period (e.g., a calendar year or multiple years), At the end of each established compliance period (e.g., a calendar year or multiple years),
covered sources submit emission covered sources submit emission al owancesallowances to an implementing agency to cover the number of to an implementing agency to cover the number of
tons emitted. If a source did not provide enough tons emitted. If a source did not provide enough al owancesallowances to cover its emissions, the source to cover its emissions, the source
would be subject to penalties. Covered sources would have a financial incentive to make would be subject to penalties. Covered sources would have a financial incentive to make
reductions beyond what is required, because they could (1) reductions beyond what is required, because they could (1) sel sell or trade unused emission or trade unused emission
al owancesallowances to entities that face higher costs to reduce their facility emissions, (2) reduce the to entities that face higher costs to reduce their facility emissions, (2) reduce the
number of emission number of emission al owanceallowance they need to purchase, or (3) bank them, if they need to purchase, or (3) bank them, if al owedallowed, to use in a , to use in a
future year.future year.
The use of emission offsets as a compliance option received attention during debate over cap-and- The use of emission offsets as a compliance option received attention during debate over cap-and-
trade programs. An offset is a measurable reduction, avoidance, or sequestration of GHG trade 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 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 cap-and-trade proposals concluded that offset treatment (i.e., whether or not to al owallow their use their use
and, if so, to what degree) would have a substantial impact on and, if so, to what degree) would have a substantial impact on overal overall program cost. This is program cost. This is
because some emissions and sources often not covered in cap-and-trade programs can reduce because some emissions and sources often not covered in cap-and-trade programs can reduce
emissions at a lower cost per ton than many emissions at a lower cost per ton than many typical ytypically covered sources. However, the use of covered sources. However, the use of
offsets generates considerable controversy, primarily over the concern that difficult-to-assess or offsets generates considerable controversy, primarily over the concern that difficult-to-assess or
fraudulent offsets could create uncertainty about the quantity of emission reductions.19 fraudulent offsets could create uncertainty about the quantity of emission reductions.19
In addition, other mechanisms—such as In addition, other mechanisms—such as al owanceallowance banking or borrowing—may be included to banking or borrowing—may be included to
increase the flexibilityincrease the flexibility of the program and, of the program and, general ygenerally, reduce the costs. , 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

17 A metric ton is approximately 2,205 pounds. A short ton equals 2,000 pounds. 17 A metric ton is approximately 2,205 pounds. A short ton equals 2,000 pounds.
18 18 T hisThis term of measure (CO2e) is term of measure (CO2e) is used because GHGs used because GHGs vary by globalvary by global warming warming potential (GWP). GWP is an index potential (GWP). GWP is an index
developed by the Intergovernmental Panel on Climate Change (IPCC) that allows comparisons of the heatdeveloped by the Intergovernmental Panel on Climate Change (IPCC) that allows comparisons of the heat -trapping -trapping
ability of different gases over a period of time, typically 100 years. Consistent with international GHG reporting ability of different gases over a period of time, typically 100 years. Consistent with international GHG reporting
requirements, EPA’s most recent GHGrequirements, EPA’s most recent GHG inventory (2018) uses the GWP valuesinventory (2018) uses the GWP values presented in the IPCC’s 2007 Fourth presented in the IPCC’s 2007 Fourth
Assessment Report. For example, basedAssessment Report. For example, based on these GWP values, a ton of methane is 25 times more potenton these GWP values, a ton of methane is 25 times more potent than a ton of than a ton of
CO2 when averagedCO2 when averaged over a 100-year time frame. over a 100-year time frame. T heThe IPCC has since updated the 100-year GWP estimates, with some IPCC has since updated the 100-year GWP estimates, with some
increasing and some decreasing. For example, the IPCC 2013 Fifth Assessment Report reported the 100increasing and some decreasing. For example, the IPCC 2013 Fifth Assessment Report reported the 100 -year GWP for -year GWP for
methane as ranging from 28 to 36. EPA compares the 100-year GWP values in methane as ranging from 28 to 36. EPA compares the 100-year GWP values in T ableTable 1-3 of its 2018 GHG 1-3 of its 2018 GHG Inventory. Inventory.
19 Both the RGGI 19 Both the RGGI and California cap-and-trade systems allowand California cap-and-trade systems allow offsets as a compliance option (see offsets as a compliance option (see footnote 4).footnote 4).
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4 4

Market-Based Greenhouse Gas Emission Reduction Legislation

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 expected to spur innovation in less carbon-intensive technologies and stimulate other behavior expected to spur innovation in less carbon-intensive technologies and stimulate other behavior
that may decrease emissions.20that may decrease emissions.20
Economic modeling indicates that a carbon tax/fee approach could achieve emission reductions, 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 the level of which would depend on the scope and stringency (i.e., tax or fee level) of the
program.21 For example, to address emissions from fossil fuel combustion—76% of total U.S. program.21 For example, to address emissions from fossil fuel combustion—76% of total U.S.
GHG emissions22—policymakers could apply a tax/fee to fossil fuels at approximately 3,000 GHG emissions22—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 entities, including coal mines, petroleum refineries, and entities required to report natural gas
deliveries.23 deliveries.23
A carbon tax/fee would generate a new revenue stream. The magnitude of the revenues would 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 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. A 2016 Congressional Budget Office their potential emissions, and multiple other market factors. A 2016 Congressional Budget Office
study estimated that a $25/ton carbon tax would yield approximately $100 study estimated that a $25/ton carbon tax would yield approximately $100 bil ion billion in the first year in the first year
of the program.24of the program.24
When designing a carbon tax/fee system, one of the more controversial and When designing a carbon tax/fee system, one of the more controversial and chal engingchallenging questions questions
for policymakers is how, to whom, and for what purpose the new tax or fee revenues could be 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 applied. Congress would face the same issues that would be encountered during a debate over
emission emission al owanceallowance value distribution in a cap-and-trade system. value distribution in a cap-and-trade system.
When deciding how to When deciding how to al ocateallocate the revenues, policymakers would encounter trade-offs among the revenues, policymakers would encounter trade-offs among
objectives. The central trade-offs involve minimizing economy-wide costs, lessening the costs 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 borne by specific groups—particularly low-income households and displaced workers or
communities—and supporting a range of specific policy objectives. 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 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 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 depend on a number of factors, including the magnitude, design, and use of revenues of the
carbon tax or fee. carbon tax or fee.
Others who may oppose a carbon tax system express opposition to federal taxes in general or the 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 possibility that the revenues would enable greater federal spending. Owners of coal resources, in
particular, would likelyparticular, would likely lose asset values under a carbon tax system—as under a cap-and-trade 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. system—to the degree that coal becomes less competitive under the costs of emission reductions.

20 T his 20 This differs from a price system that applies to energy content, such as a tax based differs from a price system that applies to energy content, such as a tax based on British thermal units (Btu). In on British thermal units (Btu). In
1993, President Clinton proposed a deficit reduction package that included a 1993, President Clinton proposed a deficit reduction package that included a t axtax based based on energy content, measured in on energy content, measured in
Btu. Btu. T heThe goals of the 1993 Btu tax proposal were to promote energy conservation and raise revenue. At the time, the goals of the 1993 Btu tax proposal were to promote energy conservation and raise revenue. At the time, the
proposed tax wouldproposed tax would have generated a new revenue stream of about $30 billion per year. have generated a new revenue stream of about $30 billion per year. T heThe proposal was met with proposal was met with
strong opposition and wasstrong opposition and was not enacted; Congress ultimately enacted annot enacted; Congress ultimately enacted an approximately five-cent-per-gallon increase in approximately five-cent-per-gallon increase in
the motor fuels taxes. the motor fuels taxes.
21 See, 21 See, for example, Alexander R. Barron et al., “Policy Insights from the EMF 32 Study on U.S.for example, Alexander R. Barron et al., “Policy Insights from the EMF 32 Study on U.S. Carbon T a x Carbon Tax
Scenarios,” Scenarios,” Climate Change Economics, vol. 9, no. 1 (2018). , vol. 9, no. 1 (2018).
22 EPA, 22 EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2017, April 2019. , April 2019.
23 See23 See T able Table A-1 in CRS A-1 in CRS Report R45625, Report R45625, Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax or
Em issionsEmissions Fee: Considerations and Potential Im pacts
Impacts, by Jonathan L. Ramseur, by Jonathan L. Ramseur and Jane A. Leggettand Jane A. Leggett . .
24 Congressional Budget 24 Congressional Budget Office, Office, Options for Reducing the Deficit: 2017-2026, 2016. , 2016.
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Market-Based Greenhouse Gas Emission Reduction Legislation

GHG Emission Reduction Legislation by Congress
This section compares GHG emission reduction legislation from the 108th Congress to the 116th This section compares GHG emission reduction legislation from the 108th Congress to the 116th
Congress by including a separate legislative table for each Congress.25 The tables compare the Congress by including a separate legislative table for each Congress.25 The tables compare the
bil sbills by their by their overal overall framework, scope, stringency, and selected design elements. Categories of framework, scope, stringency, and selected design elements. Categories of
comparison include comparison include
the following:   General framework: the proposed program structure—emissions cap, emissions the proposed program structure—emissions cap, emissions
tax or fee, or some combination of both—and scope in terms of emissions tax or fee, or some combination of both—and scope in terms of emissions
covered (multiple GHG emissions or just CO2 emissions). covered (multiple GHG emissions or just CO2 emissions).
  Covered entities/materials: the industries, sectors, or materials that would be the industries, sectors, or materials that would be
subject to the program. subject to the program.
  Emissions limit or target: the GHG or CO2 emissions target or cap for a the GHG or CO2 emissions target or cap for a
particular year. Some targets/caps would apply only to covered sources; others particular year. Some targets/caps would apply only to covered sources; others
apply to total U.S. GHG emissions. apply to total U.S. GHG emissions.
  Distribution of allowance value or tax revenue: how emission how emission al owanceallowance value value
or carbon tax or fee revenue would be distributed (if applicable). or carbon tax or fee revenue would be distributed (if applicable).
  Offset and international allowance treatment: the degree to which offsets and the degree to which offsets and
international international al owancesallowances could be used for compliance purposes and the types of could be used for compliance purposes and the types of
offset activities that would qualify. Some proposals limit offsets by percentage of offset activities that would qualify. Some proposals limit offsets by percentage of
required reductions; others limit offsets as a percentage of required reductions; others limit offsets as a percentage of al owanceallowance
submissions.submissions.
  Mechanism to address carbon-intensive imports: a central concern with a U.S. a central concern with a U.S.
GHG reduction program is that it could raise U.S. prices more than goods GHG reduction program is that it could raise U.S. prices more than goods
manufactured abroad, potentially creating a competitive disadvantage for some manufactured abroad, potentially creating a competitive disadvantage for some
domestic businesses, particularly carbon-intensive, trade-exposed industries. domestic businesses, particularly carbon-intensive, trade-exposed industries.
Policymakers could address these potential impacts in several ways—for Policymakers could address these potential impacts in several ways—for
example, through border adjustments, tax rebates, or emission example, through border adjustments, tax rebates, or emission al owancesallowances
provided at no cost to selected industrial sectors. provided at no cost to selected industrial sectors.
  Additional GHG reduction measures: other mechanisms that are designed to other mechanisms that are designed to
further reduce GHG emissions that are not covered in the central program. further reduce GHG emissions that are not covered in the central program.


25 One GHG 25 One GHG emission reduction bill wasemission reduction bill was introduced in the 107th Congress. Senator Jeffords introduced S.introduced in the 107th Congress. Senator Jeffords introduced S. 556, which 556, which
wouldwould have amended the Clean Air Act to reduce CO2 emissionshave amended the Clean Air Act to reduce CO2 emissions from elect ric from electric power plants to below power plants to below 1990 levels. 1990 levels.
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Table 1. GHG Emission Reduction Proposals: 108th Congress
Ordered Ordered Chronological yChronologically by Introduced Date by Introduced Date
Bill Number,
Sponsor,
Distribution of
Mechanism
Introduced
Allowance
Offset and
to Address
Additional
Date, and
Value or
International
Carbon-
GHG
Committee or
General
Covered
Emissions Limit or
Tax/Fee
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
S. 139 S. 139
Cap-and-trade Cap-and-trade
Electric power, industrial, Electric power, industrial,
Cap of 5,896 mtCO2e Cap of 5,896 mtCO2e
Determined Determined by by
From From 2010 2010
No specific No specific
No specific No specific
Lieberman Lieberman
system system for for
or commercial or commercial entities that entities that
for covered sources by for covered sources by
the Secretary of the Secretary of
through 2015, through 2015,
provision provision
provision provision
Jan. 9, 2003 Jan. 9, 2003
GHG emissions GHG emissions
emit overemit over 10,000 mtCO2e 10,000 mtCO2e
2010 (equivalent to 2010 (equivalent to
Commerce; Commerce;
up to 15% of up to 15% of
Discharged by
from multiple from multiple
annual yannually; any refiner or ; any refiner or
2000 levels), 2000 levels), reduced by reduced by al owancesallowances
submitted submitted
unanimous
sectors sectors
importer importer of petroleum of petroleum
the level the level of emissions of emissions
provided to provided to
al owancesallowances can can
consent by the
products for transportation from non-covered products for transportation from non-covered
covered entities at covered entities at
come from come from
Senate Committee
use that, when combusted, use that, when combusted,
sources; cap of 5,123 sources; cap of 5,123
no cost and to the no cost and to the
domestic domestic or or
on Environment
wil wil emit over 10,000 emit over 10,000
mtCO2e for covered mtCO2e for covered
newly established, newly established,
international international
and Public Works
mtCO2e mtCO2e annual yannually; and any ; and any
sources by 2016 sources by 2016
nonprofit Climate nonprofit Climate
offsets; after offsets; after
on Oct. 29, 2003
importer importer or producer of or producer of
(equivalent to 1990 (equivalent to 1990
Change Credit Change Credit
2015, 10% of 2015, 10% of
HFC, PFC, and HFC, PFC, and SF6 that,
SF levels), levels), reduced by the reduced by the
Corporation, Corporation,
submitted submitted
S.Amdt. S.Amdt. 20282028,
6 that, when used, wil emitwhen used, wil emit over over
level level of emissionsof emissions from from
which may use which may use
al owanceallowance can can
which contained
10,000 10,000 mtCO2e
mtCO non-covered sources non-covered sources
al owanceallowance to help to help
come from come from
similar provisions,
2e energy consumers energy consumers
offsets offsets
was not agreed to
with increased with increased
on Oct. 30, 2003
prices and provide prices and provide
transition transition
assistance to assistance to
dislocated dislocated
workersworkers and and
communities communities
S. 366 S. 366
Cap-and-trade Cap-and-trade
Fossil-fuel-fired Fossil-fuel-fired electric electric
Cap on electric Cap on electric power power
EPA EPA al ocatesallocates free free
No specific No specific
No specific No specific
No specific No specific
Jeffords Jeffords
system system for CO2 generating facilitiesfor CO2 generating facilities with a with a
emissions emissions of 2.05 bil ion of 2.05 bil ion
al owancesallowances to the to the
provision provision
provision provision
provision provision
Feb. 12, 2003 Feb. 12, 2003
emissions emissions from from
capacity of greater capacity of greater than 15 than 15
metric metric tons in 2009 tons in 2009
fol owing: fol owing:
power plants; power plants;
megawatts megawatts
(equivalent to 1995 (equivalent to 1995
60% to 60% to
also addresses also addresses
emissions) emissions)
households to households to
other air other air
al eviate alleviate increased increased
pol utants pol utants
electricity electricity prices prices
(mercury, (mercury,
CRS-7 CRS-7


Bill Number,
Sponsor,
Distribution of
Mechanism
Introduced
Allowance
Offset and
to Address
Additional
Date, and
Value or
International
Carbon-
GHG
Committee or
General
Covered
Emissions Limit or
Tax/Fee
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
sulfur dioxide, sulfur dioxide,
6% for worker 6% for worker
nitrogen oxide) nitrogen oxide)
transition transition
assistance assistance
20% for renewable 20% for renewable
energy and energy energy and energy
efficiency efficiency
10% to electricity 10% to electricity
generation generation
facilities facilities
1% for forest 1% for forest
sequestration sequestration
2% for geologic 2% for geologic
sequestration sequestration
S. 843 S. 843
Cap-and-trade Cap-and-trade
Fossil-fuel-fired Fossil-fuel-fired electric electric
Cap on electric Cap on electric power power
Al ottedAllotted to to
Determined Determined by by
No specific No specific
No specific No specific
Carper Carper
system system for CO2 generating facility that has a emissionsfor CO2 generating facility that has a emissions of 2006 levelsof 2006 levels
covered sources covered sources
EPA EPA
provision provision
provision provision
Apr. 9, 2003 Apr. 9, 2003
emissions emissions from from
capacity of greater capacity of greater than 25 than 25
in 2009; lowered to in 2009; lowered to
at no cost based at no cost based
electricity electricity
megawatts and generates megawatts and generates
2001 levels 2001 levels in 2013 in 2013
on previous year’s on previous year’s
sector; also sector; also
electricity electricity for sale for sale
emission emission levels levels
addresses addresses
(minus a reserve (minus a reserve
other air other air
set aside for new set aside for new
pol utants pol utants
units) units)
(mercury, (mercury,
sulfur dioxide, sulfur dioxide,
nitrogen oxide) nitrogen oxide)
H.R. 2042 H.R. 2042
Directs Directs EPA to EPA to
Fossil-fuel-fired Fossil-fuel-fired electric electric
1990 CO2 levels 1990 CO2 levels for for
No specific No specific
No specific No specific
No specific No specific
No specific No specific
Waxman Waxman
issue issue
generating facility that has a power plants by 2009 generating facility that has a power plants by 2009
provision provision
provision provision
provision provision
provision provision
May 8, 2003 May 8, 2003
regulations to regulations to
capacity of greater capacity of greater than 25 than 25
meet CO2 meet CO2
megawatts and generates megawatts and generates
emissions emissions goals; electricitygoals; electricity for sale for sale
may include a may include a
market-based market-based
CRS-8 CRS-8


Bill Number,
Sponsor,
Distribution of
Mechanism
Introduced
Allowance
Offset and
to Address
Additional
Date, and
Value or
International
Carbon-
GHG
Committee or
General
Covered
Emissions Limit or
Tax/Fee
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
approach; also approach; also
addresses addresses
other air other air
pol utants pol utants
(mercury, (mercury,
sulfur dioxide, sulfur dioxide,
nitrogen oxide) nitrogen oxide)
H.R. 4067 H.R. 4067
Cap-and-trade Cap-and-trade
Electric power, industrial, Electric power, industrial,
1990 GHG levels 1990 GHG levels for for
Determined Determined by by
Up to 15% of Up to 15% of
No specific No specific
No specific No specific
Gilchrest Gilchrest
system system for for
or commercial or commercial entities that entities that
covered sources, covered sources,
the Secretary of the Secretary of
submitted submitted
provision provision
provision provision
Mar. 30, 2004 Mar. 30, 2004
GHG emissions GHG emissions
emit overemit over 10,000 mtCO2e 10,000 mtCO2e
reduced by the level reduced by the level of of
Commerce; Commerce;
al owancesallowances can can
from multiple from multiple
annual yannually; any refiner or ; any refiner or
emissions emissions from non-from non-
al owancesallowances
come from come from
sectors sectors
importer importer of petroleum of petroleum
covered sources covered sources by by
provided to provided to
domestic domestic or or
products for transportation 2020 products for transportation 2020
covered entities at covered entities at
international international
use that, when combusted, use that, when combusted,
no cost and to the no cost and to the
offsets; if offsets offsets; if offsets
wil wil emit over 10,000 emit over 10,000
newly established, newly established,
account for 15% account for 15%
mtCO2e mtCO2e annual yannually; and any ; and any
nonprofit Climate nonprofit Climate
of of al owances, allowances, at at
importer importer or producer of or producer of
Change Credit Change Credit
least 1.5% must least 1.5% must
HFC, PFC, and SF6 that, HFC, PFC, and SF6 that,
Corporation, Corporation,
come from come from
when used, wil emit when used, wil emit over over
which may use which may use
agricultural agricultural
10,000 mtCO2e 10,000 mtCO2e
al owanceallowance to help to help
sequestration sequestration
energy consumers energy consumers
with increased with increased
prices and provide prices and provide
transition transition
assistance to assistance to
dislocated dislocated
workersworkers and and
communities, communities,
among other among other
objectives objectives
Source: Prepared by CRS. Prepared by CRS.
CRS-9 CRS-9


Table 2. GHG Emission Reduction Proposals: 109th Congress
Ordered Ordered Chronological yChronologically by Introduced Date by Introduced Date
Bill
Number,
Sponsor,

Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
S. 150 S. 150
Cap-and-trade system for Cap-and-trade system for
Fossil-fuel-fired Fossil-fuel-fired
Cap on Cap on
In 2010, EPA In 2010, EPA al ocatesallocates
No specific No specific
No specific No specific
No specific No specific
Jeffords Jeffords
CO2 emissions CO2 emissions from power from power
electric electric generating generating
electric electric
free free al owanceallowance to the to the
provision provision
provision provision
provision provision
Jan. 25, 2005 Jan. 25, 2005
plants; also addresses plants; also addresses other other
facilities facilities with a with a
power power
fol owing: fol owing:
air pol utants (mercury, air pol utants (mercury,
capacity of greater capacity of greater
emissions emissions of of
60% to households to 60% to households to
sulfur dioxide, sulfur dioxide, nitrogen nitrogen
than 15 megawatts than 15 megawatts
2.05 bil ion 2.05 bil ion
al eviate alleviate increased increased
oxide) oxide)
metric metric tons tons
electricity electricity prices prices
in 2010 in 2010
6% for worker 6% for worker
transition assistance transition assistance
20% for renewable 20% for renewable
energy and energy energy and energy
efficiency efficiency
10% to electricity 10% to electricity
generation facilities generation facilities
1% for forest 1% for forest
sequestration sequestration
2% for geologic 2% for geologic
sequestration sequestration
S. 342 S. 342
Cap-and-trade system for Cap-and-trade system for
Electric power, Electric power,
Cap of Cap of
Determined Determined by the by the
Up to 15% of Up to 15% of
No specific No specific
No specific No specific
McCain McCain
GHG emissions GHG emissions from from
industrial, or industrial, or
5,896 5,896
Secretary of Secretary of
submitted submitted
provision provision
provision provision
Feb. 10, 2005 Feb. 10, 2005
multiple multiple sectors sectors
commercial commercial entities entities
mtCO2e for mtCO2e for
Commerce; Commerce; al owances
al owances allowances allowances can can
that emit over that emit over 10,000 10,000
covered covered
provided to covered provided to covered
come from come from
mtCO2e mtCO2e annual yannually; any ; any
sources by sources by
entities at no cost and entities at no cost and
domestic domestic or or
refiner refiner or importeror importer of
of 2010 2010
to the newly to the newly
international international
petroleum petroleum products products
(equivalent (equivalent
established, nonprofit established, nonprofit
offsets; if offsets offsets; if offsets
for transportation use for transportation use
to 2000 to 2000
Climate Climate Change Credit Change Credit
account for 15% account for 15%
that, when that, when
levels), levels),
Corporation, which Corporation, which
of of al owances, allowances, at at
CRS-10 CRS-10


