Market-Based Greenhouse Gas Emission Reduction Legislation: 108th Through 118th Congresses
Changes from January 29, 2020 to September 29, 2020
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Market-Based Greenhouse Gas Emission Reduction Legislation: 108th through 116th Congresses
Contents
- Introduction
- Background
- What Is a GHG Emissions Cap-and-Trade System?
- What Is a Carbon Tax or Emissions Fee?
- GHG Emission Reduction Legislation by Congress
Figures
Tables
- Table 1. GHG Emission Reduction Proposals: 108th Congress
- Table 2. GHG Emission Reduction Proposals: 109th Congress
- Table 3. GHG Emission Reduction Proposals: 110th Congress
- Table 4. GHG Emission Reduction Proposals: 111th Congress
- Table 5. GHG Emission Reduction Proposals: 112th Congress
- Table 6. GHG Emission Reduction Proposals: 113th Congress
- Table 7. GHG Emission Reduction Proposals: 114th Congress
- Table 8. GHG Emission Reduction Proposals: 115th Congress
- Table 9. GHG Emission Reduction Proposals: 116th Congress
Summary
Market-Based Greenhouse Gas Emission
September 29, 2020
Reduction Legislation: 108th through 116th
Jonathan L. Ramseur
Congresses
Specialist in Environmental Policy
Congressional interest in market-based greenhouse gas (GHG) emission control legislation has
fluctuated over the past 15 years. During that time, legislation has often involved market-based approaches, such as a cap-and-trade system or a carbon tax or emissions fee program. Both
approaches would place a price—directly or indirectly—on GHG emissions or their inputs, namely fossil fuels. Both would increase the price of fossil fuels , and both would reduce GHG emissions to some degree. Both would allow emission sources to choose the best way to meet their emission requirements or reduce costs, potentiallypotentialy by using market forces to minimize national costs of emission reductions. Preference between the two approaches ultimately depends on which variable policymakers prefer to precisely control—emission levels or emission prices.
A primary policy concern with either approach is the economic impacts that may result. Expected energy price increases could have both economy-wide impacts (e.g., on the U.S. gross domestic product) and disproportionate effects on specific industries and particular demographic groups. The degree of these potential effects would depend on a number of factors, including the magnitude, design, and scope of the program and the use of tax or fee revenues or emission allowance values.
As the figurefigure below illustrates, between the 108th and 111th108th and 111th Congresses, most of the introduced bills would have established cap-and-trade systems. Between the 112th and 115th112th and 115th Congresses, most of the introduced bills would have established carbon tax or emissions fee programs. Most of the proposals from the 116th116th Congress would establish a carbon tax or emissions fee program. The proposals range in the scope of emissions covered from CO2CO2 emissions from fossil fuel combustion to multiple GHG GHG emissions from a broader array of sources. In addition, the proposals differ by how, to whom, and for what purpose the fee revenues or allowance value would be applied. Some economic analyses indicate that policy choices to distribute the tax, fee, or emission allowance revenue would yield greater economic impacts than the direct impacts of the carbon price.
Congressional Research Service Market-Based Greenhouse Gas Emission Reduction Legislation This report includes a separate table for each Congress, comparing GHG emission reduction legislation by the following characteristics:
-
General framework: the proposed program structure and scope in terms of emissions covered, multiple
GHGGHG emissions, or just carbon dioxide (CO2) emissions. - CO2) emissions.
Covered entities/materials: a list of the industries, sectors, or materials that would be subject to the
program. -
program.
Emissions limit or target: the GHG or
CO2CO2 emissions target or cap for a specified year. - Distribution of allowance value or tax revenue: how emission allowance value or carbon tax or fee revenue would be distributed.
- Offset and international allowance treatment: the degree to which offsets and international allowances could be used for compliance purposes and the types of offset activities that would qualify.
