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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Market-Based Greenhouse Gas Emission Reduction Legislation
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
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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.
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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 pactsImpacts, by Jonathan L. Ramseur and Jane A. Leggett, by Jonathan L. Ramseur and Jane A. Leggett
. .
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Market-Based Greenhouse Gas Emission Reduction Legislation
The first section of this report provides background information on cap-and-trade and carbon tax or emission fee programs. The second section compares the GHG emission reduction legislation in each Congress (108th-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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Market-Based Greenhouse Gas Emission Reduction Legislation
What Is a GHG Emissions Cap-and-Trade System? A GHG cap-and-trade system creates an overall limit, or cap, on GHG emissions from certain sources. Cap-and-trade programs can vary by the sources covered, which often include major emitting sectors (e.g., power plants and carbon-intensive industries), fuel producers and/or 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).
Congressional Research Service
Congressional Research Service
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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 pactsImpacts, 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.
Congressional Research Service
Congressional Research Service
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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.
Congressional Research Service
Congressional Research Service
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6
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
Disclaimer
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