Bill
Number,
Sponsor,

Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
combusted, wil emit combusted, wil emit
reduced by reduced by
may use may use al owanceallowance to to
least 1.5% must least 1.5% must
over 10,000 mtCO2e over 10,000 mtCO2e
the level the level of of
help energy consumers help energy consumers
come from come from
annual yannually; and any ; and any
emissions emissions
with increased prices with increased prices
agricultural agricultural
importer importer or produceror producer
from non-from non-
and provide transition and provide transition
sequestration sequestration
of HFC, PFC, and SF6 of HFC, PFC, and SF6
covered covered
assistance to dislocated assistance to dislocated
that, when used, wil that, when used, wil
sources sources
workers workers and and
emit over emit over 10,000 10,000
communities, communities, among among
mtCO2e mtCO2e
other objectives other objectives
H.R. 759 H.R. 759
Cap-and-trade system for Cap-and-trade system for
Electric power, Electric power,
Cap of Cap of
Determined Determined by the by the
Up to 15% of Up to 15% of
No specific No specific
No specific No specific
Gilchrest Gilchrest
GHG emissions GHG emissions from from
industrial, or industrial, or
5,896 5,896
Secretary of Secretary of
submitted submitted
provision provision
provision provision
Feb. 10, 2005 Feb. 10, 2005
multiple multiple sectors sectors
commercial commercial entities entities
mtCO2e for mtCO2e for
Commerce; Commerce; al owances
al owances allowances allowances can can
that emit over that emit over 10,000 10,000
covered covered
provided to covered provided to covered
come from come from
mtCO2e mtCO2e annual yannually; any ; any
sources by sources by
entities at no cost and entities at no cost and
domestic domestic or or
refiner refiner or importeror importer of
of 2010 2010
to the newly to the newly
international international
petroleum petroleum products products
(equivalent (equivalent
established, nonprofit established, nonprofit
offsets; if offsets offsets; if offsets
for transportation use for transportation use
to 2000 to 2000
Climate Climate Change Credit Change Credit
account for 15% account for 15%
that, when that, when
levels), levels),
Corporation, which Corporation, which
of of al owances, allowances, at at
combusted, wil emit combusted, wil emit
reduced by reduced by
may use may use al owanceallowance to to
least 1.5% must least 1.5% must
over 10,000 mtCO2e over 10,000 mtCO2e
the level the level of of
help energy consumers help energy consumers
come from come from
annual yannually; and any ; and any
emissions emissions
with increased prices with increased prices
agricultural agricultural
importer importer or produceror producer
from non-from non-
and provide transition and provide transition
sequestration sequestration
of HFC, PFC, and SF6 of HFC, PFC, and SF6
covered covered
assistance to dislocated assistance to dislocated
that, when used, wil that, when used, wil
sources sources
workers workers and and
emit over emit over 10,000 10,000
communities, communities, among among
mtCO2e mtCO2e
other objectives other objectives
H.R. 1451 H.R. 1451
Directs Directs EPA to issue EPA to issue
Fossil-fuel-fired Fossil-fuel-fired
1990 CO2 1990 CO2
No specific provision No specific provision
No specific No specific
No specific No specific
No specific No specific
Waxman Waxman
regulations to meet CO2 regulations to meet CO2
electric electric generating generating
levels levels for for
provision provision
provision provision
provision provision
Mar. 17, 2005 Mar. 17, 2005
emissions emissions goals; may include facilitiesgoals; may include facilities that have a that have a
power power
a market-based approach; a market-based approach;
capacity of greater capacity of greater
plants by plants by
also addresses also addresses other air other air
than 25 megawatts than 25 megawatts
2010 2010
CRS-11 CRS-11


Bill
Number,
Sponsor,

Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
pol utants (mercury, sulfur pol utants (mercury, sulfur
and generate and generate
dioxide, nitrogen oxide) dioxide, nitrogen oxide)
electricity electricity for sale for sale
S. 730 S. 730
EPA determines EPA determines the the
Fossil-fuel-fired Fossil-fuel-fired
Cap on Cap on
No specific provision No specific provision
No specific No specific
No specific No specific
No specific No specific
Leahy Leahy
framework framework of the program; of the program;
electric electric generating generating
electric electric
provision provision
provision provision
provision provision
Apr. 6, 2005 Apr. 6, 2005
also addresses also addresses other air other air
facilities facilities (no minimum (no minimum
power power
pol utants (mercury, sulfur pol utants (mercury, sulfur
threshold) threshold)
emissions emissions of of
dioxide, nitrogen oxide) dioxide, nitrogen oxide)
2.05 bil ion 2.05 bil ion
metricmetric tons tons
in 2010 in 2010
H.R. 1873 H.R. 1873
Cap-and-trade system for Cap-and-trade system for
Fossil-fuel-fired Fossil-fuel-fired
Cap on Cap on
Al ottedAllotted to covered to covered
Determined Determined by by
No specific No specific
No specific No specific
Bass Bass
CO2 emissions CO2 emissions from from
electric electric generating generating
electric electric
sources at no cost sources at no cost
EPA EPA
provision provision
provision provision
Apr. 27, 2005 Apr. 27, 2005
electricity electricity sector; also sector; also
facilities facilities that have a that have a
power power
based on previous based on previous
addresses addresses other air other air
capacity of greater capacity of greater
emissions emissions of of
years emission years emission levels levels
pol utants (mercury, sulfur pol utants (mercury, sulfur
than 25 megawatts than 25 megawatts
2006 levels 2006 levels
(minus a reserve (minus a reserve set set
dioxide, nitrogen oxide) dioxide, nitrogen oxide)
and generate and generate
in 2010; in 2010;
aside for new units) aside for new units)
electricity electricity for sale for sale
lowered lowered to to
2001 levels 2001 levels
in 2015 in 2015
S. 1151 S. 1151
Cap-and-trade system for Cap-and-trade system for
Electric power, Electric power,
Cap of Cap of
Determined Determined by the by the
Up to 15% of Up to 15% of
No specific No specific
No specific No specific
McCain McCain
GHG emissions GHG emissions from from
industrial, or industrial, or
5,896 5,896
Secretary of Secretary of
submitted submitted
provision provision
provision provision
May 26, 2005 May 26, 2005
multiple multiple sectors sectors
commercial commercial entities entities
mtCO2e for mtCO2e for
Commerce; Commerce; al owances
al owances allowances allowances can can
that emit over that emit over 10,000 10,000
covered covered
provided to covered provided to covered
come from come from
mtCO2e mtCO2e annual yannually; any ; any
sources by sources by
entities at no cost and entities at no cost and
domestic domestic or or
refiner refiner or importeror importer of
of 2010 2010
to the newly to the newly
international international
petroleum petroleum products products
(equivalent (equivalent
established, nonprofit established, nonprofit
offsets; if offsets offsets; if offsets
for transportation use for transportation use
to 2000 to 2000
Climate Climate Change Credit Change Credit
account for 15% account for 15%
that, when that, when
levels), levels),
Corporation, which Corporation, which
of of al owances, allowances, at at
combusted, wil emit combusted, wil emit
reduced by reduced by
may use may use al owanceallowance to to
least 1.5% must least 1.5% must
over 10,000 mtCO2e over 10,000 mtCO2e
the level the level of of
help energy consumers help energy consumers
come from come from
annual yannually; and any ; and any
emissions emissions
with increased prices with increased prices
CRS-12 CRS-12


Bill
Number,
Sponsor,

Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
importer importer or produceror producer
from non-from non-
and provide transition and provide transition
agricultural agricultural
of HFC, PFC, and SF6 of HFC, PFC, and SF6
covered covered
assistance to dislocated assistance to dislocated
sequestration sequestration
that, when used, wil that, when used, wil
sources sources
workers workers and and
emit over emit over 10,000 10,000
communities, communities, among among
mtCO2e mtCO2e
other objectives other objectives
H.R. 2828 H.R. 2828
Cap-and-trade system for Cap-and-trade system for
Electric power, Electric power,
Cap of Cap of
Determined Determined by the by the
Up to 15% of Up to 15% of
No specific No specific
No specific No specific
Inslee Inslee
GHG emissions GHG emissions from from
industrial, or industrial, or
5,896 5,896
Secretary of Secretary of
submitted submitted
provision provision
provision provision
June 9, 2005 June 9, 2005
multiple multiple sectors sectors
commercial commercial entities entities
mtCO2e for mtCO2e for
Commerce; Commerce; al owances
al owances allowances allowances can can
that emit over that emit over 10,000 10,000
covered covered
provided to covered provided to covered
come from come from
mtCO2e mtCO2e annual yannually; any ; any
sources by sources by
entities at no cost and entities at no cost and
domestic domestic or or
refiner refiner or importeror importer of
of 2010 2010
to the newly to the newly
international international
petroleum petroleum products products
(equivalent (equivalent
established, nonprofit established, nonprofit
offsets; if offsets offsets; if offsets
for transportation use for transportation use
to 2000 to 2000
Climate Climate Change Credit Change Credit
account for 15% account for 15%
that, when that, when
levels), levels),
Corporation, which Corporation, which
of of al owances, allowances, at at
combusted, wil emit combusted, wil emit
reduced by reduced by
may use may use al owanceallowance to to
least 1.5% must least 1.5% must
over 10,000 mtCO2e over 10,000 mtCO2e
the level the level of of
help energy consumers help energy consumers
come from come from
annual yannually; and any ; and any
emissions emissions
with increased prices with increased prices
agricultural agricultural
importer importer or produceror producer
from non-from non-
and provide transition and provide transition
sequestration sequestration
of HFC, PFC, and SF6 of HFC, PFC, and SF6
covered covered
assistance to dislocated assistance to dislocated
that, when used, wil that, when used, wil
sources sources
workers workers and and
emit over emit over 10,000 10,000
communities, communities, among among
mtCO2e mtCO2e
other objectives other objectives
H.R. 5049 H.R. 5049
Cap-and-trade system for Cap-and-trade system for
Emissions Emissions from from
Maintains Maintains
20% to electric 20% to electric power, power,
Provides Provides
No specific No specific
No specific No specific
Udal
Udall GHG emissions GHG emissions from from
domestic domestic and and
existing existing
fossil fossil fuel production, fuel production,
additional additional
provision provision
provision provision
Mar. 29, 2006 Mar. 29, 2006
multiple multiple sectors,sectors, with a with a
imported fossil imported fossil fuels; fuels;
emission emission
and energy intensive and energy intensive
al owancesallowances for for
price ceiling of $25 per ton price ceiling of $25 per ton
emissions emissions from from
levels; levels; the the
industries industries
sequestration sequestration
of carbon, indexed to of carbon, indexed to
agricultural, industrial, agricultural, industrial,
number of number of
15% to states for 15% to states for
projects projects
inflation inflation
and manufacturing and manufacturing
al owancesallowances
worker worker transition transition
processes, processes, excluding excluding
distributed distributed
assistance assistance
methane from methane from animals
animals based on based on
emissions emissions
CRS-13 CRS-13


Bill
Number,
Sponsor,

Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
from years from years
5% to states for energy 5% to states for energy
prior to prior to
assistance to low- assistance to low-
enactment, enactment,
income households income households
without without
25% to the Department 25% to the Department
reductions reductions
of Energy to support of Energy to support
in in
energy research and energy research and
subsequent subsequent
development development
years years
10% to the Department 10% to the Department
of State to invest in of State to invest in
low-emissionlow-emission and and
emission-freeemission-free policies policies
in developing countries in developing countries
25% to the Department 25% to the Department
of the Treasury to be of the Treasury to be
sold at auction with the sold at auction with the
proceeds deposited in proceeds deposited in
the Treasury the Treasury
S. 2724 S. 2724
Cap-and-trade system for Cap-and-trade system for
Fossil-fuel-fired Fossil-fuel-fired
2001 CO2 2001 CO2
Al ottedAllotted to covered to covered
Determined Determined by by
No specific No specific
No specific No specific
Carper Carper
CO2 emissions CO2 emissions from from
electric electric generating generating
emission emission
sources based on sources based on
EPA EPA
provision provision
provision provision
May 4, 2006 May 4, 2006
electricity electricity sector; also sector; also
facilities facilities that have a that have a
levels levels by by
previous years emission previous years emission
addresses addresses other air other air
capacity of greater capacity of greater
2015 2015
levels levels
pol utants (mercury, sulfur pol utants (mercury, sulfur
than 25 megawatts than 25 megawatts
dioxide, nitrogen oxide) dioxide, nitrogen oxide)
and generate and generate
electricityelectricity for sale for sale
H.R. 5642 H.R. 5642
Cap-and-trade system for Cap-and-trade system for
Determined Determined by EPA by EPA
1990 GHG 1990 GHG
Determined Determined by the by the
No specific No specific
No specific No specific
EPA to EPA to
Waxman Waxman
GHG GHG
levels levels for for
President based on plan provision President based on plan provision
provision provision
promulgate promulgate
June 20, 2006 June 20, 2006
covered covered
submitted to Congress; submitted to Congress;
additional additional
sources by sources by
sel sell via auction and via auction and
regulations to regulations to
2020; 80% 2020; 80%
distribute to non- distribute to non-
reduce GHG reduce GHG
below 1990 below 1990
covered sources covered sources to to
emissions, emissions,
CRS-14 CRS-14


Bill
Number,
Sponsor,

Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
levels levels by by
achieve specified goals: achieve specified goals:
including including
2050 2050
maximize maximize public public
performance performance
benefit, mitigate energy benefit, mitigate energy
standards, standards,
costs to consumers, costs to consumers,
efficiency efficiency
provide worker provide worker
standards, standards,
transition assistance, transition assistance,
technology technology
among others among others
requirements, requirements,
among others; among others;
directs directs
Department of Department of
Energy to Energy to
promulgate promulgate
renewable renewable
portfolio portfolio
standards standards
S. 3698 S. 3698
Directs Directs EPA to issue EPA to issue
Determined Determined by EPA by EPA
1990 GHG 1990 GHG
Determined Determined by EPA; by EPA;
No specific No specific
No specific No specific
Directs Directs EPA to EPA to
Jeffords Jeffords
regulations to meet GHG regulations to meet GHG
levels levels by
al owances by allowances to covered to covered
provision provision
provision; provision;
issue CO2 issue CO2
July 20, 2006 July 20, 2006
emissions emissions goals; may include goals; may include
2020; 80% 2020; 80%
entities; remaining entities; remaining
al owancesallowances may may
emissions emissions
a market-based approach a market-based approach
below1990 below1990
al owancesallowances to to
be be al ottedallotted to to
standards for standards for
levels levels by by
households, households,
companies that companies that
vehicles vehicles and and
2050 2050
communities, communities, and other and other
experience experience
CO2 emissions CO2 emissions
groups for various groups for various
disproportionate disproportionate
standards for standards for
objectives objectives
impacts from impacts from
new power new power
lower-carbon lower-carbon
plants, create plants, create
economy economy
low-carbon low-carbon
electricity electricity
generation generation
standards and standards and
trading trading
program, program,
promulgate promulgate
CRS-15 CRS-15


Bill
Number,
Sponsor,

Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
electricity electricity
efficiency efficiency
standards, and standards, and
establish establish
renewable renewable
energy energy
portfolio portfolio
standards standards
S. 4039 S. 4039
Cap-and-trade system for Cap-and-trade system for
Determined Determined by EPA by EPA
1990 GHG 1990 GHG
Determined Determined by the by the
No specific No specific
No specific No specific
No specific No specific
Kerry Kerry
GHG emissions GHG emissions
through a rulemaking through a rulemaking
levels levels for for
President; Congress President; Congress
provision provision
provision provision
provision provision
Sept. 29, 2006 Sept. 29, 2006
process process
covered covered
may enact alternative may enact alternative
sources by sources by
plan within one year plan within one year
2020 2020
Source: Prepared by CRS. Prepared by CRS.
CRS-16 CRS-16


Table 3. GHG Emission Reduction Proposals: 110th Congress
Ordered Ordered Chronological yChronologically by Introduced Date by Introduced Date
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
S. 280 S. 280
Cap-and-trade Cap-and-trade
Electric power, Electric power,
1990 GHG 1990 GHG
Determined Determined by EPA by EPA
Up to 15% of Up to 15% of
No specific No specific
No specific provision No specific provision
Lieberman Lieberman
system system for GHG for GHG
industrial, or industrial, or
levels levels for for
submitted submitted
provision provision
Jan. 12, 2007 Jan. 12, 2007
emissions emissions from from
commercial commercial entities that covered entities that covered
al owancesallowances can can
multiple multiple sectors sectors
emit over emit over 10,000 10,000
sources by sources by
come from come from
mtCO2e mtCO2e annual yannually; any ; any
2020, 2020,
domestic domestic or or
refiner refiner or importeror importer of of
reduced by reduced by
international international
petroleum petroleum products for products for
the level the level of of
offsets; if offsets offsets; if offsets
transportation use that, transportation use that,
emissions emissions
account for 15% account for 15%
when combusted, wil when combusted, wil
from non- from non-
of of al owances, allowances, at at
emit over emit over 10,000 10,000
covered covered
least 1.5% must least 1.5% must
mtCO2e mtCO2e annual yannually; and ; and
sources sources
come from come from
any importer any importer or or
agricultural agricultural
producer of HFC, PFC, producer of HFC, PFC,
sequestration sequestration
and SF6 that, when and SF6 that, when
used, wil emitused, wil emit over over
10,000 mtCO2e 10,000 mtCO2e
S. 309 S. 309
Determined Determined by by
Determined Determined by EPA by EPA
1990 GHG 1990 GHG
Determined Determined by EPA by EPA
No specific No specific
No specific No specific
GHG emission GHG emission
Sanders Sanders
EPA, but must be through a rulemaking EPA, but must be through a rulemaking
levels levels for for al
all provision provision
provision provision
standards for standards for
Jan. 16, 2007 Jan. 16, 2007
a market-based a market-based
process process
sources by sources by
vehicles, vehicles, new electric new electric
program for program for
2020 2020
power plants, and an power plants, and an
GHG emissions GHG emissions
energy efficiency energy efficiency
performance performance
standard standard
S. 317 S. 317
Cap-and-trade Cap-and-trade
Fossil-fuel-fired Fossil-fuel-fired electric electric
5% below 5% below
Initial yInitially provided to provided to
Up to 25% of Up to 25% of
No specific No specific
No specific provision No specific provision
Feinstein Feinstein
system system for GHG for GHG
generating facilities generating facilities with with
2001 GHG 2001 GHG
covered entities at covered entities at
required required
provision provision
Jan. 17, 2007 Jan. 17, 2007
emissions emissions from from
a capacity of greater a capacity of greater
levels levels for for
no cost; percentage no cost; percentage
reductions may reductions may
electricity electricity sector sector
than 25 megawatts than 25 megawatts
electric electric
of of al owancesallowances sold sold
be achieved with be achieved with
via auction via auction gradual ygradually
EPA-approved EPA-approved
CRS-17 CRS-17


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
generators by increases: generators by increases: by 2036, by 2036,
international international
2020 2020
100% sold via 100% sold via
credits credits
auction; activities auction; activities
funded by auction funded by auction
revenues include revenues include
technology technology
development and development and
energy efficiency energy efficiency
H.R. 620 H.R. 620
Cap-and-trade Cap-and-trade
Electric power, Electric power,
1990 GHG 1990 GHG
Determined Determined by EPA by EPA
Up to 15% of Up to 15% of
No specific No specific
No specific provision No specific provision
Olver Olver
system system for GHG for GHG
industrial, or industrial, or
levels levels for for
al owanceallowance
provision provision
Jan. 22, 2007 Jan. 22, 2007
emissions emissions from from
commercial commercial entities that covered entities that covered
submission submission can can
multiple multiple sectors sectors
emit over emit over 10,000 10,000
sources by sources by
come from come from
mtCO2e mtCO2e annual yannually; any ; any
2020, 2020,
domestic domestic and/or and/or
refiner refiner or importeror importer of of
reduced by reduced by
international international
petroleum petroleum products for products for
the level the level of of
offsets offsets
transportation use that, transportation use that,
emissions emissions
when combusted, wil when combusted, wil
from non- from non-
emit over emit over 10,000 10,000
covered covered
mtCO2e mtCO2e annual yannually; and ; and
sources sources
any importer any importer or or
producer of HFCs, producer of HFCs,
PFCs, or SF6 that, when PFCs, or SF6 that, when
used, wil emitused, wil emit over over
10,000 mtCO2e 10,000 mtCO2e
S. 485 S. 485
Cap-and-trade Cap-and-trade
Determined Determined by EPA by EPA
1990 GHG 1990 GHG
Determined Determined by the by the
No specific No specific
No specific No specific
No specific provision No specific provision
Kerry Kerry
system system for GHG for GHG
through a rulemaking through a rulemaking
levels levels for for
President; Congress President; Congress
provision provision
provision provision
Feb. 1, 2007 Feb. 1, 2007
emissions emissions
process process
covered covered
may enact may enact
sources by sources by
alternative plan alternative plan
2020 2020
within one year within one year
CRS-18 CRS-18


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
H.R. 1590 H.R. 1590
Cap-and-trade Cap-and-trade
Determined Determined by EPA by EPA
1990 GHG 1990 GHG
Determined Determined by the by the
No specific No specific
No specific No specific
GHG emission GHG emission
Waxman Waxman
system system for GHG for GHG
through a rulemaking through a rulemaking
levels levels for for al
all President; Congress President; Congress
provision provision
provision provision
standards for standards for
Mar. 20, 2007 Mar. 20, 2007
emissions emissions
process process
sources by sources by
may enact may enact
vehicles, vehicles, energy energy
2020 2020
alternative plan alternative plan
efficiency standards, efficiency standards,
within one year within one year
renewable portfolio renewable portfolio
standards standards
H.R. 2069 H.R. 2069
Tax starting at Tax starting at
Manufacturers, Manufacturers,
Tax rate Tax rate
No specific No specific
NA NA
No specific No specific
No specific provision No specific provision
Stark Stark
$10/short ton of $10/short ton of
producers, or producers, or
freeze if CO2 freeze if CO2
provision provision
provision provision
Apr. 26, 2007 Apr. 26, 2007
carbon content carbon content
importers importers who sel who sell a a
emissions emissions do do
in taxable fuels, in taxable fuels,
taxable fuel, which taxable fuel, which
not exceed not exceed
which equates to includes coal, which equates to includes coal,
20% of U.S. 20% of U.S.
approximately approximately
petroleum petroleum and and
1990 CO2 1990 CO2
$2.70/tCO2 $2.70/tCO2
petroleum petroleum products, products,
emissions emissions by by
emissions emissions
and natural gas and natural gas
2020 2020
The rate The rate
increasesincreases $10 $10
per year (in per year (in
nominal dol ars) nominal dol ars)
S. 1766 S. 1766
Cap-and-trade Cap-and-trade
Petroleum Petroleum refineries, refineries,
1990 GHG 1990 GHG
In 2012, 53% of In 2012, 53% of
Unlimited Unlimited use of use of
International International
No specific provision No specific provision
Bingaman Bingaman
system system for GHG for GHG
natural gas processing natural gas processing
levels levels for
al owances al ocated
domestic for allowances allocated domestic offsets; offsets;
reserve reserve
July 11, 2007 July 11, 2007
emissions emissions from from
plants, and imports plants, and imports of of
covered covered
to covered and to covered and
international international
al owancesallowances must must
multiple multiple sectors sectors
petroleum petroleum products, products,
sources by sources by
certain industrial certain industrial
offsets limited offsets limited to to
accompany accompany
with with al owanceallowance
coke, coke, or natural gas; or natural gas;
2020 2020
entities entities
10% of a 10% of a
imports imports of any of any
price ceiling: price ceiling: in in
entities that consume entities that consume
23% 23% al ocatedallocated to to
regulated entity’s regulated entity’s
covered GHG covered GHG
2012, $12/ton, 2012, $12/ton,
more more than 5,000 tons of than 5,000 tons of
states and for states and for
emissions emissions target target
intensive goods intensive goods
increasing by 5% increasing by 5%
coal a year; importers coal a year; importers
sequestration and sequestration and
and primary and primary
annual yannually plus plus
of HFCs, of HFCs, PFC, SF6, PFC, SF6,
early reduction early reduction
products to the products to the
inflation inflation
N2O, or products N2O, or products
activities activities
United States United States
containing such containing such
Least developed Least developed
compounds, and adipic compounds, and adipic
24% are auctioned 24% are auctioned
nations or those nations or those
acid and nitric acid acid and nitric acid
to fund low-income to fund low-income
that contribute that contribute
CRS-19 CRS-19