-
Mechanism to address carbon-intensive imports: a U.S. GHG
-
Additional GHG
Introduction
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Contents
Introduction ................................................................................................................... 1 Background.................................................................................................................... 3
What Is a GHG Emissions Cap-and-Trade System? ........................................................ 3 What Is a Carbon Tax or Emissions Fee? ....................................................................... 4
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 Introduced
in 108th Congress through 116th Congress ......................................................................... 3
Tables Table 1. GHG Emission Reduction Proposals: 108th Congress ................................................ 7 Table 2. GHG Emission Reduction Proposals: 109th Congress .............................................. 10 Table 3. GHG Emission Reduction Proposals: 110th Congress .............................................. 17 Table 4. GHG Emission Reduction Proposals: 111th Congress .............................................. 27 Table 5. GHG Emission Reduction Proposals: 112th Congress .............................................. 35 Table 6. GHG Emission Reduction Proposals: 113th Congress .............................................. 37 Table 7. GHG Emission Reduction Proposals: 114th Congress .............................................. 40 Table 8. GHG Emission Reduction Proposals: 115th Congress .............................................. 46 Table 9. GHG Emission Reduction Proposals: 116th Congress .............................................. 58
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 atmospheric concentration of carbon dioxide (CO2CO2) and other greenhouse gases (GHGs)11 by about 40% over the past 150 years. Almost all al climate scientists agree that these GHG increases have contributed to a warmer climate today and that, if they continue, they will wil contribute to future climate change.22 Although a range of actions that seek to reduce GHG emissions are currently
underway or being developed on the international3international3 and subnational level (e.g., individual state actions or regional partnerships),4,4 federal policymakers and stakeholders have different
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. 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) or fee.55 In general, a market-based approach would place a price on GHG emissions (e.g., through an emissions cap or emission tax or fee), allowingal owing covered entities to determine their pathway of compliance.6
compliance.6
This report provides a comparison of the legislative proposals from the 108th108th through the 116th 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 sequestration8—but these bills are not discussed in this report.
In addition, starting in the 112th
1 GHGs in the atmosphere trap radiation as heat, warming the Earth’s surface and oceans. T he primary GHGs emitted 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 include carbonaceous and sulfuric aerosols, hydrochlorofluorocarbons, and elevated tropospheric ozone pollution generated by emissions of nitrogen oxides and volatile organic compounds, such as solvents.
2 For the latest U.S. assessment of the human contribution to climate change, see Intergovernmental Panel on Climate Change, Global Warm ing of 1.5°C, Special Report, 2018; and U.S. Global Change Research Program, Fourth National Clim ate Assessm ent, vol. II: Im pacts, Risks, and Adaptation in the United States, 2018. See also CRS Report R45086, Evolving Assessm ents of Hum an and Natural Contributions to Clim ate Change , by Jane A. Leggett .
3 Some countries have levied carbon taxes (or something similar) for over 20 years. For a review of carbon prices in 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 he most aggressive actions have come from California and from the Regional Greenhouse Gas Initiative (RGGI)—a coalition of nine states from the Northeast and Mid-Atlantic regions. T he RGGI is a cap-and-trade system that t ook effect in 2009 that applies to CO2 emissions from electric power plants. (See CRS Report R41836, The Regional Greenhouse Gas Initiative: Background, Im pacts, and Selected Issues, by Jonathan L. Ramseur.) California established a cap-and-trade program that took effect in 2013. California’s cap covers multiple GHGs, which account for approximately 85% of California’s GHG emissions. For more details, see the California Air Resources Board website, 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 policies (e.g., renewable energy 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 (sulfur dioxide and nitrogen oxides) that lead to acid rain. Although controversial at its inception, the progra m is widely considered a success. See, for example, Gabriel Chan et al., The SO2 Allowance Trading System and the Clean Air Act Am endm ents of 1990: Reflections on Twenty Years of Policy Innovation , Harvard Environmental Economics Program, 2012, https://www.belfercenter.org/sites/default/files/legacy/files/so2-brief_digital4_final.pdf.
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GHG emissions—legislation that promotes renewable energy7 or encourages carbon capture and
sequestration8—but these bil s are not discussed in this report.
In addition, starting in the 112th Congress, some Members have introduced resolutions in the
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 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. 119).9
119).9 An analogous resolution was not introduced in the Senate in the 115th Congress.
As Figure 1 illustrates, between the 108th and 111th115th Congress.
As Figure 2 il ustrates, between the 108th and 111th Congresses, most of the introduced bills bil s would have established cap-and-trade systems. Between the 112th and 115th112th and 115th Congresses, most of
the introduced billsbil s would have established carbon tax or emissions fee programs.
In the 111th111th Congress, Members offered multiple and varied proposals,1010 ultimately resulting in the House passage of H.R. 2454, an economy-wide cap-and-trade bill.11bil .11 A companion bill bil in the Senate (S. 1733) was ordered reported from the Committee on Environment and Public Works,
but the bill bil was never brought to the Senate floor for consideration.
In subsequent Congresses, some Members continued to offer GHG emission control legislation, but these proposals saw minimal legislative activity. During that time frame, the U.S.
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 12 EPA rulemakings in this area—particularly the 2015 Clean Power Plan final rule13rule13 and the 2019
Affordable Clean Energy final rule14rule14—continue to generate interest and debate in Congress.
The proposals from the 116th116th Congress range in their scope of emissions covered from CO2 CO2 emissions from fossil fuel combustion to multiple GHG emissions from a broader array of sources. In addition, the proposals differ by how, to whom, and for what purpose the fee revenues or al owanceor allowance value would be applied. Some economic analyses indicate that policy choices to
distribute the tax, fee, or emission allowanceal owance revenue would yield greater economic impacts than
the direct impacts of the carbon price.
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).
Background
Over the last 15 years, broad GHG emission reduction legislation has generallygeneral y involved market-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 innovation.1516 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 wouldw ould increase the price of fossil fuels for the consumer, and both would reduce GHG emissions to some degree.
Preference between the two approaches ultimately depends on which variable policymakers prefer to precisely control: emission levels or emission prices. As a practical matter, these market-based policies may include complementary or hybrid designs, incorporating elements to increase certainty in price or emissions quantity. For example, legislation could provide mechanisms for adjusting a carbon tax/fee if a targeted range of emissions reductions were not achieved in a given
period. Alternatively, legislation could include mechanisms that would bound the range of market
prices for a cap-and-trade system'’s emissions allowancesal owances to improve price certainty.
What Is a GHG Emissions Cap-and-Trade System?
A GHG cap-and-trade system creates an overall 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 system might involve regulatory directives that require emission performance standards for specific sources or the application of best available control technology.
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emitting sectors (e.g., power plants and carbon-intensive industries), fuel producers and/or
processors (e.g., coal mines or petroleum refineries), or some combination of both.
The emissions cap is partitioned into emission allowances. TypicallyTypical y, in a GHG cap-and-trade
system, one emission allowanceal owance represents the authority to emit one metric ton16ton17 of carbon dioxide-equivalent (mtCO2e).17 (mtCO2e).18 The emissions cap creates a new commodity—the emission allowanceal owance. Policymakers may decide to distribute the emission allowancesal owances to covered entities at no cost (based on, for example, previous years'’ emissions), sell the allowancessel the al owances (e.g., through an auction), or use some combination of these strategies. The distribution of emission allowances is typicallyal owances is
typical y a source of significant debate during a cap-and-trade program'’s development, because the allowances
the al owances have monetary value.
At the end of each established compliance period (e.g., a calendar year or multiple years),
covered sources submit emission allowancesal owances to an implementing agency to cover the number of tons emitted. If a source did not provide enough allowancesal owances to cover its emissions, the source would be subject to penalties. Covered sources would have a financial incentive to make reductions beyond what is required, because they could (1) sell sel or trade unused emission allowancesal owances to entities that face higher costs to reduce their facility emissions, (2) reduce the
number of emission allowanceal owance they need to purchase, or (3) bank them, if allowedal owed, to use in a
future year.