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
plants, aluminum plants, aluminum
assistance, carbon assistance, carbon
no more no more than than
smelters, smelters, and facilities and facilities
capture and storage, capture and storage,
0.5% of global 0.5% of global
that emit HFCs as a that emit HFCs as a
and adaptation and adaptation
emissions emissions are are
byproduct of HCFC byproduct of HCFC
activities activities
excluded excluded
production production
The percentage The percentage
auctioned increases auctioned increases
steadily, reaching steadily, reaching
53% by 2030 53% by 2030
H.R. 3416 H.R. 3416
Tax on CO2 Tax on CO2
Manufacturers, Manufacturers,
No specific No specific
In first year (2008), In first year (2008),
Al ows Allows for for
No specific No specific
No specific provision No specific provision
Larson Larson
content on fossil content on fossil
producers, or producers, or
provision provision
approximately 76% approximately 76%
domestic domestic offset offset
provision other provision other
Aug. 3, 2007 Aug. 3, 2007
fuels, starting at fuels, starting at
importers importers of coal, of coal,
would support a would support a
projects (as projects (as
than direct than direct
$15/short ton $15/short ton
petroleum, petroleum, and natural and natural
payrol tax rebate payrol tax rebate
prescribed prescribed by the by the
assistance to assistance to
CO2 emissions, CO2 emissions,
gas gas
16% would fund 16% would fund
Secretary of the Secretary of the
affected affected
increasing by increasing by
clean energy clean energy
Treasury) to be Treasury) to be
industries industries
10% 10% annual yannually
technology technology
submitted as tax submitted as tax
(determined by (determined by
plus inflation plus inflation
credits or tax credits or tax
the Secretaries the Secretaries
8% would support 8% would support
refunds refunds
of the Treasury of the Treasury
affected industry affected industry
and Labor) and Labor)
transition assistance transition assistance
(declining to zero by (declining to zero by
2017) 2017)
H.R. 4226 H.R. 4226
Cap-and-trade Cap-and-trade
Electric power, Electric power,
85% of 2006 85% of 2006
Determined Determined by EPA by EPA
Up to 15% of Up to 15% of
The President The President
No specific provision No specific provision
Gilchrest Gilchrest
system system for GHG for GHG
industrial, or industrial, or
GHG levels GHG levels
al owanceallowance
may establish a may establish a
Nov. 15, 2007 Nov. 15, 2007
emissions emissions from from
commercial commercial entities that from covered entities that from covered
submission submission can can
program to program to
multiple multiple sectors sectors
emit over emit over 10,000 10,000
sources, sources,
come from come from
require require
A Carbon A Carbon
mtCO2e mtCO2e annual yannually; ;
reduced by reduced by
domestic domestic and/or and/or
importers importers to pay to pay
Market Efficiency refiners Market Efficiency refiners or importersor importers of of
the level the level of of
international international
the value of the value of
Board may Board may
petroleum petroleum products for products for
emissions emissions
offsets offsets
GHGs emitted GHGs emitted
implement implement cost-cost-
transportation use that, transportation use that,
from non- from non-
during the during the
relief relief measures measures
when combusted, wil when combusted, wil
covered covered
production of production of
emit over emit over 10,000 10,000
goods or goods or
mtCO2e mtCO2e annual yannually; and ; and
services services
CRS-20 CRS-20


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
importers importers or producers or producers
sources by sources by
imported into imported into
of HFCs, of HFCs, PFCs, or SF6 PFCs, or SF6
2020 2020
the United the United
that, when used, wil that, when used, wil
States from States from
emit over emit over 10,000 10,000
countries that countries that
mtCO2e mtCO2e
have no have no
comparable comparable
emission emission
restrictionsrestrictions to to
those of the those of the
United States United States
S. 2191 S. 2191
Cap-and-trade Cap-and-trade
Producers or importers Producers or importers
Emission Emission cap cap
In 2012: 40% of In 2012: 40% of
Up to 15% of Up to 15% of
International International
Low carbon fuel Low carbon fuel
Lieberman Lieberman
system system for GHG for GHG
of petroleum of petroleum or coal-or coal-
for covered for covered
al owances al ocated
al owanceallowances allocated allowance
reserve reserve
standard for standard for
Oct. 18, 2007 Oct. 18, 2007
emissions emissions from from
based liquid or gaseous based liquid or gaseous
sources in sources in
to covered electric to covered electric
requirement requirement may may
al owancesallowances must must
transportation fuels transportation fuels
Ordered
multiple multiple sectors sectors
fuel that emits fuel that emits GHGs, GHGs,
2020 is 4.924 2020 is 4.924
utilities, utilities, industrial industrial
be achieved be achieved
accompany accompany
reported by the
or facilities or facilities that that
bil ion tCO2e bil ion tCO2e
facilities, facilities, and coops and coops
through domestic through domestic
imports imports of any of any
Senate
produce or import produce or import
(19% below (19% below
9% 9% al ocatedallocated to to
offsets; offsets;
covered GHG- covered GHG-
Committee on
more more than 10,000 than 10,000
2005 levels 2005 levels
states for states for
international international
intensive goods intensive goods
Environment
mtCO2e of GHG mtCO2e of GHG
for covered for covered
conservation, extra conservation, extra
offsets can satisfy offsets can satisfy
and primary and primary
and Public
chemicals chemicals annual y annually; ;
sources) sources)
reductions, and reductions, and
an additional 15% an additional 15%
products to the products to the
Works on Dec.
facilities facilities that use more that use more
other activities other activities
United States United States
5, 2007
than 5,000 tons of coal than 5,000 tons of coal
Least developed Least developed
annual yannually; natural gas ; natural gas
11.5% for various 11.5% for various
nations or those nations or those
processing plants or processing plants or
sequestration sequestration
that contribute that contribute
importers importers (including (including
activities activities
no more no more than than
liquid natural gas liquid natural gas
10% 10% al ocatedallocated for for
0.5% of global 0.5% of global
[LNG]); or facilities [LNG]); or facilities that that
electricity electricity consumer consumer
emissions emissions are are
emit more emit more than 10,000 than 10,000
assistance assistance
excluded excluded
mtCO2e of HFCs mtCO2e of HFCs
5% for early 5% for early
annual yannually as a byproduct as a byproduct
reductions reductions
of HFC production of HFC production
0.5% for tribal 0.5% for tribal
governments governments
CRS-21 CRS-21


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
18% (plus an early 18% (plus an early
auction of 6%) auction of 6%)
auctioned to fund auctioned to fund
technology technology
deployment, carbon deployment, carbon
capture and storage, capture and storage,
low-incomelow-income and and
rural assistance, and rural assistance, and
adaptation activities adaptation activities
S. 3036 S. 3036
Cap-and-trade Cap-and-trade
Producers or importers Producers or importers
Emission Emission cap cap
A share of A share of
Up to 15% of Up to 15% of
International International
Low carbon fuel Low carbon fuel
Boxer Boxer
system system for GHG for GHG
of petroleum- or coal- of petroleum- or coal-
for covered for covered
al owances are
al owanceallowances are allowance
reserve reserve
standard for standard for
May 20, 2008 May 20, 2008
emissions emissions from from
based liquid or gaseous based liquid or gaseous
sources in sources in
auctioned for deficit auctioned for deficit
requirement requirement may may
al owancesallowances must must
transportation fuels transportation fuels
S.Amdt. S.Amdt. 48254825
multiple multiple sectors sectors
fuel that emits fuel that emits GHGs, GHGs,
2020 is 4.924 2020 is 4.924
reduction increasing reduction increasing
be achieved be achieved
accompany accompany
(in the nature of
A Carbon A Carbon
or facilities or facilities that that
bil ion tCO2e bil ion tCO2e
from 6.1% in 2012 from 6.1% in 2012
through domestic through domestic
imports imports of any of any
substitute) failed
Market Efficiency produce or import Market Efficiency produce or import
(19% below (19% below
to 15.99% in 2031 to 15.99% in 2031
offsets; offsets;
covered GHG- covered GHG-
a cloture motion
Board may Board may
more more than 10,000 than 10,000
2005 levels 2005 levels
and thereafter and thereafter
international international
intensive goods intensive goods
on June 6, 2008
implement implement cost-cost-
mtCO2e of GHG mtCO2e of GHG
for covered for covered
The “remainder The “remainder
al owancesallowances can can
and primary and primary
relief relief measures measures if if
chemicals chemicals annual y annually; ;
sources) sources)
al owancesallowances” are ” are
satisfy an satisfy an
products to the products to the
necessary necessary
facilities facilities that use more that use more
distributed in 2012 distributed in 2012
additional 15% additional 15%
United States United States
than 5,000 tons of coal than 5,000 tons of coal

(adjusted in future (adjusted in future
Least developed Least developed
annual yannually; natural gas ; natural gas
years) as fol ows: years) as fol ows:
nations or those nations or those
processing plants or processing plants or
that contribute that contribute
importers importers (including (including
38% of 38% of al owancesallowances
no more no more than than
LNG); or facilities LNG); or facilities that that
to covered electric to covered electric
0.5% of global 0.5% of global
emit more emit more than 10,000 than 10,000
utilities, utilities, industrial industrial
emissions emissions are are
mtCO mtCO
facilities, facilities, and co-ops and co-ops
2e of HFCs 2e of HFCs
excluded excluded
annual yannually as a byproduct as a byproduct
10.5% to states for 10.5% to states for
of HFC production of HFC production
conservation, extra conservation, extra
reductions, and reductions, and
other activities other activities
CRS-22 CRS-22


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
7.5% for various 7.5% for various
sequestration sequestration
activities activities
11% 11% al ocatedallocated for for
electricityelectricity and and
natural gas natural gas
consumer assistance consumer assistance
5% for early 5% for early
reductions reductions
0.5% for tribal 0.5% for tribal
governments governments
1% for methane 1% for methane
reduction projectsreduction projects
21.5% (plus an early 21.5% (plus an early
auction of 5%) auction of 5%)
auctioned to fund auctioned to fund
technology technology
deployment, carbon deployment, carbon
capture and storage, capture and storage,
low income and low income and
rural assistance, and rural assistance, and
adaptation activities, adaptation activities,
as as wel well as program as program
management management
H.R. 6186 H.R. 6186
Cap-and-trade Cap-and-trade
Electric power or Electric power or
Emission Emission cap cap
Between 2012 and Between 2012 and
Up to 15% of Up to 15% of
International International
EPA to develop EPA to develop
Markey Markey
system system for GHG for GHG
industrial facilities industrial facilities that that
for covered for covered
2019, 6% of 2019, 6% of
al owanceallowance
reserve reserve
emission emission
June 4, 2008 June 4, 2008
emissions emissions from from
emit over emit over 10,000 10,000
sources in sources in
al owancesallowances would would
requirement requirement may may
al owancesallowances must must
performance performance
multiple multiple sectors sectors
mtCO2e; producers or mtCO2e; producers or
2020 is 4.983 2020 is 4.983
be distributed to be distributed to
be achieved be achieved
accompany accompany
standards for certain standards for certain
importers importers of petroleum of petroleum
bil ion tCO2e bil ion tCO2e
manufacturers of manufacturers of
through domestic through domestic
imports imports of any of any
non-covered entities non-covered entities
or coal-based liquid or coal-based liquid
offsets; offsets;
covered GHG covered GHG
products that, when products that, when
international international
intensive goods intensive goods
CRS-23 CRS-23


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
combusted, wil emit combusted, wil emit
“trade-exposed “trade-exposed
offsets or offsets or
and primary and primary
that exceed 10,000 that exceed 10,000
over 10,000 mtCO2e over 10,000 mtCO2e
primary primary goods” goods”
al owancesallowances can can
products to the products to the
tCO2e per year tCO2e per year
annual yannually; local ; local
Remaining 94% Remaining 94%
satisfy an satisfy an
United States United States
Low-carbon fuel Low-carbon fuel
distribution companies distribution companies
auctioned (100% by auctioned (100% by
additional 15% additional 15%
Least developed Least developed
standard for standard for
that deliver that deliver natural gas natural gas
2020), with 2020), with
nations or those nations or those
transportation fuels transportation fuels
that, when combusted, that, when combusted,
revenues distributed revenues distributed
that contribute that contribute
wil wil emit over 10,000 emit over 10,000
Performance Performance
(in FY2010-FY2019) (in FY2010-FY2019)
no more no more than than
tCO tCO
standard for certain standard for certain
2e 2e annual yannually; ;
as fol ows: as fol ows:
0.5% of global 0.5% of global
producers or importers producers or importers
coal-fired power coal-fired power
emissions emissions are are
of HFCs, of HFCs, PFCs, SFPFCs, SF
58.5% to middle- 58.5% to middle-
plants to capture and plants to capture and
6, or 6, or
excluded excluded
NF NF
and low-income and low-income
geological y geologically sequester sequester
3 that, when used, 3 that, when used,
wil wil emit over 10,000 emit over 10,000
households as tax households as tax
not less than 85% of not less than 85% of
mtCO mtCO
credits and/or credits and/or
their CO2 emissions their CO2 emissions
2e; sites 2e; sites at which at which
CO CO
rebates rebates
2 is geological y 2 is geological y
sequestered sequestered on a on a
12.5% for 12.5% for
commercial commercial scale scale
development and development and
promotion of low-promotion of low-
carbon technology carbon technology
12.5% for energy 12.5% for energy
efficiency programs efficiency programs
4.5% for biological 4.5% for biological
sequestration sequestration
1.5% for worker 1.5% for worker
transition assistance transition assistance
2% for domestic 2% for domestic
adaptation efforts adaptation efforts
1.5% for protection 1.5% for protection
of natural resources of natural resources
1.5% for 1.5% for
international forest international forest
protection protection
CRS-24 CRS-24


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
3.5% for 3.5% for
international clean international clean
technology technology
2% for international 2% for international
adaptation efforts adaptation efforts
H.R. 6316 H.R. 6316
Cap-and-trade Cap-and-trade
Producers or importers Producers or importers
Emission Emission cap cap
In 2012, 5% of the In 2012, 5% of the
Up to 10% of Up to 10% of
International International
EPA to promulgate EPA to promulgate
Doggett Doggett
system system for GHG for GHG
of petroleum- or coal- of petroleum- or coal-
for covered for covered
al owances are
al owanceallowances are allowance
reserve reserve
regulations that regulations that
June 19, 2008 June 19, 2008
emissions emissions from from
based liquid or gaseous based liquid or gaseous
sources in sources in
al ocatedallocated to electric to electric
requirement requirement may may
al owancesallowances must must
address emissions address emissions in in
multiple multiple sectors sectors
fuel that emits fuel that emits GHGs, GHGs,
2020 is 6.087 2020 is 6.087
generators; 10% are generators; 10% are
be achieved be achieved
accompany accompany
uncovered sectors uncovered sectors
A Carbon A Carbon
or facilities or facilities that that
bil ion bil ion
al ocatedallocated to energy to energy
through domestic through domestic
imports imports of any of any
Market Efficiency produce or import Market Efficiency produce or import
mtCO2e mtCO2e
intensive industries intensive industries
offsets; offsets;
covered GHG- covered GHG-
Board may Board may
more more than 10,000 than 10,000
Remaining Remaining
international international
intensive goods intensive goods
implement implement cost-cost-
mtCO2e of GHG mtCO2e of GHG
al owances are
al owancesallowances are allowances can can
and primary and primary
relief relief measures measures
chemicals chemicals annual y annually; ;
auctioned with auctioned with
satisfy an satisfy an
products to the products to the
facilities facilities that use more that use more
revenues used for revenues used for
additional 15% additional 15%
United States United States
than 5,000 tons of coal than 5,000 tons of coal
the fol owing: the fol owing:
Least developed Least developed
annual yannually; natural gas ; natural gas
nations or those nations or those
processing plants or processing plants or
54% for consumer 54% for consumer
that contribute that contribute
importers importers (including (including
assistance (66% of assistance (66% of
no more no more than than
LNG); or, facilities LNG); or, facilities that that
which goes towards which goes towards
0.5% of global 0.5% of global
emit more emit more than 10,000 than 10,000
providing health providing health
emissions emissions are are
mtCO mtCO
insurance coverage, insurance coverage,
2e of HFCs 2e of HFCs
excluded excluded
annual yannually as a byproduct as a byproduct
the remainder the remainder for for
of HFC production of HFC production
rebates and tax rebates and tax
relief) relief)
15% of revenues for 15% of revenues for
deficit reduction deficit reduction
11.4% for 11.4% for
international international
activities activities
CRS-25 CRS-25


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
7.5% for energy 7.5% for energy
efficiency efficiency
7% for natural 7% for natural
resourceresource adaptation adaptation
7% for green energy 7% for green energy
research research
4% for worker 4% for worker
assistance assistance
3% for forestry and 3% for forestry and
agricultural activities agricultural activities
2.7% for states and 2.7% for states and
tribes tribes
2% for 2% for
transportation transportation
alternatives alternatives
1% for early action 1% for early action
0.4% for education 0.4% for education
Source: Prepared by CRS. Prepared by CRS.
CRS-26 CRS-26


Table 4. GHG Emission Reduction Proposals: 111th Congress
Ordered Ordered Chronological yChronologically by Introduced Date by Introduced Date
Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
H.R. 594 H.R. 594
Tax on CO2 Tax on CO2
Manufacturers, Manufacturers,
Tax freezes Tax freezes if if
No specific No specific
NA NA
No specific No specific
No specific provision No specific provision
Stark Stark
content in fossil content in fossil
producers, or producers, or
CO2 CO2
provision provision
provision provision
Jan. 15, 2009 Jan. 15, 2009
fuels, starting at fuels, starting at
importers importers who sel who sell a a
emissions emissions do do
$10/short ton, $10/short ton,
taxable fuel, which taxable fuel, which
not exceed not exceed
increasing by $10 includes coal, increasing by $10 includes coal,
20% of U.S. 20% of U.S.
per year per year
petroleum petroleum and and
1990 CO2 1990 CO2
petroleum petroleum products, products,
emissions emissions by by
and natural gas and natural gas
2020 2020
H.R. 1337 H.R. 1337
Tax on CO2 Tax on CO2
Manufacturers, Manufacturers,
EPA is to EPA is to
In first year: In first year:
Instructs Instructs
Department of Department of
No specific provision No specific provision
Larson Larson
content in fossil content in fossil
producers, or producers, or
establish establish
76% would support 76% would support
Department of Department of
the Treasury the Treasury
Mar. 5, 2009 Mar. 5, 2009
fuels, starting at fuels, starting at
importers importers of coal, of coal,
(within five (within five
a payrol tax rebate a payrol tax rebate
the Treasury (in the Treasury (in
imposes imposes a a
$15/short ton, $15/short ton,
petroleum, petroleum, and natural and natural
years after years after
consultation with consultation with
carbon carbon
increasing by $10 gas increasing by $10 gas
enactment) enactment)
16% would fund 16% would fund
Department of Department of
equivalency fee equivalency fee
each year each year
annual CO annual CO
clean energy clean energy
2 2
Energy) to submit Energy) to submit
on imported on imported
emissions emissions target target
emission emission
technology technology
a report of a report of
carbon-intensive carbon-intensive
is not met is not met
targets in targets in
8% would support 8% would support
qualified offset qualified offset
goods, including goods, including
order to order to
affected industry affected industry
projects but does projects but does
steel, steel, aluminum, aluminum,
reach goal of reach goal of
transition assistance transition assistance
not not al owallow for for
and paper; fee and paper; fee
80% below 80% below
(declining to zero by projects to (declining to zero by projects to
based on based on
2005 CO2 2005 CO2
2017) 2017)
generate tax generate tax
emissions emissions
emissions emissions by by
credits credits
associated with associated with
2050 2050
production of production of
carbon-intensive carbon-intensive
goods goods
H.R. 1666 H.R. 1666
Cap-and-trade Cap-and-trade
Not explicitly defined Not explicitly defined
Target of 4.9 Target of 4.9
Oversight board Oversight board
No specific No specific
No specific No specific
No specific provision No specific provision
Doggett Doggett
system system for GHG for GHG
bil ion bil ion
administers administers auctions provision auctions provision
provision provision
Mar. 23, 2009 Mar. 23, 2009
emissions, emissions, with with
mtCO2e for mtCO2e for
to manage the to manage the
an oversight an oversight
covered covered
al owanceallowance price price
board to manage board to manage
path; precise use of path; precise use of
CRS-27 CRS-27


Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
price path price path
entities by entities by
auction revenues is auction revenues is
between 2012 between 2012
2020 2020
not specified not specified
and 2019 and 2019
H.R. 1683 H.R. 1683
Hybrid cap/tax Hybrid cap/tax
Coal producers, Coal producers,
25% below 25% below
Establishes trust Establishes trust
No specific No specific
Department of Department of
No specific provision No specific provision
McDermott McDermott
system system for GHG for GHG
petroleum petroleum refineries; refineries;
2005 GHG 2005 GHG
fund that would fund that would
provision provision
the Treasury the Treasury
Mar. 24, 2009 Mar. 24, 2009
emissions: emissions:
producers of other producers of other
emissions emissions by by
receive receive
imposes imposes a GHG a GHG
covered persons covered persons
GHG emission GHG emission
2020 2020
appropriations equal appropriations equal
emission emission permit permit
must purchase must purchase
substances (including substances (including
to revenue received to revenue received
equivalency fee equivalency fee
an emission an emission
natural gas, among natural gas, among

by by sel ingselling emission emission
on imported on imported
permit from permit from the the
others); importers others); importers of of
permits permits
carbon-intensive carbon-intensive
Department of Department of
GHG emission GHG emission
Precise Precise use of the use of the
goods, including goods, including
the Treasury the Treasury
substances substances
revenue is not revenue is not
steel, steel, aluminum, aluminum,
when a “GHG when a “GHG
specified specified
and paper and paper
emission emission

substance” is substance” is
produced or produced or
enters the enters the
United States; United States;
permitspermits may not may not
be sold or be sold or
exchanged; price exchanged; price
for emission for emission
permitspermits based on based on
achieving annual achieving annual
emissionemission targets targets
H.R. 1862 H.R. 1862
Cap-and-trade Cap-and-trade
Person who makes Person who makes the the
25% below 25% below
100% of 100% of al owancesallowances
No specific No specific
Department of Department of
No specific provision No specific provision
Van Hol en Van Hol en
system system for CO2 for CO2
first sale in United first sale in United
2005 CO2 2005 CO2
sold via auction; sold via auction;
provision provision
the Treasury the Treasury
Apr. 1, 2009 Apr. 1, 2009
emissions emissions from from
States of coal, oil, States of coal, oil,
emissions emissions by by
proceeds used to proceeds used to
imposes imposes a a
multiple multiple sectors sectors
natural gas, and any natural gas, and any
2020 2020
fund consumer fund consumer
carbon carbon
fossil-fuel-derived fossil-fuel-derived
dividend payments; dividend payments;
equivalency fee equivalency fee
products used as a products used as a
each month, every each month, every
on imported on imported
combustible fuel combustible fuel
person with a Social person with a Social
carbon-intensive carbon-intensive
Security number Security number
goods, including goods, including
CRS-28 CRS-28


Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
would receive would receive an an
steel, steel, aluminum, aluminum,
equal payment equal payment
and paper and paper
H.R. 2380 H.R. 2380
Tax on fossil Tax on fossil
Manufacturers, Manufacturers,
No specific No specific
Tax revenue used Tax revenue used
No specific No specific
Imposes a tax on No specific provision Imposes a tax on No specific provision
Inglis Inglis
fuels, starting at fuels, starting at
producers, or producers, or
provision provision
to offset a to offset a
provision provision
“imported “imported
May 13, 2009 May 13, 2009
$15/short ton of $15/short ton of
importers importers of coal, of coal,
corresponding corresponding
taxable taxable
CO2 emissions, CO2 emissions,
petroleum, petroleum, and natural and natural
reduction in payrol reduction in payrol
products” in products” in
and increasing by and increasing by
gas gas
tax rates (employee, tax rates (employee,
relation to fossil relation to fossil
approximately approximately
employer, employer, and self-and self-
fuels used or the fuels used or the
6.5% each year, 6.5% each year,
employed) employed)
CO2 emissions CO2 emissions
plus cost-of- plus cost-of-
generated during generated during
living living
the product’s the product’s
adjustments adjustments
manufacturing manufacturing
process process
H.R. 2454 H.R. 2454
Cap-and-trade Cap-and-trade
Electricity generators, Electricity generators,
17% below 17% below
Emission Emission al owance allowance
In 2016, In 2016,
Energy-intensive, Energy-intensive,
Establishes a separate Establishes a separate
Waxman-Markey Waxman-Markey
system system for GHG for GHG
various fuel producers various fuel producers
2005 2005
value distributed (as value distributed (as
approximately approximately
trade-exposed trade-exposed
cap-and-trade program cap-and-trade program
May 15, 2009 May 15, 2009
emissions emissions from from
and importers, and importers,
emissions emissions
no-cost no-cost al owancesallowances
27% of an entity’s 27% of an entity’s
industries to industries to
that controls HFC that controls HFC
Reported by the
multiple multiple sectors sectors
fluorinated gas fluorinated gas
from covered from covered
or auction revenue) or auction revenue)
al owanceallowance
receive receive
emissions emissions
Committee on
producers and producers and
sources by sources by
in the fol owing in the fol owing
obligation can be obligation can be
al owancesallowances at no at no
Directs Directs EPA to EPA to
Energy and
importers, importers, geological geological
2020 2020
manner in 2016: manner in 2016:
satisfied with satisfied with
cost until phased cost until phased
establish emission establish emission
Commerce on June
sequestration sites, sequestration sites,
30% (at minimum) 30% (at minimum)
offsets; this offsets; this
out in mid- out in mid-
performance standards performance standards
5, 2009
various industrial various industrial
to electricity to electricity LDCs; LDCs;
percentage percentage
2030s; and 2030s; and
for select sources not for select sources not
sources, sources, and local and local
increases increases to 36% to 36%
Passed the House
0.5% for 0.5% for smal
small EPA to EPA to
covered by the covered by the
distribution companies distribution companies
by 2030 by 2030
on June 26, 2009
electric electric LDCs; 9% LDCs; 9%
promulgate rules promulgate rules
emissions emissions cap cap
(LDCs) that deliver (LDCs) that deliver
to natural gas LDCs; Up to half of an to natural gas LDCs; Up to half of an
establishing an establishing an
For more For more
natural gas natural gas
1.5% to states for 1.5% to states for
entity’s offsets entity’s offsets
international international
information, information, see see
Covered entity Covered entity
home-heating oil home-heating oil
can come can come from from
reserve reserve
CRS Report CRS Report
coverage is phased in by coverage is phased in by
consumers consumers
domestic domestic sources sources
al owanceallowance
R40643, R40643,
category so that category so that al all of of
and up to half and up to half
system system for any for any
Greenhouse Gas
15% directly to low- 15% directly to low-
the above are under the the above are under the
from international from international
covered good of covered good of
Legislation:
income consumers income consumers
cap in 2016 cap in 2016
sources sources
an eligible an eligible
Summary and
13.4% to energy- 13.4% to energy-
industrial sector industrial sector
Analysis of H.R.
intensive, intensive, trade-trade-
Unless otherwise Unless otherwise
2454 as Passed by
exposed industries; exposed industries;
determined determined by by
CRS-29 CRS-29


Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
the House of
up to 3.5% to up to 3.5% to
EPA, covered EPA, covered
from a covered from a covered
Representatives, ,
merchant coal units; entities may use merchant coal units; entities may use
country country
coordinated by coordinated by
2% to petroleum 2% to petroleum
unlimited amount unlimited amount
Exemptions are Exemptions are
Mark Holt and Mark Holt and
refineries refineries plus plus
of international of international
provided for (1) provided for (1)
Gene Whitney Gene Whitney
0.25% for 0.25% for smal
al owancessmall allowances from from
least developed least developed
business refineries; business refineries;
“qualifying “qualifying
countries, (2) countries, (2)
up to 1.5% for up to 1.5% for
programs” programs”
countries that countries that
certain long-term certain long-term
emit less emit less than than
power contract power contract
0.5% of global 0.5% of global
operators operators
GHG emissions, GHG emissions,
7.1% to states to 7.1% to states to
and (3) countries and (3) countries
support renewable support renewable
meeting specific meeting specific
energy and energy energy and energy
criteria criteria
efficiency efforts efficiency efforts
6% to promote 6% to promote
technological technological
advances advances
5% to reduce 5% to reduce
international international
deforestation deforestation
0.2% for deficit 0.2% for deficit
reduction reduction
5% to further other 5% to further other
objectives objectives
S. 1733 S. 1733
Cap-and-trade Cap-and-trade
Electricity generators, Electricity generators,
20% below 20% below
Emission Emission al owance allowance
In 2016, In 2016,
Trade-exposed, Trade-exposed,
Establishes a separate Establishes a separate
Kerry-Boxer Kerry-Boxer
system system for GHG for GHG
various fuel producers various fuel producers
2005 2005
value is distributed value is distributed
approximately approximately
carbon-intensive carbon-intensive
cap-and-trade program cap-and-trade program
Sept. 30, 2009 Sept. 30, 2009
emissions emissions from from
and importers, and importers,
emissions emissions
in the fol owing in the fol owing
35% of an entity’s 35% of an entity’s
industries to industries to
that controls HFCs that controls HFCs
Reported by the
multiple multiple sectors sectors
fluorinated gas fluorinated gas
from covered from covered
manner in 2016: manner in 2016:
al owanceallowance
receive receive
Committee on
producers and producers and
sources by sources by
25.8% (at minimum) 25.8% (at minimum)
submission submission can can
al owancesallowances at no at no
Environment and
importers, importers, geological geological
2020 2020
to electricity to electricity LDCs; LDCs;
comprise comprise offsets; offsets;
cost; in addition, cost; in addition,
Public Works (a
sequestration sites, sequestration sites,
up to 75% of an up to 75% of an
the bil states: the bil states:
various industrial various industrial
entity’s offsets entity’s offsets
CRS-30 CRS-30


Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
“Manager’s
sources, sources, and LDCsand LDCs that that
0.94% for 0.94% for smal
small can come can come from from
“It is the sense “It is the sense
Amendment” in
deliver deliver natural gas natural gas
electric electric LDCs LDCs
domestic domestic sources sources
of the Senate of the Senate
the nature of
Coverage is phased in Coverage is phased in
7.7% to natural gas 7.7% to natural gas
and up to 25% and up to 25%
that this Act wil that this Act wil
substitute) on Nov.
by category so that by category so that al
all LDCs LDCs
from international from international
contain a trade contain a trade
5, 2009
of the above are under of the above are under
sources sources
title that wil title that wil
1.3% to states for 1.3% to states for
the cap in 2016 the cap in 2016
include a border include a border
home-heating oil home-heating oil
Unless otherwise Unless otherwise
measure measure that is that is
consumers consumers
determined determined by by
EPA, unlimited EPA, unlimited
consistent with consistent with
12.9% directly to 12.9% directly to
use of use of
our international our international
low-income low-income
international international
obligations and obligations and
consumers consumers
al owancesallowances from from
designed to designed to
12.1% to energy- 12.1% to energy-
“qualifying “qualifying
work in work in
intensive, intensive, trade-trade-
programs” programs”
conjunction with conjunction with
exposed industries exposed industries
provisions provisions that that
up to 3.0% to up to 3.0% to
al ocateallocate
merchant coal units merchant coal units
al owancesallowances to to
energy-intensive energy-intensive
0.64% to petroleum 0.64% to petroleum
and trade- and trade-
refineries refineries plus plus
exposed exposed
0.86% for 0.86% for smal
small industries” industries”
business refineries business refineries
and 0.43% for and 0.43% for
mediummedium refineries refineries
up to 1.3% for up to 1.3% for
certain long-term certain long-term
power contract power contract
operators operators
5.97% to states to 5.97% to states to
support renewable support renewable
energy and energy energy and energy
efficiency efforts efficiency efforts
CRS-31 CRS-31


Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
5.6% to promote 5.6% to promote
technological technological
advances advances
1.92% for GHG 1.92% for GHG
reductions in the reductions in the
transportation transportation
sector sector
10.3% for deficit 10.3% for deficit
reduction reduction
8% to further other 8% to further other
objectives objectives
S. 2877 S. 2877
Hybrid cap/tax Hybrid cap/tax
Fossil Fossil fuel producers fuel producers
20% below 20% below
Al All carbon shares carbon shares
Offsets are not Offsets are not
Treasury may Treasury may
No specific provision No specific provision
Cantwel
Cantwell system system for CO2 for CO2
(e.g., mines, (e.g., mines, wel s) wells) and and
2005 GHG 2005 GHG
sold in auctions sold in auctions
al owedallowed for for
impose impose fees for fees for
Dec. 11, 2009 Dec. 11, 2009
emissions: emissions:
importers importers who who
levels levels from from al
all Subject to the Subject to the
compliance compliance
the “production the “production
covered entities covered entities
introduce “fossil introduce “fossil
sources by sources by
appropriations appropriations
purposes purposes
process carbon” process carbon”
submit “carbon submit “carbon
carbon” into the United 2020 carbon” into the United 2020
process, process, 75% of the 75% of the
associated with associated with
shares” for CO2 shares” for CO2
States economy States economy
revenue would be revenue would be
commodities commodities
emissions emissions
distributed monthly distributed monthly
imported into imported into
associated with associated with
in non-taxable in non-taxable
the United the United
the use of the the use of the
dividends to dividends to al
all States States
fossil fossil fuels fuels
legal ylegally residing residing
Trading of Trading of
individuals in the individuals in the
carbon shares is carbon shares is
United States United States
restricted restricted to a to a
Subject to the Subject to the
dedicated dedicated
appropriations appropriations
exchange exchange
process, process, 25% could 25% could
established by established by
be used to support be used to support
Treasury Treasury
a myriad of policy a myriad of policy
Price ceiling for Price ceiling for
objectives, objectives, including including
carbon shares: carbon shares:
worker worker transition transition
initial y initially at at
assistance, assistance,
$21/tCO2 in $21/tCO2 in
adaptation, adaptation,
CRS-32 CRS-32


Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
2012; if reached, 2012; if reached,
technology technology
additional shares additional shares
development, development,
made available, made available,
energy efficiency, energy efficiency,
and this revenue and this revenue
biological biological
would support would support
sequestration, and sequestration, and
mitigation from mitigation from
deficit reduction deficit reduction
non-covered non-covered
entities entities
Kerry-Lieberman Kerry-Lieberman
Cap-and-trade Cap-and-trade
Electricity generators, Electricity generators,
17% below 17% below
Emission Emission al owance allowance
In 2016, In 2016,
Trade-exposed, Trade-exposed,
Establishes a separate Establishes a separate
Discussion Discussion Draft Draft
system system for GHG for GHG
various fuel producers various fuel producers
2005 2005
value distributed in value distributed in
approximately approximately
carbon-intensive carbon-intensive
cap-and-trade program cap-and-trade program
May 12, 2010 May 12, 2010
emissions emissions from from
and importers, and importers,
emissions emissions
the fol owing the fol owing
35% of an entity’s 35% of an entity’s
industries to industries to
that controls HFC that controls HFC
(considered by (considered by
multiple multiple sectors sectors
fluorinated gas fluorinated gas
from covered from covered
manner in 2016: manner in 2016:
al owanceallowance
receive receive

many to be the many to be the
producers and producers and
sources by sources by
30% (at minimum) 30% (at minimum)
submission submission can can
al owancesallowances at no at no
primary primary
importers, importers, geological geological
2020 2020
to electric to electric LDCs; LDCs;
comprise comprise offsets; offsets;
cost cost
legislative legislative vehicle vehicle
sequestration sites, sequestration sites,
9% for natural gas 9% for natural gas
up to 75% of an up to 75% of an
EPA to establish EPA to establish
in the Senate at in the Senate at
various industrial various industrial
LDCs; 1.5% to LDCs; 1.5% to
entity’s offsets entity’s offsets
an international an international
the time) the time)
sources, sources, and LDCsand LDCs that that
states for home- states for home-
can come can come from from
reserve reserve
deliver deliver natural gas natural gas
heating oil and heating oil and
domestic domestic sources sources
al owanceallowance
Covered entity Covered entity
propane consumers; and up to 25% propane consumers; and up to 25%
system system for for
coverage is phased in by coverage is phased in by
from international from international
12.3% directly to 12.3% directly to
covered goods covered goods
category so that category so that al all of of
sources sources
low-income low-income
of an eligible of an eligible
the above are under the the above are under the
consumers consumers
Unless otherwise Unless otherwise
industrial sector industrial sector
cap in 2016 cap in 2016
determined determined by by
from a covered from a covered
15% to trade- 15% to trade-
EPA, unlimited EPA, unlimited
country country
exposed industries; exposed industries;
use of use of
up to 0.5% to up to 0.5% to
Exemptions are Exemptions are
international international
merchant coal units; merchant coal units;
provided for (1) provided for (1)
al owancesallowances from from
3.75% to petroleum 3.75% to petroleum
least developed least developed
“qualifying “qualifying
refineries; refineries; up to up to
countries, (2) countries, (2)
programs” programs”
4.5% to long-term 4.5% to long-term
countries that countries that
power contract power contract
emit less emit less than than
operators operators
0.5% of global 0.5% of global
GHG emissions, GHG emissions,
and (3) countries and (3) countries
CRS-33 CRS-33


Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
2% to states to 2% to states to
meeting the meeting the
support renewable support renewable
specific criteria specific criteria
energy and energy energy and energy
efficiency efforts efficiency efforts
4% to promote 4% to promote
technological technological
advances advances
9.2% to support 9.2% to support
transportation transportation
infrastructure and infrastructure and
efficiency efficiency
6.75% for deficit 6.75% for deficit
reduction reduction
1.5% auctioned to 1.5% auctioned to
help mitigate against help mitigate against
high high al owanceallowance
prices prices
Source: Prepared by CRS. Prepared by CRS.
CRS-34 CRS-34


Table 5. GHG Emission Reduction Proposals: 112th Congress
Ordered Ordered Chronological yChronologically by Introduced Date by Introduced Date
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
H.R. 3242 H.R. 3242
Tax on CO2 Tax on CO2
Manufacturers, Manufacturers,
80% 80%
Tax revenue is Tax revenue is
No specific No specific
Border Border
No specific provision No specific provision
Stark Stark
emissions emissions from from
producers, or producers, or
reduction of reduction of
distributed distributed annual yannually
provision provision
adjustment fees adjustment fees
Oct. 24, 2011 Oct. 24, 2011
combustion of combustion of
importers importers who sel coal,
CO2 emission
who sell coal, CO2 emission in pro rata in pro rata
for comparable for comparable
fossil fossil fuels and fuels and
petroleum petroleum and and
levels levels in 1990in 1990 payments to payments to
imported imported
other materials other materials
petroleum petroleum products, products,
individuals with a individuals with a
products products
Rate starts at Rate starts at
natural gas, biomass, natural gas, biomass,
taxpayer taxpayer
$10/short ton of $10/short ton of
municipal solid waste, municipal solid waste,
identification identification
CO2 emissions,
CO and any other organic and any other organic
number number
2 emissions, increasing by $10 materialincreasing by $10 material sold for energy sold for energy
per year until per year until
use use
emissions emissions target target
reached reached
H.R. 6338 H.R. 6338
Hybrid cap/tax Hybrid cap/tax
Coal producers, Coal producers,
Average Average
75% of the permit 75% of the permit
No specific No specific
Unless an Unless an
No specific provision No specific provision
McDermott McDermott
approach on approach on
petroleum petroleum refineries, refineries,
emissions emissions
revenue is used to revenue is used to
provision provision
exporting nation exporting nation
Aug. 2, 2012 Aug. 2, 2012
GHG emissions: GHG emissions:
first first sel er seller of natural of natural
between between
send monthly send monthly
has implemented has implemented
covered entities covered entities
gas, producers and gas, producers and
2015 and 2015 and
dividend payments dividend payments
equivalent equivalent
purchase permits purchase permits
importers importers of GHG of GHG
2019 equal to to taxpayers 2019 equal to to taxpayers
measures, measures,
from the from the
emission emission substances substances
GHG GHG
25% retained for 25% retained for
imports imports of of
Department of Department of
emissions emissions in in
deficit reduction deficit reduction
carbon-intensive carbon-intensive
the Treasury for the Treasury for
2005 by 2020 2005 by 2020
goods wil goods wil be be
expected expected
subject to a subject to a
emissions emissions
fee—determined fee—determined
associated with associated with
by the Secretary by the Secretary
combustion or combustion or
of the of the
use of covered use of covered
Treasury—that Treasury—that
material material (e.g., (e.g.,
is equivalent to is equivalent to
fossil fossil fuels) fuels)
the costs the costs
domestic domestic
producers of producers of
CRS-35 CRS-35


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
Permits Permits cannot cannot
comparable comparable
be sold or be sold or
products incur products incur
traded traded
due to the due to the
Price floor and Price floor and
carbon price carbon price
price ceiling (i.e., price ceiling (i.e.,
Exporters of Exporters of
price col ar), price col ar),
carbon-intensive carbon-intensive
ranges between ranges between
goods may goods may
$6.25 and $18.75 $6.25 and $18.75
receive receive a a
in 2015 in 2015
payment related payment related
to the increased to the increased
costs of inputs costs of inputs
(i.e.,(i.e., fossil fossil fuels) fuels)
subject to the subject to the
fee fee
Source: Prepared by CRS. Prepared by CRS.
CRS-36 CRS-36


Table 6. GHG Emission Reduction Proposals: 113th Congress
Ordered Ordered Chronological yChronologically by Introduced Date by Introduced Date
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
S. 332 S. 332
Upstream tax/fee EPA would impose Upstream tax/fee EPA would impose a feea fee
GHG GHG
60% distributed to 60% distributed to
No specific No specific
A carbon A carbon
Directs Directs EPA to EPA to
Sanders Sanders
on fossil on fossil fuels fuels
on coal, petroleum, on coal, petroleum, and and
emissions emissions at at
EPA to provide EPA to provide
provision provision
equivalency fee equivalency fee
submit report to submit report to
Feb. 14, 2013 Feb. 14, 2013
based on their based on their
natural gas produced or natural gas produced or
80% below 80% below
monthly rebates to monthly rebates to
would apply to would apply to
Congress describing Congress describing
carbon content carbon content
imported into the imported into the
2005 levels 2005 levels
legal residents legal residents
imports imports of of
fugitive methane fugitive methane
United States United States
by 2050 by 2050
40% finances a trust 40% finances a trust
carbon- carbon-
emissions emissions related to related to
fund that distributes fund that distributes
pol ution- pol ution-
leaks in natural gas leaks in natural gas
the fol owing the fol owing
intensive goods intensive goods
infrastructure and infrastructure and
amounts amounts annual yannually
recommending recommending ways ways
for 10 years: for 10 years:
to address these to address these
leaks; directs EPA to leaks; directs EPA to
$7.5 bil ion to $7.5 bil ion to
enter agreement with enter agreement with
mitigate economic mitigate economic
the National the National
impacts of Energy impacts of Energy
Academy of Sciences Academy of Sciences
Intensive Trade Intensive Trade
to study GHG to study GHG
Exposed (EITE) Exposed (EITE)
emissions emissions from non-from non-
industries (25% industries (25%
covered sources covered sources and and
must be energy must be energy
make make
efficiency efficiency
recommendations recommendations for for
investments in EITE investments in EITE
reducing these reducing these
industries) industries)
emissions emissions
$5 bil ion to $5 bil ion to
support the support the
Weatherization Weatherization
AssistanceAssistance Program Program
$1 bil ion for job $1 bil ion for job
training and training and
transition assistance transition assistance
$2 bil ion for $2 bil ion for
Advanced Research Advanced Research
CRS-37 CRS-37


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
Projects Agency- Projects Agency-
Energy Energy
Any remainingAny remaining funds funds
in the trust fund are in the trust fund are
applied to deficit applied to deficit
reduction reduction
Revenues from
the carbon
equivalency fee
on imports:
50% to EPA to 50% to EPA to
distribute to distribute to
state/local programs state/local programs
for adaptation, for adaptation,
infrastructure infrastructure
improvement,improvement, and and
environmental environmental
protectionprotection
50% to the 50% to the
Department of Department of
Transportation to Transportation to
support state/local support state/local
critical critical
infrastructure and infrastructure and
transportation transportation
projects that reduce projects that reduce
vehicular traffic vehicular traffic
S. 2940 S. 2940
Fee on fossil Fee on fossil
Fee applies to coal at Fee applies to coal at
Fee continues Fee revenue used to No specific Fee continues Fee revenue used to No specific
Imports of Imports of
Separate fee for non- Separate fee for non-
Whitehouse Whitehouse
fuels based on fuels based on
mines, mines, petroleum petroleum at at
until national until national
create the American create the American
provisions provisions
carbon-intensive carbon-intensive
CO2 GHG emissions CO2 GHG emissions
Nov. 19, 2014 Nov. 19, 2014
their carbon their carbon
refineries, refineries, natural gas at natural gas at
GHG GHG
Opportunity Fund, Opportunity Fund,
goods subject to goods subject to
at facilities at facilities that (1) that (1)
processors, processors, imported imported
emissions emissions are are
appropriations from appropriations from
a fee— a fee—
are subject to GHG are subject to GHG
CRS-38 CRS-38


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
content and content and
fossil fossil fuels, and facilities fuels, and facilities
80% below 80% below
the fund could the fund could
determined determined by by
reporting reporting
certain facilities certain facilities
that (1) are subject to that (1) are subject to
2005 levels 2005 levels
support the support the
the Secretary of the Secretary of
requirements requirements in 40 in 40
Fee set at Fee set at
GHG reporting GHG reporting
fol owing fol owing
the Treasury— the Treasury—
C.F.R. C.F.R. Part 98 and (2) Part 98 and (2)
$42/ $42/mtCO2
mtCO requirements requirements in 40 in 40
(percentages not (percentages not
that is equivalent that is equivalent
emit moreemit more than than
emissions 2 emissions in in
C.F.R. C.F.R. Part 98 and (2) Part 98 and (2)
specified): specified):
to the difference to the difference
25,000 mtCO2e (not 25,000 mtCO2e (not
2015, increasing 2015, increasing
emit more emit more than 25,000 than 25,000
income assistance income assistance
in (1) costs in (1) costs
including CO2 including CO2
by 2% plus by 2% plus
tons of CO2 tons of CO2 annual yannually
to low-income to low-income
domestic domestic
emissions) emissions)
inflation each inflation each
households facing households facing
producers of producers of
Additional fee for Additional fee for
year year
disproportionate disproportionate
comparable comparable
methane emissions methane emissions
energy costs energy costs
products incur products incur
from fossil from fossil fuel fuel
due to the due to the
tax cut offsets tax cut offsets
extraction, extraction,
carbon price and distribution, and carbon price and distribution, and
Social Security Social Security
(2) the (2) the
combustion combustion
benefit increases benefit increases
comparable comparable
tuition assistance- tuition assistance-
costs (e.g., GHG costs (e.g., GHG
infrastructure infrastructure
fees) imposed by fees) imposed by
improvements improvements
the nation the nation
dividends to dividends to
exporting the exporting the
individuals and individuals and
material material
families families
Exporters of Exporters of
transition assistance transition assistance
carbon-intensive carbon-intensive
to workers to workers in in
goods may goods may
energy-intensive energy-intensive
receive receive a refund a refund
industries industries
related to the related to the
increased costs increased costs
climate climate mitigation mitigation
of inputs (i.e., of inputs (i.e.,
and adaptation and adaptation
fossil fossil fuels) fuels)
national debt national debt
subject to the subject to the
reduction reduction
fee fee
Source: Prepared by CRS. Prepared by CRS.
CRS-39 CRS-39


Table 7. GHG Emission Reduction Proposals: 114th Congress
Ordered Ordered Chronological yChronologically by Introduced Date by Introduced Date
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
H.R. 972 H.R. 972
Hybrid cap/tax Hybrid cap/tax
Coal producers, Coal producers,
Average Average
100% of the permit 100% of the permit
No specific No specific
Unless an Unless an
No specific provision No specific provision
McDermott McDermott
approach on approach on
petroleum petroleum refineries, refineries,
emissions emissions
revenue is used to revenue is used to
provision provision
exporting nation exporting nation
Feb. 13, 2015 Feb. 13, 2015
GHG emissions: GHG emissions:
first first sel er seller of natural of natural
between between
send monthly send monthly
has implemented has implemented
covered entities covered entities
gas, producers and gas, producers and
2016 and 2016 and
dividend payments dividend payments
equivalent equivalent
purchase permits purchase permits
importers importers of GHG of GHG
2020 equal to to taxpayers 2020 equal to to taxpayers
measures, measures,
from the from the
emission emission substances substances
90% of GHG 90% of GHG
imports imports of of
Department of Department of
emissions emissions in in
carbon-intensive carbon-intensive
the Treasury for the Treasury for
2005 by 2020 2005 by 2020
goods wil goods wil be be
expected expected
subject to a subject to a
emissions emissions
fee—determined fee—determined
associated with associated with
by the Secretary by the Secretary
fossil fossil fuel use fuel use
of the of the
Permits Permits cannot cannot
Treasury—that Treasury—that
be sold or be sold or
is equivalent to is equivalent to
traded traded
the costs the costs
domestic domestic
Price floor and Price floor and
producers of producers of
price ceiling, price ceiling,
comparable comparable
ranging between ranging between
products incur products incur
$18.75 and $18.75 and
due to the due to the
$31.25 in 2017, $31.25 in 2017,
carbon price carbon price
increasing each increasing each
year year
Exporters of Exporters of
carbon-intensive carbon-intensive
goods may goods may
receivereceive a a
payment related payment related
to the increased to the increased
costs of inputs costs of inputs
(i.e.,(i.e., fossil fossil fuels) fuels)
CRS-40 CRS-40