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 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 allowal ow their use and, if so, to what degree) would have a substantial impact on overall overal program cost. This is because some emissions and sources often not covered in cap-and-trade programs can reduce
emissions at a lower cost per ton than many typicallytypical y covered sources. However, the use of offsets generates considerable controversy, primarily over the concern that difficult-to-assess or
fraudulent offsets could create uncertainty about the quantity of emission reductions.18
19
In addition, other mechanisms—such as allowanceal owance banking or borrowing—may be included to
increase the flexibility of the program and, generallygeneral y, 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. 18 T his term of measure (CO2e) is used because GHGs vary by global warming potential (GWP). GWP is an index developed by the Intergovernmental Panel on Climate Change (IPCC) that allows comparisons of the heat -trapping ability of different gases over a period of time, typically 100 years. Consistent with international GHG reporting requirements, EPA’s most recent GHG inventory (2018) uses the GWP values presented in the IPCC’s 2007 Fourth Assessment Report. For example, based on these GWP values, a ton of methane is 25 times more potent than a ton of CO2 when averaged over a 100-year time frame. T he 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 100 -year GWP for methane as ranging from 28 to 36. EPA compares the 100-year GWP values in T able 1-3 of its 2018 GHG Inventory.
19 Both the RGGI and California cap-and-trade systems allow offsets as a compliance option (see footnote 4).
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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
that may decrease emissions.19
20
Economic modeling indicates that a carbon tax/fee approach could achieve emission reductions,
the level of which would depend on the scope and stringency (i.e., tax or fee level) of the program.2021 For example, to address emissions from fossil fuel combustion—76% of total U.S. GHG emissions22GHG emissions21—policymakers could apply a tax/fee to fossil fuels at approximately 3,000 entities, including coal mines, petroleum refineries, and entities required to report natural gas deliveries.22
deliveries.23
A carbon tax/fee would generate a new revenue stream. The magnitude of the revenues would depend on the scope and rate of the tax or fee, the responsiveness of covered entities in reducing their potential emissions, and multiple other market factors. A 2016 Congressional Budget Office
study estimated that a $25/ton carbon tax would yield approximately $100 billion bil ion in the first year
of the program.23
24
When designing a carbon tax/fee system, one of the more controversial and challengingchal enging questions
for policymakers is how, to whom, and for what purpose the new tax or fee revenues could be applied. Congress would face the same issues that would be encountered during a debate over emission allowance
emission al owance value distribution in a cap-and-trade system.
When deciding how to allocateal ocate the revenues, policymakers would encounter trade-offs among objectives. The central trade-offs involve minimizing economy-wide costs, lessening the costs borne by specific groups—particularly low-income households and displaced workers or
communities—and supporting a range of specific policy objectives.
A primary argument against a carbon tax/fee system (and a cap-and-trade program) is the concern about the economy-wide costs that a carbon price could impose. The potential costs would depend on a number of factors, including the magnitude, design, and use of revenues of the carbon tax or fee.
Others who may oppose a carbon tax system express opposition to federal taxes in general or the possibility that the revenues would enable greater federal spending. Owners of coal resources, in
particular, would likely lose asset values under a carbon tax system—as under a cap-and-trade
system—to the degree that coal becomes less competitive under the costs of emission reductions.
20 T his differs from a price system that applies to energy content, such as a tax based on British thermal units (Btu). In 1993, President Clinton proposed a deficit reduction package that included a t ax based on energy content, measured in Btu. T he goals of the 1993 Btu tax proposal were to promote energy conservation and raise revenue. At the time, the proposed tax would have generated a new revenue stream of about $30 billion per year. T he proposal was met with strong opposition and was not enacted; Congress ultimately enacted an approximately five-cent-per-gallon increase in the motor fuels taxes.
21 See, for example, Alexander R. Barron et al., “Policy Insights from the EMF 32 Study on U.S. Carbon T a x Scenarios,” Climate Change Economics, vol. 9, no. 1 (2018). 22 EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2017, April 2019. 23 See T able A-1 in CRS Report R45625, Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax or Em issions Fee: Considerations and Potential Im pacts, by Jonathan L. Ramseur and Jane A. Leggett .
24 Congressional Budget Office, Options for Reducing the Deficit: 2017-2026, 2016.
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GHG Emission Reduction Legislation by Congress GHG Emission Reduction Legislation by Congress
This section compares GHG emission reduction legislation from the 108th108th Congress to the 116th 116th Congress by including a separate legislative table for each Congress.2425 The tables compare the billsbil s by their overall overal framework, scope, stringency, and selected design elements. Categories of
comparison include
-
General framework: the proposed program structure—emissions cap, emissions
tax or fee, or some combination of both—and scope in terms of emissions covered (multiple GHG emissions or just
CO2 emissions). - CO2 emissions). Covered entities/materials: the industries, sectors, or materials that would be subject to the program.
-
Emissions limit or target: the GHG or
CO2CO2 emissions target or cap for a particular year. Some targets/caps would apply only to covered sources; others apply to total U.S. GHG emissions. -
Distribution of allowance value or tax revenue: how emission
allowanceal owance value or carbon tax or fee revenue would be distributed (if applicable). -
Offset and international allowance treatment: the degree to which offsets and
international allowancesinternational al owances could be used for compliance purposes and the types of offset activities that would qualify. Some proposals limit offsets by percentage of required reductions; others limit offsets as a percentage ofallowanceal owance submissions. -
Mechanism to address carbon-intensive imports: a central concern with a U.S.
GHG reduction program is that it could raise U.S. prices more than goods manufactured abroad, potentially creating a competitive disadvantage for some
domestic businesses, particularly carbon-intensive, trade-exposed industries. Policymakers could address these potential impacts in several ways—for example, through border adjustments, tax rebates, or emission
allowancesal owances provided at no cost to selected industrial sectors. -
Additional GHG
further reduce GHG emissions that are not covered in the central program.
Table 1. GHG Emission Reduction Proposals: 108th Congress
Ordered Chronologically by Introduced Date
|
Bill Number, Sponsor, Introduced Date, and Committee or Floor Action |
General Framework |
Covered Entities/Materials |
Emissions Limit or Target |
Distribution of Allowance Value or Tax/Fee Revenue |
Offset and International Allowance Treatment |
Mechanism to Address Carbon-Intensive Imports |
Additional GHG Reduction Measures |
Discharged by unanimous consent by the Senate Committee on Environment and Public Works on Oct. 29, 2003 S.Amdt. 2028, which contained similar provisions, was not agreed to on Oct. 30, 2003 |
Cap-and-trade system for GHG emissions from multiple sectors |
Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e |
Cap of 5,896 mtCO2e for covered sources by 2010 (equivalent to 2000 levels), reduced by the level of emissions from non-covered sources; cap of 5,123 mtCO2e for covered sources by 2016 (equivalent to 1990 levels), reduced by the level of emissions from non-covered sources |
|
From 2010 through 2015, up to 15% of submitted allowances can come from domestic or international offsets; after 2015, 10% of submitted allowance can come from offsets |
No specific provision |
No specific provision |
|
Cap-and-trade system for CO2 emissions from power plants; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) |
Fossil-fuel-fired electric generating facilities with a capacity of greater than 15 megawatts |
Cap on electric power emissions of 2.05 billion metric tons in 2009 (equivalent to 1995 emissions) |
EPA allocates free allowances to the following: 60% to households to alleviate increased electricity prices 6% for worker transition assistance 20% for renewable energy and energy efficiency 10% to electricity generation facilities 1% for forest sequestration 2% for geologic sequestration
S. 843
Cap-and-trade
Fossil-fuel-fired electric
Cap on electric power
Al otted to
Determined by
No specific
No specific
Carper
system for CO2 generating facility that has a emissions of 2006 levels
covered sources
EPA
provision
provision
Apr. 9, 2003
emissions from
capacity of greater than 25
in 2009; lowered to
at no cost based
electricity
megawatts and generates
2001 levels in 2013
on previous year’s
sector; also
electricity for sale
emission levels
addresses
(minus a reserve
other air
set aside for new
pol utants
units)
(mercury, sulfur dioxide, nitrogen oxide)
H.R. 2042
Directs EPA to
Fossil-fuel-fired electric
1990 CO2 levels for
No specific
No specific
No specific
No specific
Waxman
issue
generating facility that has a power plants by 2009
provision
provision
provision
provision
May 8, 2003
regulations to
capacity of greater than 25
meet CO2
megawatts and generates
emissions goals; electricity for sale |
No specific provision |
No specific provision |
No specific provision |
|
Cap-and-trade system for CO2 emissions from electricity sector; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) |
Fossil-fuel-fired electric generating facility that has a capacity of greater than 25 megawatts and generates electricity for sale |
Cap on electric power emissions of 2006 levels in 2009; lowered to 2001 levels in 2013 |
Allotted to covered sources at no cost based on previous year's emission levels (minus a reserve set aside for new units) |
Determined by EPA |
No specific provision |
No specific provision |
|
|
Fossil-fuel-fired electric generating facility that has a capacity of greater than 25 megawatts and generates electricity for sale |
1990 CO2 levels for power plants by 2009 |
No specific provision |
No specific provision |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG emissions from multiple sectors |
Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e |
1990 GHG levels for covered sources, reduced by the level of emissions from non-covered sources by 2020 |
Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which may use allowance to help energy consumers with increased prices and provide transition assistance to dislocated workers and communities, among other objectives |
Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from agricultural sequestration |
No specific provision |
No specific provision |
Source: Prepared by CRS.