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
subject to the subject to the
fee fee
H.R. 2202 H.R. 2202
Imposes an Imposes an
Tax applies to GHG Tax applies to GHG
No specific No specific
Distributes Distributes monthly monthly
A tax refund is A tax refund is
The Secretary of The Secretary of
No specific provision No specific provision
Delaney Delaney
excise tax on excise tax on
emissions emissions associated associated
provisions provisions
energy refund energy refund
provided for provided for
the Treasury the Treasury
May 1, 2015 May 1, 2015
GHG emissions GHG emissions
with fossil with fossil fuel fuel
payments to payments to
GHG emissions GHG emissions
may impose an may impose an
Tax starts at Tax starts at
combustion and GHG combustion and GHG
households based households based
that are captured that are captured
equivalency fee equivalency fee
$30/mtCO $30/mtCO
emissions emissions from facilities from facilities
on the household’s on the household’s
and permanently and permanently
on the person on the person
2e, 2e,
increasing each increasing each
that (1) are subject to that (1) are subject to
gross income gross income level; level;
sequestered sequestered
importing a good importing a good
year by 4% plus year by 4% plus
GHG reporting GHG reporting
households with households with
that would have that would have
inflation inflation
requirements requirements in 40 in 40
incomes incomes up to 200% up to 200%
had an increased had an increased
C.F.R. C.F.R. Part 98 and (2) Part 98 and (2)
above poverty line above poverty line
cost (imposed cost (imposed by by
emit more emit more than 25,000 than 25,000
are eligible, are eligible, but but
the carbon tax) the carbon tax)
tons of GHGs tons of GHGs annual yannually
higher-income higher-income
if the good were if the good were
Directs Directs the Treasury the Treasury
households may households may
produced in the produced in the
Secretary to apply the Secretary to apply the
receive receive scaled scaled
United States United States
tax at natural tax at natural
refunds under refunds under
Exporters of Exporters of
“chokepoints” in the “chokepoints” in the
certain conditions; certain conditions;
carbon-intensive carbon-intensive
supply chain in a way supply chain in a way
payments are based payments are based
goods may goods may
that maximizes that maximizes the the
on estimates on estimates
receive receive
coverage of the tax on coverage of the tax on
(calculated by the (calculated by the
compensation compensation
sources of emission sources of emission
Energy Information Energy Information
for losses for losses
while minimizing while minimizing the the
Administration) Administration) of of
related to the related to the
burden on burden on
loss of purchasing loss of purchasing
tax system tax system
administration and administration and
power due to the power due to the
compliance compliance
carbon tax carbon tax
During the first 10 During the first 10
years of the tax, 2% years of the tax, 2%
of the revenues may of the revenues may
be used to provide be used to provide
assistance to assistance to
workersworkers in the coal in the coal
CRS-41 CRS-41


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
industry displaced industry displaced
by the act by the act
Although not Although not
explicitly tied to the explicitly tied to the
GHG tax revenue, GHG tax revenue,
the bil would the bil would
gradual ygradually reduce the reduce the
highest tax rate on highest tax rate on
corporate income corporate income
from 35% to 28% from 35% to 28%
S. 1548 S. 1548
Fee on fossil Fee on fossil
Fee applies to coal at Fee applies to coal at
Fee continues The bil reduces the Fee continues The bil reduces the
No specific No specific
Imports of Imports of
Separate fee for Separate fee for
Whitehouse Whitehouse
fuels based on fuels based on
mines, mines, petroleum petroleum at at
until national until national
highest tax rate on highest tax rate on
provisions provisions
carbon-intensive carbon-intensive
fluorinated GHGs fluorinated GHGs
June 10, 2015 June 10, 2015
their carbon their carbon
refineries, refineries, natural gas at natural gas at
GHG GHG
corporate income corporate income
goods subject to goods subject to
Separate fee for Separate fee for
content and on content and on
processors, processors, imported imported
emissions emissions are are
from 35% to 29%, from 35% to 29%,
a fee— a fee—
GHGs (other than GHGs (other than
certain facilities certain facilities
fossil fossil fuels, and facilities fuels, and facilities
80% below 80% below
provides an annual provides an annual
determined determined by by
CO2 and fluorinated CO2 and fluorinated
for GHG for GHG
that (1) are subject to that (1) are subject to
2005 levels 2005 levels
tax credit for each tax credit for each
the Secretary of the Secretary of
gas emissions) gas emissions) set at set at
emissions emissions
GHG reporting GHG reporting
individual, provides individual, provides
the Treasury— the Treasury—
$45/mtCO2e in 2016, $45/mtCO2e in 2016,
requirements requirements in 40 in 40
an equivalent benefit an equivalent benefit
that is equivalent that is equivalent
increasing by 2% plus increasing by 2% plus
C.F.R. C.F.R. Part 98 and (2) Part 98 and (2)
to individuals not to individuals not
to the difference to the difference
inflation each year inflation each year
emit more emit more than 25,000 than 25,000
eligible eligible for the tax for the tax
in (1) costs in (1) costs
tons of GHGs tons of GHGs
credit, provides credit, provides up up
domestic domestic
Additional fee for Additional fee for
to $20 bil ion in to $20 bil ion in
producers of producers of
methane emissions methane emissions
annual cost- annual cost-
comparable comparable
from fossil from fossil fuel fuel
mitigation grants to mitigation grants to
products incur products incur
extraction, extraction,
states to be used to states to be used to
due to the due to the
distribution, and distribution, and
assist low-income assist low-income
carbon price, carbon price,
combustion (as combustion (as
and rural and rural
and (2) the and (2) the
determined determined by by
households with households with
comparable comparable
Secretary of the Secretary of the
energy costs and energy costs and
costs (e.g., GHG costs (e.g., GHG
Treasury) Treasury)
support job training support job training
fees) imposed by fees) imposed by
and worker and worker
the nation the nation
assistance programs assistance programs
CRS-42 CRS-42


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
exporting the exporting the
material material
Exporters of Exporters of
energy-intensive energy-intensive
goods may goods may
receivereceive a refund a refund
related to the related to the
increased costs increased costs
of inputs (i.e., of inputs (i.e.,
fossilfossil fuels) fuels)
subject to the subject to the
fee fee
S. 2399 S. 2399
Fee on fossil Fee on fossil
A carbon content fee is A carbon content fee is
Target of 5.8 Target of 5.8
Distributes Distributes
No specific No specific
A carbon A carbon
Establishes the Establishes the
Sanders Sanders
fuels based on fuels based on
imposed imposed on on
bil ion metric bil ion metric
col ected revenue col ected revenue
provisions provisions
equivalency fee equivalency fee
Interagency Climate Interagency Climate
Dec. 10, 2015 Dec. 10, 2015
carbon content carbon content
manufacturers, manufacturers,
tons in 2020, tons in 2020,
from fees in equal from fees in equal
would apply to would apply to
Council to monitor Council to monitor
Fee starts at $15 Fee starts at $15
producers, or producers, or
which is which is
quarterly rebates to quarterly rebates to
imports imports of of
GHG emission GHG emission
mtCO mtCO
importers importers of a carbon of a carbon
equivalent to equivalent to
each citizen or each citizen or
carbon- carbon-
progress progress and issue and issue
2e, 2e,
increasing increasing
pol uting substance, pol uting substance,
20% below 20% below
permanent resident; permanent resident;
pol ution- pol ution-
regulations to help regulations to help
annual yannually by $2 to which includes fossil by $2 to which includes fossil
2005 CO2 2005 CO2
Secretary of the Secretary of the
intensive goods, intensive goods,
meet reduction meet reduction
$4, until reaching fuels; carbon content $4, until reaching fuels; carbon content
emissions emissions
Treasury to issue Treasury to issue
as determined as determined
targets; creates a targets; creates a
$73 in 2035; $73 in 2035;
determined determined by the by the
from fossil from fossil
regulations regulations
by the Secretary by the Secretary
grant program to grant program to
increasing increasing
Secretary of the Secretary of the
fuel fuel
implementing implementing rebate rebate
of the Treasury of the Treasury
promote no-til promote no-til
thereafter by 5% thereafter by 5%
Treasury Treasury
combustion combustion
system; the rebates system; the rebates
farming practices and farming practices and
plus inflation plus inflation
are phased out and are phased out and
a nitrogen uptake a nitrogen uptake
eliminated eliminated for for
pilot program pilot program
households earning households earning
over $100,000/year over $100,000/year
(with annual (with annual
inflation inflation
adjustments); fees adjustments); fees
from imported from imported
materialsmaterials would be would be
CRS-43 CRS-43


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
used to support used to support
other objectives, other objectives,
including energy including energy
efficiency efficiency
H.R. 4283 H.R. 4283
Tax on fossil Tax on fossil
Tax imposed Tax imposed on on
Tax ceases Tax ceases if if
Tax revenue used Tax revenue used
No specific No specific
Imports of Imports of
No specific No specific
McNerney McNerney
fuels based on fuels based on
producers, miners, producers, miners, or or
life-cycle life-cycle
to provide quarterly to provide quarterly
provisions provisions
goods containing goods containing
provisions provisions
Dec. 17, 2015 Dec. 17, 2015
their carbon their carbon
importers importers of fossil fuels of fossil fuels
emissions emissions
dividends to every dividends to every
or produced or produced
content “of the content “of the
from fossil from fossil
person with a Social person with a Social
using fossil using fossil fuels fuels
life cycle life cycle
fuels reach fuels reach
Security number Security number
subject to a subject to a
emissions” emissions”
50% below 50% below
carbon carbon
Tax starts in Tax starts in
2005 levels 2005 levels
equivalency equivalency
2016 at $15 per 2016 at $15 per
(as (as
fee—determined fee—determined
metric metric ton of ton of
determined determined
by the Secretary by the Secretary
CO CO
by the by the
of the of the
2 emissions; 2 emissions;
tax rate tax rate
Secretary of Secretary of
Treasury—that Treasury—that
increases increases
the Treasury the Treasury
is equal to the is equal to the
annual yannually by by
in in
cost that U.S. cost that U.S.
$10/ton; if $10/ton; if
consultation consultation
producers of a producers of a
emission emission targets targets
with EPA) with EPA)
comparable comparable
are met, tax are met, tax

good incur as a good incur as a
ceases to apply ceases to apply
result of the U.S. result of the U.S.
for four years; for four years;
carbon tax; this carbon tax; this
tax reapplies tax reapplies if if
fee expires if the fee expires if the
subsequent subsequent
exporting nation exporting nation
targets not met targets not met
implements implements
equivalent equivalent
measuresmeasures or if or if
an international an international
agreement agreement
requires requires
equivalent equivalent
measures measures
CRS-44 CRS-44


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
Exporters of Exporters of
fossilfossil fuels or fuels or
materialsmaterials that that
used fossilused fossil fuels fuels
during during
production or production or
manufacture may manufacture may
receivereceive a tax a tax
refund related to refund related to
the increased the increased
costs of inputs costs of inputs
(i.e.,(i.e., fossil fossil fuels) fuels)
subject to the subject to the
carbon tax carbon tax
Source: Prepared by CRS. Prepared by CRS.
CRS-45 CRS-45


Table 8. GHG Emission Reduction Proposals: 115th Congress
Ordered Ordered Chronological yChronologically by Introduced Date by Introduced Date
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
H.R. 2014 H.R. 2014
Imposes an Imposes an
Tax applies to GHG Tax applies to GHG
No specific No specific
Distributes Distributes monthly energy refund monthly energy refund
A tax refund is A tax refund is
The Secretary of The Secretary of

Delaney Delaney
excise tax on excise tax on
emissions emissions associated associated
provisions provisions
payments to households, based on payments to households, based on
provided for provided for
the Treasury may the Treasury may
Apr. 6, 2017 Apr. 6, 2017
GHG emissions GHG emissions
with fossil with fossil fuel fuel
the household’s gross income the household’s gross income level;level;
GHG emissions GHG emissions
impose impose an an
Tax starts at Tax starts at
combustion and GHG combustion and GHG
households with incomes up to households with incomes up to
that are captured equivalency fee on that are captured equivalency fee on
$30/metric ton of emissions $30/metric ton of emissions from from
200% above poverty line are 200% above poverty line are
and permanently and permanently
the person the person
CO CO
persons who (1) are persons who (1) are
eligible, eligible, but higher-income but higher-income
sequestered sequestered
importing a good importing a good
2e, increasing 2e, increasing
each year by 4% each year by 4%
subject to GHG subject to GHG
households may receive households may receive scaled scaled
that would have that would have
plus inflation plus inflation
reporting reporting
refunds under certain conditions; refunds under certain conditions;
had an increased had an increased
requirements requirements in 40 in 40
payments are based on estimates payments are based on estimates
cost (imposed cost (imposed by by
C.F.R. C.F.R. Part 98 and (2) Part 98 and (2)
(calculated by the Energy (calculated by the Energy
the carbon tax) if the carbon tax) if
emit more emit more than 25,000 than 25,000
Information Administration) of loss Information Administration) of loss
the good is the good is
tons of GHGs tons of GHGs annual yannually
of purchasing power due to the of purchasing power due to the
produced in the produced in the
Directs Directs the Treasury the Treasury
carbon tax carbon tax
United States United States
Secretary to apply the Secretary to apply the
During the first 10 years of the tax, During the first 10 years of the tax,
Exporters of Exporters of
tax at natural tax at natural
2% of the revenues 2% of the revenues may be used to may be used to
carbon-intensive carbon-intensive
chokepoints in the chokepoints in the
provide assistance to workers provide assistance to workers in in
goods may receive goods may receive
supply chain in a way supply chain in a way
the coal industry displaced by the the coal industry displaced by the
compensation for compensation for
that maximizes that maximizes the the
act act
losses losses related to related to
coverage of the tax on coverage of the tax on
Although not explicitly Although not explicitly tied to the tied to the
the tax system the tax system
sources of emission sources of emission
GHG tax revenue, GHG tax revenue, the bil would the bil would
while minimizing while minimizing the the
gradual ygradually reduce the highest tax reduce the highest tax
burden on burden on
rate on corporate income rate on corporate income from from
administration and administration and
35% to 28% 35% to 28%
compliance compliance
S. 1639 S. 1639
Fee on fossil Fee on fossil fuels Fee applies to coal at fuels Fee applies to coal at
Fee continues Fee continues
The bil reduces the highest tax The bil reduces the highest tax
No specific No specific
Imports of carbon- Imports of carbon-
Separate fee Separate fee
Whitehouse Whitehouse
based on their based on their
mines, mines, petroleum petroleum at at
until national until national
rate on corporate income rate on corporate income from from
provisions provisions
intensive goods intensive goods
for fluorinated for fluorinated
July 26, 2017 July 26, 2017
carbon content carbon content
refineries, refineries, natural gas natural gas
GHG emissions GHG emissions
35% to 29%, provides an annual tax 35% to 29%, provides an annual tax
subject to a fee— subject to a fee—
GHGs GHGs
and certain and certain
at processors, at processors,
credit for each individual, provides credit for each individual, provides
determined determined by the by the
imported fossil imported fossil fuels, fuels,
an equivalent benefit to individuals an equivalent benefit to individuals
Secretary of the Secretary of the
CRS-46 CRS-46


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
facilities facilities for GHG and facilitiesfor GHG and facilities that (1) that (1)
are 80% below are 80% below
not eligible not eligible for the tax credit, for the tax credit,
Treasury—that is Treasury—that is
Fee for facilities Fee for facilities
emissions emissions
are subject to GHG are subject to GHG
2005 levels 2005 levels
provides up to $20 bil ion provides up to $20 bil ion in annual in annual
equivalent to the equivalent to the
that (1) are that (1) are
Fee set at Fee set at
reporting reporting
cost-mitigation grants to states to cost-mitigation grants to states to
difference in (1) difference in (1)
subject to subject to
$49/ton $49/ton CO2
CO requirements requirements in 40 in 40
be used to assist be used to assist low-income and low-income and
costs domestic costs domestic
GHG reporting GHG reporting
emissions 2 emissions in in
C.F.R. C.F.R. Part 98 and (2) Part 98 and (2)
rural households with energy costs rural households with energy costs
producers of producers of
requirements requirements
2018, increasing 2018, increasing
emit more emit more than 25,000 than 25,000
and support job training and and support job training and
comparable comparable
in 40 C.F.R. in 40 C.F.R.
by 2% plus by 2% plus
tons of GHGs tons of GHGs annual yannually
worker worker assistance programs assistance programs
products incur due Part 98 and (2) products incur due Part 98 and (2)
inflation each inflation each
to the carbon to the carbon
emit more emit more than than
year year
price, and (2) the price, and (2) the
25,000 25,000
comparable costs comparable costs
mtCO2e mtCO2e
(e.g., GHG fees) (e.g., GHG fees)
emissions emissions
imposed imposed by the by the
(other than (other than
nation exporting nation exporting
CO2 or CO2 or
the material the material
fluorinated fluorinated
Exporters of Exporters of
GHGs) GHGs)
energy-intensive energy-intensive
Additional fee Additional fee
goods may receive goods may receive
for GHG for GHG
a refund related to a refund related to
emissions emissions
the increased the increased
resulting from resulting from
costs of inputs costs of inputs
venting, flaring, venting, flaring,
(i.e., (i.e., fossil fossil fuels) fuels)
and leaking and leaking
subject to the fee subject to the fee
across the coal, across the coal,
natural gas, and natural gas, and
petroleum petroleum
supply chains supply chains
(as determined (as determined
by Secretary of by Secretary of
the Treasury) the Treasury)
H.R. 3420 H.R. 3420
Fee on fossil Fee on fossil fuels Fee applies to coal at fuels Fee applies to coal at
Fee continues Fee continues
The bil reduces the highest tax The bil reduces the highest tax
No specific No specific
Imports of carbon- Imports of carbon-
Separate fee Separate fee
Blumenauer Blumenauer
based on their based on their
mines, mines, petroleum petroleum at at
until national until national
rate on corporate income rate on corporate income from from
provisions provisions
intensive goods intensive goods
for fluorinated for fluorinated
July 26, 2017 July 26, 2017
carbon content carbon content
refineries, refineries, natural gas natural gas
GHG emissions GHG emissions
35% to 29%, provides an annual tax 35% to 29%, provides an annual tax
subject to a fee— subject to a fee—
GHGs GHGs
and certain and certain
at processors, at processors,
credit for each individual, provides credit for each individual, provides
determined determined by the by the
CRS-47 CRS-47


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
facilities facilities for GHG imported fossilfor GHG imported fossil fuels, fuels,
are 80% below are 80% below
an equivalent benefit to individuals an equivalent benefit to individuals
Secretary of the Secretary of the
Fee for facilities Fee for facilities
emissions emissions
and facilities and facilities that (1) that (1)
2005 levels 2005 levels
not eligible not eligible for the tax credit, for the tax credit,
Treasury—that is Treasury—that is
that (1) are that (1) are
Fee set at Fee set at
are subject to GHG are subject to GHG
provides up to $20 bil ion provides up to $20 bil ion in annual in annual
equivalent to the equivalent to the
subject to subject to
$49/ton $49/ton CO2
CO reporting reporting
cost-mitigation grants to states to cost-mitigation grants to states to
difference in (1) difference in (1)
GHG reporting GHG reporting
emissions 2 emissions in in
requirements requirements in 40 in 40
be used to assist be used to assist low-income and low-income and
costs domestic costs domestic
requirements requirements
2018, increasing 2018, increasing
C.F.R. C.F.R. Part 98 and (2) Part 98 and (2)
rural households with energy costs rural households with energy costs
producers of producers of
in 40 C.F.R. in 40 C.F.R.
by 2% plus by 2% plus
emit more emit more than 25,000 than 25,000
and support job training and and support job training and
comparable comparable
Part 98 and (2) Part 98 and (2)
inflation each inflation each
tons of GHGs tons of GHGs annual yannually
worker worker assistance programs assistance programs
products incur due emit more products incur due emit more than than
year year
to the carbon to the carbon
25,000 25,000
price and (2) the price and (2) the
mtCO2e (other mtCO2e (other
comparable costs comparable costs
than CO2 or than CO2 or
(e.g., GHG fees) (e.g., GHG fees)
fluorinated fluorinated
imposed imposed by the by the
GHGs) GHGs)
nation exporting nation exporting
Additional fee Additional fee
the material the material
for GHG for GHG
Exporters of Exporters of
emissions emissions
energy-intensive energy-intensive
resulting from resulting from
goods may receive goods may receive
venting, flaring, venting, flaring,
a refund related to a refund related to
and leaking and leaking
the increased the increased
across the coal, across the coal,
costs of inputs costs of inputs
natural gas, and natural gas, and
(i.e., (i.e., fossil fossil fuels) fuels)
petroleum petroleum
subject to the fee subject to the fee
supply chains supply chains
(as determined (as determined
by Secretary of by Secretary of
the Treasury) the Treasury)
H.R. 4209 H.R. 4209
Tax on fossil Tax on fossil
Tax applies to Tax applies to
No specific No specific
Establishes a trust fund that would Establishes a trust fund that would
No specific No specific
The Secretary of The Secretary of
No specific No specific
Larson Larson
fuels based on fuels based on
manufacturers, manufacturers,
provision provision
receive receive appropriations equal to tax appropriations equal to tax
provisions provisions
the Treasury the Treasury shal
shall provisions provisions
Nov. 1, 2017 Nov. 1, 2017
their carbon their carbon
producers, or producers, or
revenue received revenue received in the Treasury; in the Treasury;
impose impose a fee on a fee on
content content
importers importers of coal, of coal,
the trust fund would provide the trust fund would provide
imports imports of carbon-of carbon-
Tax set at Tax set at
petroleum, petroleum, and natural and natural
annual funding for the fol owing annual funding for the fol owing
intensive goods; intensive goods;
$49/mtCO $49/mtCO
gas gas
infrastructure programs: infrastructure programs:
the fee wil be the fee wil be
2 in 2 in
CRS-48 CRS-48


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
2019, increasing 2019, increasing
$50 bil ion $50 bil ion (plus the Highway Trust (plus the Highway Trust
equivalent to the equivalent to the
by 2% plus by 2% plus
Fund Fund shortfal shortfall) for highway (80%) ) for highway (80%)
cost that domestic cost that domestic
inflation each inflation each
and mass and mass transit (20%); transit (20%);
producers incur producers incur
year year
$5 bil ion for the Transportation $5 bil ion for the Transportation
due to the carbon due to the carbon
Investments Generating Economic Investments Generating Economic
tax; this fee tax; this fee
Recovery program; Recovery program;
expires if the expires if the
$3 bil ion for aviation; $3 bil ion for aviation;
exporting nation exporting nation
$5 bil ion for passenger rail; $5 bil ion for passenger rail;
implements implements
$6 bil ion for harbors, waterways, $6 bil ion for harbors, waterways,
equivalent equivalent
flood protection, and dams; flood protection, and dams;
measures measures or if an or if an
$6 bil ion for wastewater and $6 bil ion for wastewater and
international international
drinking water; and drinking water; and
agreement agreement
$3 bil ion for broadband $3 bil ion for broadband
requires requires equivalent equivalent
In addition, the trust fund provides: In addition, the trust fund provides:
measures measures
$5 bil ion $5 bil ion annual yannually for worker for worker
transition assistance in the fossil transition assistance in the fossil
fuel industries; and fuel industries; and
12.5% for an energy refund 12.5% for an energy refund
program that would provide program that would provide
monthly payments to households monthly payments to households
with incomeswith incomes up to 150% of up to 150% of
poverty line poverty line
Any remainingAny remaining revenues supports a revenues supports a
consumer tax rebate for consumer tax rebate for
households with incomes up to households with incomes up to
350% of the poverty line 350% of the poverty line
S. 2352 S. 2352
Cap-and-trade Cap-and-trade
Covered materials Covered materials
2020 limit: 2020 limit:
Auction revenue distributed via Auction revenue distributed via
No specific No specific
Unless an Unless an
EPA directed EPA directed
Van Hol en Van Hol en
system system for CO2 for CO2
include crude oil, coal, include crude oil, coal,
permits permits sold sold
quarterly dividend payments to quarterly dividend payments to al
all provisions provisions
exporting nation exporting nation
to promulgate to promulgate
Jan. 29, 2018 Jan. 29, 2018
emissions emissions from from
natural gas, and natural gas, and
equal to 20% equal to 20%
persons with a valid Social Security persons with a valid Social Security
has implemented has implemented
regulations to regulations to
fossil fossil fuel fuel
products derived from products derived from
below 2005 below 2005
number number
equivalent equivalent
address other address other
combustion combustion
measures, measures, imports imports
GHG GHG
CRS-49 CRS-49