Table 2. GHG Emission Reduction Proposals: 109th Congress
Ordered Chronologically by Introduced Date
|
Bill Number, Sponsor, Introduced Date, and Committee or Floor Action |
General Framework |
Covered Entities/Materials |
Emissions Limit or Target |
Distribution of Allowance Value or Tax/Fee Revenue |
Offset and International Allowance Treatment |
Mechanism to Address Carbon-Intensive Imports |
Additional GHG Reduction Measures |
|
Cap-and-trade system for CO2 emissions from power plants; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) |
Fossil-fuel-fired electric generating facilities with a capacity of greater than 15 megawatts |
Cap on electric power emissions of 2.05 billion metric tons in 2010 |
In 2010, EPA allocates free allowance to the following: 60% to households to alleviate increased electricity prices 6% for worker transition assistance transition assistance 20% for renewable energy and energy efficiency 10% to electricity generation facilities 1% for forest sequestration 2% for geologic sequestration
S. 342
Cap-and-trade system for
Electric power,
Cap of
Determined by the
Up to 15% of
No specific
No specific
McCain
GHG emissions from
industrial, or
5,896
Secretary of
submitted
provision
provision
Feb. 10, 2005
multiple sectors
commercial entities
mtCO2e for
Commerce; al owances
al owances can
that emit over 10,000
covered
provided to covered
come from
mtCO2e annual y; any
sources by
entities at no cost and
domestic or
refiner or importer of
2010
to the newly
international
petroleum products
(equivalent
established, nonprofit
offsets; if offsets
for transportation use
to 2000
Climate Change Credit
account for 15%
that, when
levels),
Corporation, which
of al owances, at
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
reduced by
may use al owance to
least 1.5% must
over 10,000 mtCO2e
the level of
help energy consumers
come from
annual y; and any
emissions
with increased prices
agricultural
importer or producer
from non-
and provide transition
sequestration
of HFC, PFC, and SF6
covered
assistance to dislocated
that, when used, wil
sources
workers and
emit over 10,000
communities, among
mtCO2e
other objectives
H.R. 759
Cap-and-trade system for
Electric power,
Cap of
Determined by the
Up to 15% of
No specific
No specific
Gilchrest
GHG emissions from
industrial, or
5,896
Secretary of
submitted
provision
provision
Feb. 10, 2005
multiple sectors
commercial entities
mtCO2e for
Commerce; al owances
al owances can
that emit over 10,000
covered
provided to covered
come from
mtCO2e annual y; any
sources by
entities at no cost and
domestic or
refiner or importer of
2010
to the newly
international
petroleum products
(equivalent
established, nonprofit
offsets; if offsets
for transportation use
to 2000
Climate Change Credit
account for 15%
that, when
levels),
Corporation, which
of al owances, at
combusted, wil emit
reduced by
may use al owance to
least 1.5% must
over 10,000 mtCO2e
the level of
help energy consumers
come from
annual y; and any
emissions
with increased prices
agricultural
importer or producer
from non-
and provide transition
sequestration
of HFC, PFC, and SF6
covered
assistance to dislocated
that, when used, wil
sources
workers and
emit over 10,000
communities, among
mtCO2e
other objectives
H.R. 1451
Directs EPA to issue
Fossil-fuel-fired
1990 CO2
No specific provision
No specific
No specific
No specific
Waxman
regulations to meet CO2
electric generating
levels for
provision
provision
provision
Mar. 17, 2005
emissions goals; may include facilities that have a
power
a market-based approach;
capacity of greater
plants by
also addresses other air
than 25 megawatts
2010
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
and generate
dioxide, nitrogen oxide)
electricity for sale
S. 730
EPA determines the
Fossil-fuel-fired
Cap on
No specific provision
No specific
No specific
No specific
Leahy
framework of the program;
electric generating
electric
provision
provision
provision
Apr. 6, 2005
also addresses other air
facilities (no minimum
power
pol utants (mercury, sulfur
threshold)
emissions of
dioxide, nitrogen oxide)
2.05 bil ion metric tons in 2010
H.R. 1873
Cap-and-trade system for
Fossil-fuel-fired
Cap on
Al otted to covered
Determined by
No specific
No specific
Bass
CO2 emissions from
electric generating
electric
sources at no cost
EPA
provision
provision
Apr. 27, 2005
electricity sector; also
facilities that have a
power
based on previous
addresses other air
capacity of greater
emissions of
years emission levels
pol utants (mercury, sulfur
than 25 megawatts
2006 levels
(minus a reserve set
dioxide, nitrogen oxide)
and generate
in 2010;
aside for new units)
electricity for sale
lowered to 2001 levels in 2015
S. 1151
Cap-and-trade system for
Electric power,
Cap of
Determined by the
Up to 15% of
No specific
No specific
McCain
GHG emissions from
industrial, or
5,896
Secretary of
submitted
provision
provision
May 26, 2005
multiple sectors
commercial entities
mtCO2e for
Commerce; al owances
al owances can
that emit over 10,000
covered
provided to covered
come from
mtCO2e annual y; any
sources by
entities at no cost and
domestic or
refiner or importer of
2010
to the newly
international
petroleum products
(equivalent
established, nonprofit
offsets; if offsets
for transportation use
to 2000
Climate Change Credit
account for 15%
that, when
levels),
Corporation, which
of al owances, at
combusted, wil emit
reduced by
may use al owance to
least 1.5% must
over 10,000 mtCO2e
the level of
help energy consumers
come from
annual y; and any
emissions
with increased prices
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 or producer
from non-
and provide transition
agricultural
of HFC, PFC, and SF6
covered
assistance to dislocated
sequestration
that, when used, wil
sources
workers and
emit over 10,000
communities, among
mtCO2e
other objectives
H.R. 2828
Cap-and-trade system for
Electric power,
Cap of
Determined by the
Up to 15% of
No specific
No specific
Inslee
GHG emissions from
industrial, or
5,896
Secretary of
submitted
provision
provision
June 9, 2005
multiple sectors
commercial entities
mtCO2e for
Commerce; al owances
al owances can
that emit over 10,000
covered
provided to covered
come from
mtCO2e annual y; any
sources by
entities at no cost and
domestic or
refiner or importer of
2010
to the newly
international
petroleum products
(equivalent
established, nonprofit
offsets; if offsets
for transportation use
to 2000
Climate Change Credit
account for 15%
that, when
levels),
Corporation, which
of al owances, at
combusted, wil emit
reduced by
may use al owance to
least 1.5% must
over 10,000 mtCO2e
the level of
help energy consumers
come from
annual y; and any
emissions
with increased prices
agricultural
importer or producer
from non-
and provide transition
sequestration
of HFC, PFC, and SF6
covered
assistance to dislocated
that, when used, wil
sources
workers and
emit over 10,000
communities, among
mtCO2e
other objectives
H.R. 5049
Cap-and-trade system for
Emissions from
Maintains
20% to electric power,
Provides
No specific
No specific
Udal
GHG emissions from
domestic and
existing
fossil fuel production,
additional
provision
provision
Mar. 29, 2006
multiple sectors, with a
imported fossil fuels;
emission
and energy intensive
al owances for
price ceiling of $25 per ton
emissions from
levels; the
industries
sequestration
of carbon, indexed to
agricultural, industrial,
number of
15% to states for
projects
inflation
and manufacturing
al owances
worker transition
processes, excluding
distributed
assistance
methane from animals
based on emissions
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
5% to states for energy
prior to
assistance to low-
enactment,
income households
without
25% to the Department
reductions
of Energy to support
in
energy research and
subsequent
development
years
10% to the Department of State to invest in low-emission and emission-free policies |
No specific provision |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG emissions from multiple sectors |
Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e |
Cap of 5,896 mtCO2e for covered sources by 2010 (equivalent to 2000 levels), reduced by the level of emissions from non-covered sources |
Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which may use allowance to help energy consumers with increased prices and provide transition assistance to dislocated workers and communities, among other objectives |
Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from agricultural sequestration |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG emissions from multiple sectors |
Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e |