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Permits Permits sold sold
these materials these materials used used
2025 limit: 2025 limit:
of carbon- of carbon-
emissions emissions that that
through quarterly for combustion through quarterly for combustion
permits permits sold sold
intensive goods intensive goods
are not are not
auctions by the auctions by the
Covered entities Covered entities
equal to 30% equal to 30%
wil wil be subject to abe subject to a
covered by the covered by the
Department of Department of
include petroleum include petroleum
below 2005 U.S. below 2005 U.S.
fee—determined fee—determined
permit permit
the Treasury the Treasury
refineries refineries and and
CO2 emissions CO2 emissions
by the Secretary of program; by the Secretary of program;
Auction revenue Auction revenue
importers, importers, coal mines coal mines
2030 limit: 2030 limit:
the Treasury— the Treasury—
emissions emissions
distributed to distributed to
and importers, and importers, and and
permits permits sold sold
that is equivalent that is equivalent
“directly “directly
individuals, often individuals, often
natural gas deliverers natural gas deliverers
equal to 40% equal to 40%
to the costs to the costs
attributable to attributable to
described as a described as a
(as reported on Energy (as reported on Energy
below 2005 U.S. below 2005 U.S.
domestic domestic
the production the production
“cap and “cap and
Information Information
CO CO
producers of producers of
of animals for of animals for
2 emissions 2 emissions
dividend” dividend”
Administration Administration Form Form
comparable comparable
food or food food or food
2040 limit: 2040 limit:
approach approach
176) and some 176) and some natural natural
products incur due products” are products incur due products” are
permits permits sold sold
to the carbon to the carbon
excluded excluded
A permit reserve A permit reserve
gas processors gas processors
equal to 60% equal to 60%
price price
and borrowed and borrowed
below 2005 U.S. below 2005 U.S.
permits permits from from
CO CO
Exporters of Exporters of
2 emissions 2 emissions
future years may future years may
carbon-intensive carbon-intensive
be used to help be used to help
goods may receive goods may receive
stabilize auction stabilize auction
compensation for compensation for
prices prices
losses losses related to related to
the permit system the permit system
H.R. 4889 H.R. 4889
Cap-and-trade Cap-and-trade
Covered materials Covered materials
2020 target: 2020 target:
Auction revenue distributed via Auction revenue distributed via
No specific No specific
Unless an Unless an
EPA directed EPA directed
Beyer Beyer
system system for CO2 for CO2
include crude oil, coal, include crude oil, coal,
reduce U.S. reduce U.S.
quarterly dividend payments to quarterly dividend payments to al
all provisions provisions
exporting nation exporting nation
to promulgate to promulgate
Jan. 29, 2018 Jan. 29, 2018
emissions emissions from from
natural gas, and natural gas, and
CO2 emissions CO2 emissions
persons with a valid Social Security persons with a valid Social Security
has implemented has implemented
regulations to regulations to
fossil fossil fuel fuel
products derived from products derived from
to 20% below to 20% below
number number
equivalent equivalent
address other address other
combustion combustion
these materials these materials used used
2005 levels 2005 levels
measures, measures, imports imports
GHG GHG
Permits Permits sold sold
for combustion for combustion
2030 target: 2030 target:
of carbon- of carbon-
emissions emissions that that
through quarterly Covered entities through quarterly Covered entities
40% below 2005 40% below 2005
intensive goods intensive goods
are not are not
auctions by the auctions by the
include petroleum include petroleum
levels levels
wil wil be subject to abe subject to a
covered by the covered by the
Department of Department of
refineries refineries and and
fee—determined fee—determined
permit permit
the Treasury the Treasury
importers, importers, coal mines coal mines
by the Secretary of program; by the Secretary of program;
and importers, and importers, and and
the Treasury— the Treasury—
emissions emissions
natural gas deliverers natural gas deliverers
that is equivalent that is equivalent
“directly “directly
CRS-50 CRS-50


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Auction revenue Auction revenue
(as reported on Energy (as reported on Energy
to the costs to the costs
attributable to attributable to
distributed to distributed to
Information Information
domestic domestic
the production the production
individuals, often individuals, often
Administration Administration Form Form
producers of producers of
of animals for of animals for
described as a described as a
176) and some 176) and some natural natural
comparable comparable
food or food food or food
“cap and “cap and
gas processors gas processors
products incur due products” are products incur due products” are
dividend” dividend”
to the carbon to the carbon
excluded excluded
approach approach
price price
A permit reserve A permit reserve
Exporters of Exporters of
and borrowed and borrowed
carbon-intensive carbon-intensive
permits permits from from
goods may receive goods may receive
future years may future years may
compensation for compensation for
be used to help be used to help
losses losses related to related to
stabilize auction stabilize auction
the permit system the permit system
prices prices
S. 2368 S. 2368
Fee on fossil Fee on fossil fuels Fee applies to coal at fuels Fee applies to coal at
Fee continues Fee continues
The bil provides an annual tax The bil provides an annual tax
No specific No specific
Imports of carbon- Imports of carbon-
Separate fee Separate fee
Whitehouse Whitehouse
based on their based on their
mines, mines, petroleum petroleum at at
until national until national
credit for each individual, provides credit for each individual, provides
provisions provisions
intensive goods intensive goods
for fluorinated for fluorinated
Feb. 5, 2018 Feb. 5, 2018
carbon content carbon content
refineries, refineries, natural gas natural gas
GHG emissions GHG emissions
an equivalent benefit to individuals an equivalent benefit to individuals
subject to a fee— subject to a fee—
GHGs GHGs

and certain and certain
at processors, at processors,
are 80% below are 80% below
not eligible not eligible for the tax credit, for the tax credit,
determined determined by the by the
Separate fee Separate fee
facilities facilities for GHG imported fossilfor GHG imported fossil fuels, fuels,
2005 levels 2005 levels
provides up to $10 bil ion provides up to $10 bil ion in annual in annual
Secretary of the Secretary of the
for GHGs for GHGs
emissions emissions
and facilities and facilities that (1) that (1)
cost-mitigation grants to states to cost-mitigation grants to states to
Treasury—that is Treasury—that is
(other than (other than
Fee set at Fee set at
are subject to GHG are subject to GHG
be used to assist be used to assist low-income and low-income and
equivalent to the equivalent to the
CO2 and CO2 and
$50/ton CO $50/ton CO
reporting reporting
rural households with energy costs rural households with energy costs
difference in (1) difference in (1)
2 2
fluorinated gas fluorinated gas
emissions emissions in in
requirements requirements in 40 in 40
and support job training and and support job training and
costs domestic costs domestic
emissions) emissions) at at
2019, increasing 2019, increasing
C.F.R. C.F.R. Part 98 and (2) Part 98 and (2)
worker worker assistance programs; this assistance programs; this
producers of producers of
facilities facilities that that
by 2% plus by 2% plus
emit more emit more than 25,000 than 25,000
amount increases amount increases annual y
annually comparable comparable
(1) are subject (1) are subject
inflation each inflation each
tons of GHGs tons of GHGs annual yannually
products incur due to GHG products incur due to GHG
year year
to the carbon to the carbon
reporting reporting
price and (2) the price and (2) the
requirements requirements
comparable costs comparable costs
in 40 C.F.R. in 40 C.F.R.
(e.g., GHG fees) (e.g., GHG fees)
Part 98 and (2) Part 98 and (2)
imposed imposed by the by the
emit more emit more than than
25,000 25,000
CRS-51 CRS-51


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
nation exporting nation exporting
mtCO2e mtCO2e
the material the material
emissions emissions
Exporters of Exporters of
Additional fee Additional fee
energy-intensive energy-intensive
for GHG for GHG
goods may receive goods may receive
emissions emissions
a refund related to a refund related to
resulting from resulting from
the increased the increased
venting, flaring, venting, flaring,
costs of inputs costs of inputs
and leaking and leaking
(i.e., (i.e., fossil fossil fuels) fuels)
across the coal, across the coal,
subject to the fee subject to the fee
natural gas, and natural gas, and
petroleum petroleum
supply chains supply chains
(as determined (as determined
by Secretary of by Secretary of
the Treasury) the Treasury)
H.R. 4926 H.R. 4926
Fee on fossil Fee on fossil fuels Fee applies to coal at fuels Fee applies to coal at
Fee continues Fee continues
The bil provides an annual tax The bil provides an annual tax
No specific No specific
Imports of carbon- Imports of carbon-
Separate fee Separate fee
Blumenauer Blumenauer
based on their based on their
mines, mines, petroleum petroleum at at
until national until national
credit for each individual, provides credit for each individual, provides
provisions provisions
intensive goods intensive goods
for fluorinated for fluorinated
Feb. 5, 2018 Feb. 5, 2018
carbon content carbon content
refineries, refineries, natural gas natural gas
GHG emissions GHG emissions
an equivalent benefit to individuals an equivalent benefit to individuals
subject to a fee— subject to a fee—
GHGs GHGs
and certain and certain
at processors, at processors,
are 80% below are 80% below
not eligible not eligible for the tax credit, for the tax credit,
determined determined by the by the
Separate fee Separate fee
facilities facilities for GHG imported fossilfor GHG imported fossil fuels, fuels,
2005 levels 2005 levels
provides up to $10 bil ion provides up to $10 bil ion in annual in annual
Secretary of the Secretary of the
for GHGs for GHGs
emissions emissions
and facilities and facilities that (1) that (1)
cost-mitigation grants to states to cost-mitigation grants to states to
Treasury—that is Treasury—that is
(other than (other than
Fee set at Fee set at
are subject to GHG are subject to GHG
be used to assist be used to assist low-income and low-income and
equivalent to the equivalent to the
CO2 and CO2 and
$50/ton CO $50/ton CO
reporting reporting
rural households with energy costs rural households with energy costs
difference in (1) difference in (1)
2 2
fluorinated gas fluorinated gas
emissions emissions in in
requirements requirements in 40 in 40
and support job training and and support job training and
costs domestic costs domestic
emissions) emissions) at at
2019, increasing 2019, increasing
C.F.R. C.F.R. Part 98 and (2) Part 98 and (2)
worker worker assistance programs; this assistance programs; this
producers of producers of
facilities facilities that that
by 2% plus by 2% plus
emit more emit more than 25,000 than 25,000
amount increases amount increases annual y
annually comparable comparable
(1) are subject (1) are subject
inflation each inflation each
tons of GHGs tons of GHGs annual yannually
products incur due to GHG products incur due to GHG
year year
to the carbon to the carbon
reporting reporting
price and (2) the price and (2) the
requirements requirements
comparable costs comparable costs
in 40 C.F.R. in 40 C.F.R.
(e.g., GHG fees) (e.g., GHG fees)
Part 98 and (2) Part 98 and (2)
imposed imposed by the by the
emit more emit more than than
CRS-52 CRS-52


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
nation exporting nation exporting
25,000 25,000
the material the material
mtCO2e mtCO2e
Exporters of Exporters of
Additional fee Additional fee
energy-intensive energy-intensive
for GHG for GHG
goods may receive goods may receive
emissions emissions
a refund related to a refund related to
resulting from resulting from
the increased the increased
venting, flaring, venting, flaring,
costs of inputs costs of inputs
and leaking and leaking
(i.e., (i.e., fossil fossil fuels) fuels)
across the coal, across the coal,
subject to the fee subject to the fee
natural gas, and natural gas, and
petroleum petroleum
supply chains supply chains
(as determined (as determined
by Secretary of by Secretary of
the Treasury) the Treasury)
H.R. 6463 H.R. 6463
Tax on fossil Tax on fossil
Tax applies to coal at Tax applies to coal at
No specific No specific
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of carbon- Imports of carbon-
Establishes a Establishes a
Curbelo Curbelo
fuels based on fuels based on
mines, mines, petroleum petroleum at at
provision provision
receives receives appropriations equal to appropriations equal to
provisions provisions
intensive goods intensive goods
conditional conditional
July 23, 2018 July 23, 2018
their carbon their carbon
refineries, refineries, natural gas natural gas
Authorizes the Authorizes the
75% of tax revenue deposited in 75% of tax revenue deposited in
subject to a subject to a
moratorium moratorium on on
content and on content and on
at processors, at processors,
Secretary of the Secretary of the
the Treasury; from the Treasury; from this amount, this amount,
border tax— border tax—
Clean Air Clean Air Act Act
emissions emissions from from
imported fossil imported fossil fuels, fuels,
Treasury to Treasury to
the trust fund provides annual the trust fund provides annual
determined determined by the by the
GHG GHG
specific facilities specific facilities
facilities facilities in specified in specified
increase increase the tax the tax
funding for the fol owing funding for the fol owing objectives objectives
Secretary of the Secretary of the
regulations for regulations for
and sources and sources
industrial sectors that industrial sectors that
rate if annual, rate if annual,
(“as provided in appropriations (“as provided in appropriations
Treasury—that is Treasury—that is
stationary stationary
Tax starts at Tax starts at
emit more emit more than 25,000 than 25,000
cumulative cumulative
acts”) between FY2021 and acts”) between FY2021 and
equivalent to the equivalent to the
emissions emissions
$24/metric ton of metric $24/metric ton of metric tons of CO2e tons of CO2e
emission emission
FY2030: FY2030:
costs in costs in
sources (with sources (with
CO2e, increasing
annual y, facilities thatCO annually, facilities that comparable some 2e, increasing
reduction reduction
70% to the Federal 70% to the Federal Highway Trust Highway Trust
comparable
some
by 2% plus by 2% plus
manufacture or import manufacture or import
targets are not targets are not
Fund; Fund;
domestic domestic
exceptions) exceptions)
inflation each inflation each
specified products, and specified products, and
met (e.g., 5,177 met (e.g., 5,177
manufactured manufactured
10% to the states as grants to low- 10% to the states as grants to low-
Creates a Creates a
year year
facilities facilities that combust that combust
mil ion mil ion metric metric
goods (associated goods (associated
National National
biomass biomass with emissions with emissions
income households; income households;
tons tons CO2e in
CO2 with the carbon with the carbon
e in Climate Climate
above 25,000 metric above 25,000 metric
2020) 2020)
5.0% for frequent and chronic 5.0% for frequent and chronic
tax) tax)
Commission Commission to to
tons of CO2e tons of CO2e
coastal flooding mitigation and coastal flooding mitigation and
Exporters of Exporters of
set five-year set five-year
adaptation infrastructure projects; adaptation infrastructure projects;
energy-intensive energy-intensive
emission emission
CRS-53 CRS-53


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
3.0% for displaced energy workers; 3.0% for displaced energy workers;
goods may receive goods may receive
reduction goals reduction goals
2.7% for various energy-related 2.7% for various energy-related
a tax refund a tax refund
between 2025 between 2025
research and development research and development
related to the related to the
and 2050 and and 2050 and
objectives objectives (e.g., carbon capture and (e.g., carbon capture and
increased costs of increased costs of
assess assess the the
storage); storage);
inputs (i.e., inputs (i.e., fossil fossil
effectiveness effectiveness of of
fuels) subject to fuels) subject to
federal policies federal policies
3.0% to support agricultural GHG 3.0% to support agricultural GHG
the tax the tax
in meeting in meeting
sequestration projects; sequestration projects;
these goals these goals
2.5% for the Airport 2.5% for the Airport and Airway and Airway
Trust Fund; Trust Fund;
2.0% for the Abandoned Mine 2.0% for the Abandoned Mine
Reclamation Fund; Reclamation Fund;
1.5% for the Department of Energy 1.5% for the Department of Energy
weatherization program; weatherization program;
0.1% for the Leaking Underground 0.1% for the Leaking Underground
Storage Tank trust fund; Storage Tank trust fund;
0.1% for the Reforestation Trust 0.1% for the Reforestation Trust
Fund; Fund;
0.1% to decrease the 0.1% to decrease the
environmentalenvironmental impact of renewable impact of renewable
energy activities pursuant to energy activities pursuant to
Section 931 of the Energy Policy Section 931 of the Energy Policy
Act of 2005 Act of 2005
H.R. 6928 H.R. 6928
Tax on fossil Tax on fossil
Tax imposed Tax imposed on on
Tax ceases Tax ceases if if
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of goods Imports of goods
No specific No specific
McNerney McNerney
fuels based on fuels based on
producers, miners, producers, miners, or or
emission emission targets targets
receives receives appropriations equal to appropriations equal to
provisions provisions
containing or containing or
provisions provisions
Sept. 27, 2018 Sept. 27, 2018
their carbon their carbon
importers importers of fossil of fossil
are met; targets are met; targets
carbon tax revenues received carbon tax revenues received in in
produced using produced using
content “of the content “of the
fuels fuels
based on life- based on life-
the Treasury the Treasury
fossil fossil fuels subject fuels subject
life cycle life cycle
cycle emission cycle emission
Subject to the appropriations Subject to the appropriations
to a carbon to a carbon
emissions” emissions”
reductions (as reductions (as
process, process, tax revenue used to offset tax revenue used to offset
equivalency fee— equivalency fee—
Tax starts in Tax starts in
determined determined by by
a corresponding reduction in a corresponding reduction in
determined determined by the by the
2020 at $25 per 2020 at $25 per
EPA) from fossil EPA) from fossil
individual income individual income tax rates starting tax rates starting
Secretary of the Secretary of the
CRS-54 CRS-54


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
metric metric ton of ton of
fuels below fuels below
in 2019; remaining revenues would in 2019; remaining revenues would
Treasury—that is Treasury—that is
CO2 emissions; CO2 emissions;
2005 levels: 2005 levels:
be be al ocatedallocated as fol ows: as fol ows:
equal to the cost equal to the cost
tax rate increases tax rate increases

80% used to provide quarterly 80% used to provide quarterly
that U.S. that U.S.
annual yannually by by
2025: 30% 2025: 30%
dividends to every person with a dividends to every person with a
producers of a producers of a
$10/ton; if $10/ton; if
2030: 40% 2030: 40%
Social Security number Social Security number
comparable good comparable good
emission emission targets targets
2035: 50% 2035: 50%
incur as a result incur as a result of of
are met, tax are met, tax
20% used to support a range of 20% used to support a range of
2040: 70% 2040: 70%
the U.S. carbon the U.S. carbon
ceases to apply ceases to apply
objectives, objectives, including: including:
2050: 80% 2050: 80%
tax; this fee tax; this fee
for four years; for four years;
-worker -worker transition assistance transition assistance
expires if the expires if the
tax reapplies tax reapplies if if
-rural energy assistance -rural energy assistance
exporting nation exporting nation
subsequent subsequent
-technology-neutral research -technology-neutral research and and
implements implements
targets not met targets not met
development development
equivalent equivalent
-electric -electric grid innovation grid innovation
measures measures or if an or if an
-infrastructure resilience -infrastructure resilience
international international
-energy efficiency and conservation -energy efficiency and conservation
agreement agreement
requiresrequires equivalent equivalent
measures measures
Exporters of fossil Exporters of fossil
fuels or materials fuels or materials
that used fossil that used fossil
fuels during fuels during
production or production or
manufacture may manufacture may
receivereceive a tax a tax
refund related to refund related to
the increased the increased
costs of inputs costs of inputs
(i.e.,(i.e., fossil fossil fuels) fuels)
subject to the subject to the
carbon tax carbon tax
CRS-55 CRS-55


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
H.R. 7173 H.R. 7173
Fee on fossil Fee on fossil fuels Covered entities fuels Covered entities
Emission Emission
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of carbon- Imports of carbon-
Separate fee Separate fee
Deutch Deutch
based on their based on their
include petroleum include petroleum
reduction reduction
receives receives appropriations equal to appropriations equal to
provisions provisions
intensive products intensive products
for fluorinated for fluorinated
Nov. 27, 2018 Nov. 27, 2018
GHG content GHG content
refineries refineries and and
targets apply to targets apply to
emission emission fee revenuesfee revenues received in received in
subject to a fee— subject to a fee—
GHGs set at GHGs set at
Fee set at Fee set at
importers, importers, coal mines coal mines
fossil fossil fuel fuel
the Treasury; monies the Treasury; monies in the trust in the trust
determined determined by the by the
10% of fee for 10% of fee for
$15/ $15/mtCO2e
mtCO and importers, and importers, natural natural
combustion combustion
fund are available (after fund are available (after
Secretary of the Secretary of the
fossil fossil fuel fuel 2e
emissions emissions in in
gas deliverers, gas deliverers, and and
emissions; emissions;
administrative administrative expenses) to expenses) to
Treasury—that is Treasury—that is
emissions emissions
2019, increasing 2019, increasing
some some natural gas natural gas
starting in 2022, starting in 2022,
provide monthly payments to provide monthly payments to
equivalent to the equivalent to the
Suspends Suspends
by $10 each year by $10 each year
processors processors
annual annual
eligible eligible individuals (i.e.,individuals (i.e., persons persons
excess of (1) GHG excess of (1) GHG
enforcement of enforcement of
reductions of reductions of
with a Social Security number or with a Social Security number or
emissions emissions from from
If emission If emission
certain Clean certain Clean
5% of 2015 5% of 2015
taxpayer identification number); taxpayer identification number);
production production
reduction targets reduction targets
Air Air Act GHG Act GHG
levels levels (253 (253
adults get one share and children adults get one share and children
multiplied multiplied by the by the
are not met, are not met, fee fee
regulations; if regulations; if
mil ion mil ion
receive receive a half-share a half-share
relevant U.S. relevant U.S.
increases increases by $15; by $15;
EPA EPA
mtCO mtCO
emissions emissions fee over fee over
if targets met, fee if targets met, fee
2e) 2e)
determines determines (in (in
between 2022 between 2022
(2) the total (2) the total
does not increase does not increase
2030 and every 2030 and every
and 2029; less and 2029; less
foreign product foreign product
five years five years
Provides a rebate Provides a rebate
stringent stringent
cost of carbon; cost of carbon;
thereafter) thereafter)
for fuels used on for fuels used on
reductions in reductions in
Exporters of Exporters of
emission emission
a farm a farm
subsequent subsequent
carbon-intensive carbon-intensive
targets are not targets are not
years years
products (and products (and
met, the met, the
covered fuels) may covered fuels) may
enforcement
receive enforcement receive a refund a refund
suspension suspension
under an under an
would cease would cease
analogous formula analogous formula
and EPA must and EPA must
promulgate promulgate
regulations to regulations to
reduce reduce
emissionsemissions from from
covered fuels covered fuels
S. 3791 S. 3791
Fee on fossil Fee on fossil fuels Covered entities fuels Covered entities
Emission Emission
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of carbon- Imports of carbon-
Separate fee Separate fee
Coons Coons
based on their based on their
include petroleum include petroleum
reduction reduction
receives receives appropriations equal to appropriations equal to
provisions provisions
intensive products intensive products
for fluorinated for fluorinated
Dec. 19, 2018 Dec. 19, 2018
GHG content GHG content
refineries refineries and and
targets apply to targets apply to
emission emission fee revenuesfee revenues received in received in
subject to a fee— subject to a fee—
GHGs set at GHGs set at
importers, importers, coal mines coal mines
fossil fossil fuel fuel
the Treasury; monies the Treasury; monies in the trust in the trust
determined determined by the by the
10% of fee for 10% of fee for
CRS-56 CRS-56


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Fee set at Fee set at
and importers, and importers, natural natural
combustion combustion
fund are available (after fund are available (after
Secretary of the Secretary of the
fossil fossil fuel fuel
$15/mtCO2e $15/mtCO2e
gas deliverers, gas deliverers, and and
emissions; emissions;
administrative administrative expenses) to expenses) to
Treasury—that is Treasury—that is
emissions emissions
emissions emissions in in
some some natural gas natural gas
starting in 2022, starting in 2022,
provide monthly payments to provide monthly payments to
equivalent to the equivalent to the
Directs Directs EPA to EPA to
2019, increasing 2019, increasing
processors processors
annual annual
eligible eligible individuals (i.e.,individuals (i.e., persons persons
excess of(1) GHG excess of(1) GHG
evaluate evaluate
by $10 each year by $10 each year
reductions of reductions of
with a Social Security number or with a Social Security number or
emissions emissions from from
effectiveness effectiveness of of
If emission If emission
5% of 2015 5% of 2015
taxpayer identification number); taxpayer identification number);
production production
fee program in fee program in
reduction targets reduction targets
levels levels (253 (253
adults get one share and children adults get one share and children
multiplied multiplied by the by the
meeting meeting
are not met, are not met, fee fee
mil ion mil ion
receive receive a half-share a half-share
relevant U.S. relevant U.S.
emission emission
increases increases by $15; by $15;
mtCO2e) mtCO2e)
emissions emissions fee over fee over
reduction reduction
if targets met, fee if targets met, fee
between 2022 between 2022
(2) the total (2) the total
targets; if targets; if
does not increase does not increase
and 2029; this and 2029; this
foreign product foreign product
targets are targets are
equates to a equates to a
cost; cost;
Provides a rebate Provides a rebate
met, EPA may met, EPA may
50% reduction 50% reduction
for fuels used on for fuels used on
Exporters of Exporters of
review review existing existing
in 2030 in 2030
a farm a farm
carbon-intensive carbon-intensive
regulations on regulations on
compared to compared to
products (and products (and
fossil fossil fuel fuel
2005 levels; less 2005 levels; less
covered fuels) may covered fuels) may
combustion combustion
stringent stringent
receive receive a refund a refund
and fluorinated and fluorinated
reductions in reductions in
under an under an
GHG GHG
subsequent subsequent
analogous formula analogous formula
emissions emissions
years years
Source: Prepared by CRS. Prepared by CRS.
CRS-57 CRS-57


Table 9. GHG Emission Reduction Proposals: 116th Congress
Ordered Ordered Chronological yChronologically by Introduced Date by Introduced Date
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
H.R. 763 H.R. 763
Fee on fossil Fee on fossil
Covered entities Covered entities
Emission Emission reduction reduction
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of carbon- Imports of carbon-
Separate fee for Separate fee for
Deutch Deutch
fuels based on fuels based on
include petroleum include petroleum
targets apply to fossil targets apply to fossil
receives receives appropriations equal appropriations equal
provisions provisions
intensive products intensive products
fluorinated GHGs fluorinated GHGs set set
Jan. 24, 2019 Jan. 24, 2019
their GHG their GHG
refineries refineries and and
fuel combustion fuel combustion
to emission to emission fee revenues fee revenues
subject to a fee— subject to a fee—
at 10% of fee for at 10% of fee for
content content
importers, importers, coal coal
emissions; emissions; starting in starting in
received received in the Treasury; in the Treasury;
determined determined by the by the
fossil fossil fuel emissions fuel emissions
Fee set at Fee set at
mines mines and and
2025, annual 2025, annual
monies monies in the trust fund are in the trust fund are
Secretary of the Secretary of the
Suspends Suspends
$15/mtCO $15/mtCO
importers, importers, natural natural
reductions of 5% of reductions of 5% of
available (after administrative available (after administrative
Treasury—that is Treasury—that is
2e 2e
enforcement of enforcement of
emissions emissions in in
gas deliverers, gas deliverers, and and
2016 levels 2016 levels (248 (248
expenses) to provide monthly expenses) to provide monthly
equivalent to the equivalent to the
certain Clean Air Act certain Clean Air Act
2019, increasing 2019, increasing
some some natural gas natural gas
mil ion mil ion mtCO2e) mtCO2e)
payments to eligible payments to eligible individuals individuals
excess of (1) GHG excess of (1) GHG
GHG regulations; if GHG regulations; if
by $10 each year by $10 each year
processors processors
between 2025 and between 2025 and
(i.e., (i.e., persons with a Social persons with a Social
emissions emissions from from
EPA determines EPA determines (in (in
plus inflation plus inflation
2034; annual 2034; annual
Security number or taxpayer Security number or taxpayer
production production
2030 and every five 2030 and every five
reductions of 2.5% of reductions of 2.5% of
identification number); adults identification number); adults
multiplied multiplied by the by the
If emission If emission
years thereafter) years thereafter)
2016 levels 2016 levels between between
get one share and children get one share and children
relevant U.S. relevant U.S.
reduction targets reduction targets
emission emission targets are targets are
2035 and 2050 2035 and 2050
receive receive a half-share a half-share
emissions emissions fee over fee over
are not met, are not met, fee fee
not met, the not met, the
(2) the total foreign (2) the total foreign
increases increases by $15 by $15
Fee ceases if emissions Fee ceases if emissions
enforcement enforcement
product cost of product cost of
plus inflation; if plus inflation; if
from covered fuels from covered fuels
suspension would suspension would
carbon carbon
targets met, targets met, fee fee
decrease decrease to 10% of to 10% of
cease and EPA must cease and EPA must
does not does not
2016 levels 2016 levels (497 (497
Exporters of Exporters of
promulgate promulgate
increase increase
mil ion mil ion mtCO2e) and mtCO2e) and
carbon-intensive carbon-intensive
regulations to reduce regulations to reduce
monthly dividend monthly dividend
products (and products (and
emissions emissions from from
Provides a Provides a
check reach certain check reach certain
covered fuels) may covered fuels) may
covered fuels covered fuels
rebate for fuels rebate for fuels
levels levels
receive receive a refund a refund
used on a farm used on a farm
under an analogous under an analogous
and for fuels or and for fuels or
formula formula
their derivatives their derivatives
used by U.S. used by U.S.
ArmedArmed Forces Forces
S. 940 S. 940
Cap-and-trade Cap-and-trade
Covered materials Covered materials
2020 limit: 2020 limit: permits permits
Auction revenue distributed Auction revenue distributed
No specific No specific
Unless an Unless an
EPA directed to EPA directed to
Van Hol en Van Hol en
system system for CO2 for CO2
include crude oil, include crude oil,
sold equal to 12.5% sold equal to 12.5%
via quarterly dividend via quarterly dividend
provisions provisions
exporting nation exporting nation
promulgate promulgate
Mar. 28, 2019 Mar. 28, 2019
emissions emissions from from
coal, natural gas, coal, natural gas,
below 2005 U.S. CO2 below 2005 U.S. CO2
payments to payments to al all persons with a persons with a
has implemented has implemented
regulations to regulations to
and products and products
emissions emissions
valid Social Security number valid Social Security number
equivalent equivalent
address other GHG address other GHG
CRS-58 CRS-58


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
This proposal is
fossil fossil fuel fuel
derived from these derived from these
2025 limit: 2025 limit: permits permits
measures, measures, imports imports
emissions emissions that are that are
identical to H.R. H.R.
combustion combustion
materials materials used for used for
sold equal to 30% sold equal to 30%
of carbon-intensive of carbon-intensive
not covered by the not covered by the
1960 1960 (Beyer)
Permits Permits sold sold
combustion combustion
below 2005 U.S. CO2 below 2005 U.S. CO2
goods wil goods wil be be
permit program; permit program;
through through
Covered entities Covered entities
emissions emissions
subject to a fee— subject to a fee—
emissions emissions “directly “directly
quarterly quarterly
include petroleum include petroleum
2030 limit: 2030 limit: permits permits
determined determined by the by the
attributable to the attributable to the
auctions by the auctions by the
refineries refineries and and
sold equal to 50% sold equal to 50%
Secretary of the Secretary of the
production of animals production of animals
Department of Department of
importers, importers, coal coal
below 2005 U.S. CO below 2005 U.S. CO
Treasury—that is Treasury—that is
for food or food for food or food
2 2
the Treasury the Treasury
mines mines and and
emissions emissions
equivalent to the equivalent to the
products” are products” are
costs domestic costs domestic
excluded excluded
Auction revenue Auction revenue
importers, importers, and and
2040 limit: 2040 limit: permits permits
producers of producers of
distributed to distributed to
natural gas natural gas
sold equal to 80% sold equal to 80%
comparable comparable
individuals, often individuals, often
deliverers deliverers (as (as
below 2005 U.S. CO2 below 2005 U.S. CO2
products incur due products incur due
described as a described as a
reported on Energy reported on Energy
emissions emissions
to the carbon price to the carbon price
“cap and “cap and
Information Information
dividend” dividend”
Administration Administration
Exporters of Exporters of
approach approach
Form Form 176) and 176) and
carbon-intensive carbon-intensive
some some natural gas natural gas
goods may receive goods may receive
A permit reserve A permit reserve
processors processors
compensation for compensation for
and borrowed and borrowed
losses losses related to related to
permits permits from from
the permit system the permit system
future years may future years may
be used to help be used to help
stabilize auction stabilize auction
prices prices
H.R. 1960 H.R. 1960
Cap-and-trade Cap-and-trade
Covered materials Covered materials
2020 limit: 2020 limit: permits permits
Auction revenue distributed Auction revenue distributed
No specific No specific
Unless an Unless an
EPA directed to EPA directed to
Beyer Beyer
system system for CO2 for CO2
include crude oil, include crude oil,
sold equal to 12.5% sold equal to 12.5%
via quarterly dividend via quarterly dividend
provisions provisions
exporting nation exporting nation
promulgate promulgate
Mar. 28, 2019 Mar. 28, 2019
emissions emissions from from
coal, natural gas, coal, natural gas,
below 2005 U.S. CO2 below 2005 U.S. CO2
payments to payments to al all persons with a persons with a
has implemented has implemented
regulations to regulations to
This proposal is
fossil fossil fuel fuel
and products and products
emissions emissions
valid Social Security number valid Social Security number
equivalent equivalent
address other GHG address other GHG
identical to S. 940S. 940
combustion combustion
derived from these derived from these
2025 limit: 2025 limit: permits permits
measures, measures, imports imports
emissions emissions that are that are
(Van Hol enHollen)
Permits Permits sold sold
materials materials used for used for
sold equal to 30% sold equal to 30%
of carbon-intensive of carbon-intensive
not covered by the not covered by the
through through
combustion combustion
below 2005 U.S. CO below 2005 U.S. CO
goods wil goods wil be be
permit program; permit program;
2 2
quarterly quarterly
Covered entities Covered entities
emissions emissions
subject to a fee— subject to a fee—
emissions emissions “directly “directly
auctions by the auctions by the
include petroleum include petroleum
determined determined by the by the
attributable to the attributable to the
2030 limit: 2030 limit: permits permits
refineries refineries and and
Secretary of the Secretary of the
production of animals production of animals
sold equal to 50% sold equal to 50%
CRS-59 CRS-59


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Department of Department of
importers, importers, coal coal
below 2005 U.S. CO2 below 2005 U.S. CO2
Treasury—that is Treasury—that is
for food or food for food or food
the Treasury the Treasury
mines mines and and
emissions emissions
equivalent to the equivalent to the
products” are products” are
Auction revenue Auction revenue
importers, importers, and and
2040 limit: 2040 limit: permits permits
costs domestic costs domestic
excluded excluded
distributed to distributed to
natural gas natural gas
sold equal to 80% sold equal to 80%
producers of producers of
individuals, often individuals, often
deliverers deliverers (as (as
below 2005 U.S. below 2005 U.S. CO2
comparableCO comparable 2
described as a described as a
reported on Energy reported on Energy
emissions emissions
products incur due products incur due
“cap and “cap and
Information Information
to the carbon price to the carbon price
dividend” dividend”
Administration Administration
Exporters of Exporters of
approach approach
Form Form 176) and 176) and
carbon-intensive carbon-intensive
some some natural gas natural gas
A permit reserve A permit reserve
goods may receive goods may receive
processors processors
and borrowed and borrowed
compensation for compensation for
permits permits from from
losses losses related to related to
future years may future years may
the permit system the permit system
be used to help be used to help
stabilize auction stabilize auction
prices prices
S. 1128 S. 1128
Fee on fossil Fee on fossil
Fee applies to coal Fee applies to coal
Fee continues until Fee continues until
The bil provides an annual tax The bil provides an annual tax
No specific No specific
Imports of carbon- Imports of carbon-
Separate fee for Separate fee for
Whitehouse Whitehouse
fuels based on fuels based on
at mines, at mines, petroleum petroleum
national GHG national GHG
credit for each individual; credit for each individual;
provisions provisions
intensive goods intensive goods
fluorinated GHGs fluorinated GHGs
Apr. 10, 2019 Apr. 10, 2019
their carbon their carbon
at refineries, at refineries, natural natural
emissions emissions are 80% are 80%
provides an equivalent benefit provides an equivalent benefit
subject to a fee— subject to a fee—
Separate fee for Separate fee for
content and content and
gas at processors, gas at processors,
below 2005 levels below 2005 levels
to individuals not eligible to individuals not eligible for for
determined determined by the by the
GHGs (other than GHGs (other than
certain facilities certain facilities
imported fossil imported fossil fuels, fuels,
the tax credit the tax credit
Secretary of the Secretary of the
CO2 and fluorinated CO2 and fluorinated
for GHG for GHG
and facilities and facilities that (1) that (1)
Provides up to $10 bil ion Provides up to $10 bil ion in in
Treasury—that is Treasury—that is
gas emissions) gas emissions) at at
emissions emissions
are subject to GHG are subject to GHG
annual grants to states to be annual grants to states to be
equivalent to the equivalent to the
facilities facilities that (1) are that (1) are
Fee set at Fee set at
reporting reporting
used to used to
difference in (1) difference in (1)
subject to GHG subject to GHG
$52/ton CO $52/ton CO
requirements requirements in 40 in 40
costs domestic costs domestic
2 2
(1) assist low-income (1) assist low-income and rural and rural
reporting reporting
emissions emissions in in
C.F.R. C.F.R. Part 98 and Part 98 and
producers of producers of
households with energy costs, households with energy costs,
requirements requirements in 40 in 40
2020, increasing 2020, increasing
(2) emit more (2) emit more than than
comparable comparable
C.F.R. C.F.R. Part 98 and (2) Part 98 and (2)
by 6% plus by 6% plus
25,000 tons of 25,000 tons of
(2) support job training and (2) support job training and
products incur due products incur due
emit more emit more than than
inflation each inflation each
GHGs GHGs annual yannually
worker worker assistance programs, assistance programs,
to the carbon price to the carbon price
25,000 mtCO2e 25,000 mtCO2e
year year
Fee also applies to Fee also applies to
and and
and (2) the and (2) the
emissions emissions
certain industrial certain industrial
(3) assist the state in climate (3) assist the state in climate
comparable costs comparable costs
Additional fee for Additional fee for
sources, sources, regardless regardless
change adaptation or transition change adaptation or transition
(e.g., GHG fees) (e.g., GHG fees)
imposedimposed by the by the
GHG emissions GHG emissions
CRS-60 CRS-60


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
of their emissions of their emissions
to a low-carbon economy; this to a low-carbon economy; this
nation exporting nation exporting
(described as (described as
output, including output, including
amount increases amount increases annual y
annually the material the material
“associated “associated
aluminum aluminum
Exporters of Exporters of
emissions”) emissions”) resulting resulting
production, HCFC- production, HCFC-
energy-intensive energy-intensive
from venting, flaring, from venting, flaring,
22 production and 22 production and
goods may receive goods may receive
and leaking across and leaking across
HFC-23 destruction, HFC-23 destruction,
a refund related to a refund related to
the coal, natural gas, the coal, natural gas,
and fluorinated gas and fluorinated gas
the increased costs the increased costs
and petroleum and petroleum supply supply
production; this fee production; this fee
of inputs (i.e., of inputs (i.e., fossil fossil
chains (as determined chains (as determined
starts as a starts as a
fuels) subject to fuels) subject to
by Secretary of the by Secretary of the
percentage of the percentage of the
the fee the fee
Treasury) Treasury)
fossil fossil fuel fee and fuel fee and
increasesincreases annual y annually
S. 2284 S. 2284
Fee on fossil Fee on fossil
Covered entities Covered entities
Emission Emission reduction reduction
Establishes a trust fund that Establishes a trust fund that
Directs Directs the the
Imports of carbon- Imports of carbon-
Separate fee for Separate fee for
Coons Coons
fuels based on fuels based on
include petroleum include petroleum
targets apply to targets apply to
receives receives appropriations equal appropriations equal
Department of Department of
intensive products intensive products
fluorinated GHGs fluorinated GHGs set set
July 25, 2019 July 25, 2019
their GHG their GHG
refineries refineries and and
emissions emissions from from
to emission to emission fee revenues fee revenues
Agriculture Agriculture (in (in
subject to a fee— subject to a fee—
at 20% of fee for at 20% of fee for
This proposal is
content content
importers, importers, coal coal
covered fuels; starting covered fuels; starting
col ected in the Treasury; col ected in the Treasury;
consultation with consultation with
determined determined by the by the
fossil fossil fuel emissions fuel emissions
identical to H.R. H.R.
Fee on solid Fee on solid
mines mines and and
in 2020, target equals in 2020, target equals
monies monies in the trust fund (after in the trust fund (after
EPA) to provide EPA) to provide
Secretary of the Secretary of the
4051 4051 (Panetta)
biomass biomass based based
importers, importers, natural natural
90% of 2017 levels, 90% of 2017 levels,
administrative administrative expenses) are expenses) are
payments for payments for
Treasury—that is Treasury—that is
on GHG content gas on GHG content gas wel s wells and and
reaching 59% of 2017 reaching 59% of 2017
al ocatedallocated as fol ows: as fol ows:
farmers farmers and and
equivalent to the equivalent to the
as determined as determined by importers,by importers, solid solid
levels levels in 2025 and 45%in 2025 and 45%
70% to provide monthly 70% to provide monthly
landowners for landowners for
excess of (1) GHG excess of (1) GHG
EPA, using a life- EPA, using a life-
biomass biomass combustion
combustion of 2017 levelsof 2017 levels in 2030; payments to eligiblein 2030; payments to eligible individuals eligible individuals eligible
emissions emissions from from
cycle analysis cycle analysis
facilities facilities
in subsequent years, in subsequent years,
(i.e., (i.e., persons with a Social persons with a Social
sequestration sequestration
production production
the targets are the targets are
activities; directs activities; directs
multiplied multiplied by the by the
Fee set at Fee set at
Security number or taxpayer Security number or taxpayer
reduced by 2.25% of reduced by 2.25% of
Department of Department of
relevant U.S. relevant U.S.
$15/mtCO $15/mtCO
identification number); adults identification number); adults
2e 2e
2017 emission 2017 emission levels levels
Energy to provide Energy to provide
emissions emissions fee over fee over
emissions emissions in in
get one share and children get one share and children
each year each year
payments for payments for
(2) the total foreign (2) the total foreign
2020, increasing 2020, increasing
receive receive a half-share; payments a half-share; payments
direct air capture direct air capture
product cost product cost
by $15 each year by $15 each year
Fee ceases if emissions Fee ceases if emissions
are phased-out at certain are phased-out at certain
from covered fuels from covered fuels
income levels income levels
of CO2 emissions; of CO2 emissions;
Exporters of Exporters of
If emission If emission
equal 10% of 2017 equal 10% of 2017
the funding the funding
carbon-intensive carbon-intensive
reduction targets reduction targets
20% to support existing and 20% to support existing and
emission emission levels levels
source for these source for these
products (and products (and
are not met, are not met, fee fee
new infrastructure funding new infrastructure funding
payments is not payments is not
covered fuels) may covered fuels) may
increases increases by $30; by $30;
programs and other objectives programs and other objectives
specified specified
receive receive a refund a refund
if annual targets if annual targets
CRS-61 CRS-61


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
met, fee does met, fee does
5% to the Department of 5% to the Department of
under an analogous under an analogous
not increase not increase
Energy to support Energy to support
formula formula
Fee col ected Fee col ected
development of GHG development of GHG
quarterly quarterly
mitigation technology and mitigation technology and
related technologies related technologies
5% to support transition 5% to support transition
assistance through new and assistance through new and
existing programs existing programs
H.R. 4051 H.R. 4051
Fee on fossil Fee on fossil
Covered entities Covered entities
Emission Emission reduction reduction
Establishes a trust fund that Establishes a trust fund that
Directs Directs the the
Imports of carbon- Imports of carbon-
Separate fee for Separate fee for
Panetta Panetta
fuels based on fuels based on
include petroleum include petroleum
targets apply to targets apply to
receives receives appropriations equal appropriations equal
Department of Department of
intensive products intensive products
fluorinated GHGs fluorinated GHGs set set
July 25, 2019 July 25, 2019
their GHG their GHG
refineries refineries and and
emissions emissions from from
to emission to emission fee revenues fee revenues
Agriculture Agriculture (in (in
subject to a fee— subject to a fee—
at 20% of fee for at 20% of fee for
This proposal is
content content
importers, importers, coal coal
covered fuels; starting covered fuels; starting
col ected in the Treasury; col ected in the Treasury;
consultation with consultation with
determined determined by the by the
fossil fossil fuel emissions fuel emissions
identical to S. S.
Fee on solid Fee on solid
mines mines and and
in 2020, target equals in 2020, target equals
monies monies in the trust fund (after in the trust fund (after
EPA) to provide EPA) to provide
Secretary of the Secretary of the
2284 2284 (Coons)
biomass biomass based based
importers, importers, natural natural
90% of 2017 levels, 90% of 2017 levels,
administrative administrative expenses) are expenses) are
payments for payments for
Treasury—that is Treasury—that is
on GHG content gas on GHG content gas wel s wells and and
reaching 59% of 2017 reaching 59% of 2017
al ocatedallocated as fol ows: as fol ows:
farmers farmers and and
equivalent to the equivalent to the
as determined as determined by importers,by importers, solid solid
levels levels in 2025 and 45%in 2025 and 45%
70% to provide monthly 70% to provide monthly
landowners for landowners for
excess of (1) GHG excess of (1) GHG
EPA using a life- EPA using a life-
biomass biomass combustion
combustion of 2017 levelsof 2017 levels in 2030; payments to eligiblein 2030; payments to eligible individuals eligible individuals eligible
emissions emissions from from
cycle analysis cycle analysis
facilities facilities
in subsequent years, in subsequent years,
(i.e., (i.e., persons with a Social persons with a Social
sequestration sequestration
production production
the targets are the targets are
activities; directs activities; directs
multiplied multiplied by the by the
Fee set at Fee set at
Security number or taxpayer Security number or taxpayer
reduced by 2.25% of reduced by 2.25% of
Department of Department of
relevant U.S. relevant U.S.
$15/mtCO $15/mtCO
identification number); adults identification number); adults
2e 2e
2017 emission 2017 emission levels levels
Energy to provide Energy to provide
emissions emissions fee over fee over
emissions emissions in in
get one share and children get one share and children
each year each year
payments for payments for
(2) the total foreign (2) the total foreign
2020, increasing 2020, increasing
receive receive a half-share; payments a half-share; payments
direct air capture direct air capture
product cost product cost
by $15 each year by $15 each year
Fee ceases if emissions Fee ceases if emissions
are phased-out at certain are phased-out at certain
from covered fuels from covered fuels
income levels income levels
of CO2 emissions; of CO2 emissions;
Exporters of Exporters of
If emission If emission
equal 10% of 2017 equal 10% of 2017
the funding the funding
carbon-intensive carbon-intensive
reduction targets reduction targets
20% to support existing and 20% to support existing and
emission emission levels levels
source for these source for these
products (and products (and
are not met, are not met, fee fee
new infrastructure funding new infrastructure funding
payments is not payments is not
covered fuels) may covered fuels) may
increases increases by $30; by $30;
programs and other objectives programs and other objectives
specified specified
receive receive a refund a refund
if annual targets if annual targets
5% to the Department of 5% to the Department of
under an analogous under an analogous
met, fee does met, fee does
Energy to support Energy to support
formula formula
not increase not increase
development of GHG development of GHG
mitigation technology and mitigation technology and
related technologies related technologies
CRS-62 CRS-62


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Fee col ected Fee col ected
5% to support transition 5% to support transition
quarterly quarterly
assistance through new and assistance through new and
existing programs existing programs
H.R. 3966 H.R. 3966
Tax on fossil Tax on fossil
Tax imposed Tax imposed on on
GHG emissions GHG emissions target target
Net revenues from Net revenues from the tax on the tax on
No specific No specific
Tax applies to Tax applies to
Separate tax for Separate tax for
Lipinski Lipinski
fuels based on fuels based on
manufacturers, manufacturers,
of 80% below 2005 of 80% below 2005
fossil fossil fuels, imported products, fuels, imported products,
provisions provisions
specific imported specific imported
fluorinated GHGs fluorinated GHGs
July 25, 2019 July 25, 2019
their potential their potential
producers, and producers, and
levels levels
and fluorinated GHGs support and fluorinated GHGs support
products based on products based on
(based on metric (based on metric
CO2 emissions; CO2 emissions;
importers importers of fossil of fossil
the fol owing objectives: the fol owing objectives:
the lesser the lesser of the of the
tons of CO2e) set at tons of CO2e) set at
tax rate set in tax rate set in
fuels at first point of fuels at first point of
10% used to increase 10% used to increase monthly monthly
fossil fossil fuels used fuels used
10% of the tax rate 10% of the tax rate
2020 at 2020 at
sale sale
payments to Social Security payments to Social Security
during production during production
for fossil fuel for fossil fuel
$40/short ton of $40/short ton of
beneficiaries beneficiaries
or the CO2 or the CO2
emissions emissions
CO2, increasing CO2, increasing
emissions emissions
Suspends Suspends
annual yannually by 2.5% by 2.5%
5% 5% al ocatedallocated to the Low- to the Low-
attributable to attributable to
enforcement of enforcement of
plus inflation; if plus inflation; if
Income Home Energy Income Home Energy
their production; their production;
certain Clean Air Act certain Clean Air Act
GHG emissions GHG emissions
Assistance Assistance program program
eligible eligible products products
GHG regulations; if GHG regulations; if
target is met, the target is met, the
1% 1% al ocatedallocated to the to the
based on a list of based on a list of
EPA determines EPA determines (in (in
rate increases rate increases
Department of Energy’s Department of Energy’s
domestic domestic industries
industries 2030 and every five 2030 and every five
only by inflation only by inflation
weatherization assistance weatherization assistance
(prepared by EPA) (prepared by EPA)
years thereafter) that years thereafter) that
program program
that, “in the that, “in the
emission emission targets are targets are
After these After these al ocationsallocations, ,
aggregate, account aggregate, account
not met, the not met, the
remaining revenues remaining revenues used to used to
for 95% of the for 95% of the
enforcement enforcement
reduce the payrol tax rates reduce the payrol tax rates
taxable carbon taxable carbon
suspension would suspension would
that apply to employees that apply to employees and and
substances used in substances used in
cease and EPA must cease and EPA must
the self-employed the self-employed
the United States” the United States”
promulgate promulgate
Exporters may Exporters may
regulations to reduce regulations to reduce
receive receive a refund a refund
emissions emissions from from
for fossil fuels and for fossil fuels and
covered fuels covered fuels
any other product any other product
with increased with increased
costs attributable costs attributable
to the new tax to the new tax
CRS-63 CRS-63


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
H.R. 4058 H.R. 4058
Tax on fossil Tax on fossil
Tax imposed Tax imposed on on
Emission Emission reduction reduction
Tax revenue supports the Tax revenue supports the
No specific No specific
Imports of carbon- Imports of carbon-
Establishes a Establishes a
Rooney Rooney
fuels based on fuels based on
coal at coal mines coal at coal mines
schedule for covered schedule for covered
fol owing objectives: fol owing objectives:
provisions provisions
intensive goods intensive goods
conditional conditional
July 25, 2019 July 25, 2019
their potential their potential
and importers, and importers,
emissions emissions starts in starts in
52.5% to offset a reduction in 52.5% to offset a reduction in
subject to a border subject to a border
moratorium moratorium on on
GHG emissions, GHG emissions,
petroleum petroleum products products
2021 at 5,000 2021 at 5,000
payrol tax rates that apply to payrol tax rates that apply to
tax—determined tax—determined
Clean Air Clean Air Act GHG Act GHG
GHG emissions GHG emissions
at refineries at refineries and and
mmtCO2e; the annual mmtCO2e; the annual
employees, employees, employers,employers, and and
by the Secretary of by the Secretary of
regulations for regulations for
from specific from specific
importers, importers, and and
emission emission schedule is schedule is
self-employed self-employed persons persons
the Treasury—that the Treasury—that
stationary emissions stationary emissions
industrial industrial
natural gas at natural gas at
cumulative, reaching cumulative, reaching
is equivalent to the is equivalent to the
sources (with some sources (with some
sources, sources, and and
processors processors or at or at
49,000 mmtCO 49,000 mmtCO
7.5% to provide a payment to 7.5% to provide a payment to
2e in 2e in
costs in costs in
exceptions) exceptions)
GHG emissions GHG emissions
point of sale for point of sale for
2031; assuming annual 2031; assuming annual
Social Security beneficiaries Social Security beneficiaries
comparable comparable
Creates a credit Creates a credit
from specific from specific
combustion combustion
emission emission levels levels
7.5% to provide block grants 7.5% to provide block grants
domestic domestic
system, system, which phases which phases
products products
Tax imposed Tax imposed on on
fol owed fol owed this this
to states to offset higher to states to offset higher
manufactured manufactured
out after five years, out after five years,
Tax rate set in Tax rate set in
facilities—in facilities—in specific specific
decreasing schedule, decreasing schedule,
energy costs for low-income energy costs for low-income
goods (associated goods (associated
for persons making for persons making
2021 at 2021 at
industrial source industrial source
covered emissions covered emissions
households households
with the carbon with the carbon
payments under payments under
$30/mtCO $30/mtCO
would decrease would decrease to to
tax) tax)
2e, 2e,
categories—that categories—that
7.5% to support climate 7.5% to support climate
existing state GHG existing state GHG
increasing increasing
emit more emit more than than
4,200 mmtCO2e 4,200 mmtCO2e in in
adaptation, carbon adaptation, carbon
Exporters of Exporters of
reduction programs reduction programs
annual yannually by 5% by 5%
25,000 mtCO 25,000 mtCO
2031 2031
2e per 2e per
sequestration, energy sequestration, energy
energy-intensive energy-intensive
plus inflation; if plus inflation; if
year year
efficiency, and research and efficiency, and research and
goods may receive goods may receive
covered covered
Tax imposed Tax imposed on on
development programs development programs
a tax refund a tax refund
emissions emissions do not facilities do not facilities that that
related to the related to the
meet emission meet emission
manufacture or manufacture or
increased costs of increased costs of
reduction reduction
import specified import specified
inputs (i.e., inputs (i.e., fossil fossil
schedule, the tax schedule, the tax products or products or
fuels) subject to fuels) subject to
rate increases by rate increases by
combust biomass combust biomass
the tax the tax
an additional $3 an additional $3
with emissions with emissions
above 25,000 above 25,000
mtCO2e mtCO2e
H.R. 4142 H.R. 4142
Tax on fossil Tax on fossil
Tax applies to Tax applies to
No specific provisions No specific provisions
Establishes a trust fund that Establishes a trust fund that
No specific No specific
The Secretary of The Secretary of
No specific No specific
Larson Larson
fuels based on fuels based on
manufacturers, manufacturers,
would receive would receive appropriations appropriations
provisions provisions
the Treasury the Treasury shal
shall provisions provisions
Aug. 2, 2019 Aug. 2, 2019
their carbon their carbon
producers, or producers, or
equal to tax revenue received equal to tax revenue received
impose impose a fee on a fee on
content content
importers importers of coal, of coal,
in the Treasury; the trust fund in the Treasury; the trust fund
imports imports of carbon-of carbon-
Tax set at Tax set at
petroleum, petroleum, and and
would provide annual funding would provide annual funding
intensive goods; intensive goods;
$52/mtCO $52/mtCO
natural gas natural gas
the fee wil be the fee wil be
2 in 2 in
CRS-64 CRS-64


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
2020, increasing 2020, increasing
for the fol owing for the fol owing infrastructure infrastructure
equivalent to the equivalent to the
by 6% plus by 6% plus
programs: programs:
cost that domestic cost that domestic
inflation each inflation each
$61 bil ion $61 bil ion (plus the Highway (plus the Highway
producers incur producers incur
year year
Trust Fund Trust Fund shortfal shortfall) for ) for
due to the carbon due to the carbon
highway (80%) and mass transit highway (80%) and mass transit
tax; this fee expires tax; this fee expires
(20%); (20%);
if the exporting if the exporting
nation implements nation implements
$6.4 bil ion for the $6.4 bil ion for the
equivalent equivalent
Transportation Investments Transportation Investments
measures measures or if an or if an
Generating Economic Generating Economic
international international
Recovery program; Recovery program;
agreement requires agreement requires
$4 bil ion for aviation; $4 bil ion for aviation;
equivalent equivalent
$6.6 bil ion for passenger rail; $6.6 bil ion for passenger rail;
measures measures
$8 bil ion for harbors, $8 bil ion for harbors,
waterways, flood protection, waterways, flood protection,
and dams; and dams;
$8.4 bil ion for wastewater and $8.4 bil ion for wastewater and
drinking water; drinking water;
$4 bil ion for broadband; $4 bil ion for broadband;
$3 bil ion for education $3 bil ion for education
infrastructure; infrastructure;
$1.5 bil ion for health care $1.5 bil ion for health care
research and infrastructure; research and infrastructure;
$2 bil ion for the Public $2 bil ion for the Public
Housing Capital Fund; Housing Capital Fund;
$4.4 bil ion for Department of $4.4 bil ion for Department of
Energy research and Energy research and
development programs; and development programs; and
$1.5 bil ion for Department of $1.5 bil ion for Department of
AgricultureAgriculture climate-related climate-related
research research
CRS-65 CRS-65


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
In addition, the trust fund In addition, the trust fund
provides: provides:
$7 bil ion $7 bil ion annual yannually for worker for worker
and community transition and community transition
assistance, and assistance, and
12.5% for an energy refund 12.5% for an energy refund
program that would provide program that would provide
monthly payments to monthly payments to
households with incomes up households with incomes up
to 150% of poverty line to 150% of poverty line
Any remainingAny remaining revenues revenues
support a consumer tax rebate support a consumer tax rebate
for households with incomes for households with incomes
up to 350% of the poverty line up to 350% of the poverty line
H.R. 4520 H.R. 4520
Tax on fossil Tax on fossil
Tax imposed Tax imposed on on
Emission Emission reduction reduction
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of carbon- Imports of carbon-
Establishes a Establishes a
Fitzpatrick Fitzpatrick
fuels based on fuels based on
coal at coal mines coal at coal mines
schedule for covered schedule for covered
would receive would receive appropriations appropriations
provisions provisions
intensive goods intensive goods
conditional conditional
Sept. 26, 2019 Sept. 26, 2019
their potential their potential
and importers, and importers,
emissions emissions starts in starts in
equal to 75% of the tax equal to 75% of the tax
subject to a border subject to a border
moratorium moratorium on on
GHG emissions, GHG emissions,
petroleum petroleum products products
2021 at 4,900 2021 at 4,900
revenue received revenue received in the in the
tax—determined tax—determined
Clean Air Clean Air Act GHG Act GHG
GHG emissions GHG emissions
at refineries at refineries and and
mmtCO2e; the annual mmtCO2e; the annual
Treasury; the trust fund would Treasury; the trust fund would
by the Secretary of by the Secretary of
regulations for regulations for
from specific from specific
importers, importers, and and
emission emission schedule is schedule is
provide annual funding for the provide annual funding for the
the Treasury—that the Treasury—that
stationary emissions stationary emissions
industrial industrial
natural gas at natural gas at
cumulative, reaching cumulative, reaching
fol owing infrastructure fol owing infrastructure
is equivalent to the is equivalent to the
sources (with some sources (with some
sources, sources, and and
processors processors or at or at
48,800 mmtCO2e in 48,800 mmtCO2e in
programs (“as provided in programs (“as provided in
costs in costs in
exceptions) exceptions)
GHG emissions GHG emissions
point of sale for point of sale for
2031; assuming annual 2031; assuming annual
appropriations acts”) between appropriations acts”) between
comparable comparable
Creates a credit Creates a credit
from specific from specific
combustion combustion
emission emission levels levels
FY2021 and FY2030: FY2021 and FY2030:
domestic domestic
system, system, which phases which phases
products products
Tax imposed Tax imposed on on
fol owed fol owed this this
70% to the Federal 70% to the Federal Highway Highway
manufactured manufactured
out after five years, out after five years,
Tax rate set in Tax rate set in
facilities—in facilities—in specific specific
decreasing schedule, decreasing schedule,
Trust Fund; Trust Fund;
goods (associated goods (associated
for persons making for persons making
2021 at 2021 at
industrial source industrial source
covered emissions covered emissions
with the carbon with the carbon
10% to the states as grants to 10% to the states as grants to
payments under payments under
$35/mtCO $35/mtCO
would decrease would decrease to to
tax) tax)
2e, 2e,
categories—that categories—that
al ocateallocate to low-income to low-income
existing state GHG existing state GHG
increasing increasing
emit more emit more than than
4,000 mmtCO2e 4,000 mmtCO2e in in
households; households;
Exporters of Exporters of
reduction programs reduction programs
annual yannually by 5% by 5%
25,000 mtCO 25,000 mtCO
2031 2031
2e per 2e per
energy-intensive energy-intensive
Creates a National Creates a National
plus inflation; if plus inflation; if
year year
4.2% for various energy- 4.2% for various energy-
goods may receive goods may receive
Climate Climate Commission Commission
covered covered
related research related research and and
a tax refund a tax refund
to set five-year to set five-year
CRS-66 CRS-66


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
emissions emissions do notdo not Tax imposedTax imposed on on
development objectives, development objectives,
related to the related to the
emission emission reduction reduction
meet emission meet emission
facilities facilities that that
including carbon capture and including carbon capture and
increased costs of increased costs of
goals between 2025 goals between 2025
reduction reduction
manufacture or manufacture or
storage and battery storage and battery
inputs (i.e., inputs (i.e., fossil fossil
and 2050 and assess and 2050 and assess
schedule, the tax schedule, the tax import specified import specified
technology; technology;
fuels) subject to fuels) subject to
the effectiveness the effectiveness of of
rate increases by rate increases by
products or products or
4.0% for frequent and chronic 4.0% for frequent and chronic
the tax the tax
federal policies federal policies in in
an additional $4 an additional $4
combust biomass combust biomass
coastal flooding mitigation and coastal flooding mitigation and
meeting these goals meeting these goals
with emissions with emissions
adaptation infrastructure adaptation infrastructure
above 25,000 above 25,000
projects; projects;
mtCO2e mtCO2e
3.0% for displaced energy 3.0% for displaced energy
workers; workers;
2.5% for the Airport2.5% for the Airport and and
Airway Trust Fund; Airway Trust Fund;
1.5% for the Department of 1.5% for the Department of
Energy weatherization Energy weatherization
program; program;
1.5% for the Abandoned Mine 1.5% for the Abandoned Mine
Reclamation Fund; Reclamation Fund;
1.0% for the Reforestation 1.0% for the Reforestation
Trust Fund; Trust Fund;
0.5% to support agricultural 0.5% to support agricultural
GHG sequestration projects; GHG sequestration projects;
0.1% to decrease the 0.1% to decrease the
environmentalenvironmental impact of impact of
renewable energy activities renewable energy activities
pursuant to Section 931 of the pursuant to Section 931 of the
Energy Policy Act of 2005; Energy Policy Act of 2005;
0.1% for the Leaking 0.1% for the Leaking
Underground Storage Tank Underground Storage Tank
trust fund trust fund
CRS-67 CRS-67


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
H.R. 5457 H.R. 5457
Tax on fossil Tax on fossil
Tax imposed Tax imposed at coal at coal
No specific provision No specific provision
Provides a $1,000 income Provides a $1,000 income tax tax
No specific No specific
No specific No specific
No specific No specific
Maloney Maloney
fuels based on fuels based on
mines mines and oil and and oil and
credit for individuals and each credit for individuals and each
provisions provisions
provisions provisions
provisions provisions
Dec. 17, 2019 Dec. 17, 2019
their carbon their carbon
gas gas wel s wells and on and on
of their dependents; tax credit of their dependents; tax credit
content content
fuels “entered into fuels “entered into
phases out at adjusted gross phases out at adjusted gross
Tax rate starts in the United States” Tax rate starts in the United States”
income levels income levels exceeding exceeding
2020 at $40 per 2020 at $40 per
$314,000; tax credit and $314,000; tax credit and
ton of carbon, ton of carbon,
income phase-out level income phase-out level
which equates to which equates to
increases increases each year by a cost each year by a cost
approximately approximately
of living adjustment of living adjustment
$11/tCO2 $11/tCO2
emissions;emissions; tax tax
rate increases rate increases
annual yannually by a by a
cost of living cost of living
adjustment as adjustment as
defined in the bil defined in the bil
S. 4484 S. 4484
Fee on fossil Fee on fossil
Fee imposed Fee imposed on coal Fee ceases if emission on coal Fee ceases if emission
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of carbon- Imports of carbon-
Directs Directs EPA to enter EPA to enter
Durbin Durbin
fuels and other fuels and other
at coal mines at coal mines and and
targets are met; targets are met;
receives receives appropriations equal appropriations equal
provisions provisions
intensive goods are intensive goods are
agreement with the agreement with the
Aug. 6, 2020 Aug. 6, 2020
selected GHG selected GHG
importers, importers, crude oil crude oil
targets based on targets based on
to emission to emission fees receivedfees received in in
subject to a fee subject to a fee
National Academy of National Academy of
emission emission sources
sources at refineriesat refineries and and
percentage reductions percentage reductions
the Treasury; after subtracting the Treasury; after subtracting
(determined by the (determined by the
Sciences to study Sciences to study
Fee on fossil Fee on fossil
importers, importers, and and
compared to emission compared to emission
fee rebates and, in the first 18 fee rebates and, in the first 18
Secretary of the Secretary of the
effects of fee effects of fee
fuels starts in fuels starts in
natural gas at natural gas at
levels levels from covered from covered
years, approximately $5.5 years, approximately $5.5
Treasury) that is Treasury) that is
program program
2022 at 2022 at
producing wel s and producing wel s and
fuels and sources in fuels and sources in
bil ion per year, the remaining bil ion per year, the remaining
equivalent to the equivalent to the
$25/mtCO $25/mtCO
importers; importers; and and
2018: 2018:
funds are funds are al ocatedallocated
difference in (1) difference in (1)
2e, 2e,
increasing increasing
select sources select sources that that

approximately as fol ows approximately as fol ows
costs domestic costs domestic
annual yannually by $10 by $10
emit 25,000 emit 25,000
2030: 47% below 2018 during the first 10 years: 2030: 47% below 2018 during the first 10 years:
producers of producers of
plus inflation; if plus inflation; if
mtCO2e or more mtCO2e or more of of
comparable comparable
2035: 60% below 2018 70% for direct payments to 2035: 60% below 2018 70% for direct payments to
emission emission targets targets
CO2 or methane CO2 or methane
eligible eligible individuals, phasing out individuals, phasing out
products incur due products incur due
are not met, are not met, the the
per year per year
2040: 70% below 2018 at certain income 2040: 70% below 2018 at certain income levels; levels;
to the fee and (2) to the fee and (2)
fee increases fee increases are are

2045: 80% below 2018 2045: 80% below 2018
the comparable the comparable
5% to support agricultural and 5% to support agricultural and
greater greater
2050: 90% below 2018 2050: 90% below 2018
costs imposed by costs imposed by
forestry sequestration forestry sequestration
activities; activities;
CRS-68 CRS-68


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Fee on other Fee on other
10% for grants to eligible 10% for grants to eligible
the exporting the exporting
sources starts in sources starts in
entities to support transition entities to support transition
nation nation
2024 2024
assistance to a lower assistance to a lower carbon carbon
Exporters of fossil Exporters of fossil
Fee is delayed in Fee is delayed in
economy; economy;
fuels and carbon fuels and carbon
2022 and 2023 if 2022 and 2023 if
15% for a newly established 15% for a newly established
intensive products intensive products
unemployment unemployment
Climate Climate Change Finance Change Finance
may receive may receive a a
rate is 5% or rate is 5% or
Corporation to finance “clean Corporation to finance “clean
rebate based on rebate based on
higher higher
energy” and climate change energy” and climate change
the emissions the emissions fee fee
A rebate is A rebate is
resiliency resiliency activities, including activities, including
and manufacturing and manufacturing
provided for provided for
research and development and research and development and
costs attributable costs attributable
carbon capture, carbon capture,
commercialization commercialization of of
to the emissions to the emissions
sequestration, sequestration,
technologies technologies
fee fee
and utilization and utilization
activities activities
H.R. 8175 H.R. 8175
Tax on fossil Tax on fossil
Tax imposed Tax imposed on on
Tax ceases Tax ceases if emission if emission
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of goods Imports of goods
No specific No specific
McNerney McNerney
fuels based on fuels based on
producers, miners, producers, miners,
targets are met; targets are met;
receives receives appropriations equal appropriations equal
provisions provisions
containing or containing or
provisions provisions
Sept. 4, 2020 Sept. 4, 2020
the carbon the carbon
or importers or importers of of
targets based on life- targets based on life-
to carbon tax revenues to carbon tax revenues
produced using produced using
content “of the content “of the
fossil fossil fuels fuels
cycle emission cycle emission
received received in the Treasury in the Treasury
fossil fossil fuels subject fuels subject
life cycle life cycle
percentage reductions percentage reductions
Tax revenue used to offset a Tax revenue used to offset a
to a carbon to a carbon
emissions” emissions”
(as determined (as determined by by
corresponding reduction in corresponding reduction in
equivalency fee equivalency fee
Tax starts in Tax starts in
EPA) from fossil EPA) from fossil fuels fuels
individual income individual income tax rates tax rates
(determined by the (determined by the
2021 at $25 per 2021 at $25 per
below 2005 levels: below 2005 levels:
starting in 2021; remaining starting in 2021; remaining
Secretary of the Secretary of the
metric metric ton of ton of

revenues would be revenues would be al ocatedallocated as as
Treasury) that is Treasury) that is
CO CO
equal to the cost equal to the cost
2 emissions; 2 emissions;
2025: 30% 2025: 30%
fol ows: fol ows:
tax rate tax rate
2030: 40% 2030: 40%
that U.S. producers that U.S. producers
80% used to provide quarterly 80% used to provide quarterly
increases increases
2035: 50% below 2035: 50% below
of a comparable of a comparable
dividends to every person with dividends to every person with
annual yannually by by
2040: 70% 2040: 70%
good incur as a good incur as a
a Social Security number a Social Security number
$10/ton; if $10/ton; if
2050: 80% 2050: 80%
result of the U.S. result of the U.S.
emission emission targets targets
20% used to support a range 20% used to support a range
carbon tax; this fee carbon tax; this fee
are met, tax are met, tax
of objectives, of objectives, including: including:
expires if the expires if the
ceases to apply ceases to apply
-worker -worker transition assistance transition assistance
exporting nation exporting nation
for four years; for four years;
-rural energy assistance -rural energy assistance
implements implements
-technology-neutral research -technology-neutral research
equivalent equivalent
CRS-69 CRS-69


Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
tax reapplies tax reapplies if if
and development and development
measures measures or if an or if an
subsequent subsequent
-electric -electric grid innovation grid innovation
international international
targets not met targets not met
-infrastructure resilience -infrastructure resilience
agreement requires agreement requires
-energy efficiency and -energy efficiency and
equivalent equivalent
conservation conservation
measures measures
Exporters of fossil Exporters of fossil
fuels or materials fuels or materials
that used fossil that used fossil
fuels during fuels during
production or production or
manufacture may manufacture may
receivereceive a tax a tax
refund related to refund related to
the increased costs the increased costs
of inputs (i.e.,of inputs (i.e., fossil fossil
fuels) subject to fuels) subject to
the carbon tax the carbon tax
Source: Prepared by CRS. Prepared by CRS.
CRS-70 CRS-70

Market-Based Greenhouse Gas Emission Reduction Legislation



Author Information

Jonathan L. Ramseur Jonathan L. Ramseur

Specialist in Environmental Policy Specialist in Environmental Policy



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