Cap of 5,896 mtCO2e for covered sources by 2010 (equivalent to 2000 levels), reduced by the level of emissions from non-covered sources |
Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which may use allowance to help energy consumers with increased prices and provide transition assistance to dislocated workers and communities, among other objectives |
Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from agricultural sequestration |
No specific provision |
No specific provision |
|
Directs EPA to issue regulations to meet CO2 emissions goals; may include a market-based approach; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) |
Fossil-fuel-fired electric generating facilities that have a capacity of greater than 25 megawatts and generate electricity for sale |
1990 CO2 levels for power plants by 2010 |
No specific provision |
No specific provision |
No specific provision |
No specific provision |
|
EPA determines the framework of the program; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) |
Fossil-fuel-fired electric generating facilities (no minimum threshold) |
Cap on electric power emissions of 2.05 billion metric tons in 2010 |
No specific provision |
No specific provision |
No specific provision |
No specific provision |
|
Cap-and-trade system for CO2 emissions from electricity sector; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) |
Fossil-fuel-fired electric generating facilities that have a capacity of greater than 25 megawatts and generate electricity for sale |
Cap on electric power emissions of 2006 levels in 2010; lowered to 2001 levels in 2015 |
Allotted to covered sources at no cost based on previous years emission levels (minus a reserve set aside for new units) |
Determined by EPA |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG emissions from multiple sectors |
Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e |
Cap of 5,896 mtCO2e for covered sources by 2010 (equivalent to 2000 levels), reduced by the level of emissions from non-covered sources |
Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which may use allowance to help energy consumers with increased prices and provide transition assistance to dislocated workers and communities, among other objectives |
Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from agricultural sequestration |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG emissions from multiple sectors |
Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e |
Cap of 5,896 mtCO2e for covered sources by 2010 (equivalent to 2000 levels), reduced by the level of emissions from non-covered sources |
Determined by the Secretary of Commerce; allowances provided to covered entities at no cost and to the newly established, nonprofit Climate Change Credit Corporation, which may use allowance to help energy consumers with increased prices and provide transition assistance to dislocated workers and communities, among other objectives |
Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from agricultural sequestration |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG emissions from multiple sectors, with a price ceiling of $25 per ton of carbon, indexed to inflation |
Emissions from domestic and imported fossil fuels; emissions from agricultural, industrial, and manufacturing processes, excluding methane from animals |
Maintains existing emission levels; the number of allowances distributed based on emissions from years prior to enactment, without reductions in subsequent years |
20% to electric power, fossil fuel production, and energy intensive industries 15% to states for worker transition assistance 5% to states for energy assistance to low-income households 25% to the Department of Energy to support energy research and development 10% to the Department of State to invest in low-emission and emission-free policies in developing countries in developing countries 25% to the Department of the Treasury to be sold at auction with the proceeds deposited in the Treasury
S. 2724
Cap-and-trade system for
Fossil-fuel-fired
2001 CO2
Al otted to covered
Determined by
No specific
No specific
Carper
CO2 emissions from
electric generating
emission
sources based on
EPA
provision
provision
May 4, 2006
electricity sector; also
facilities that have a
levels by
previous years emission
addresses other air
capacity of greater
2015
levels
pol utants (mercury, sulfur
than 25 megawatts
dioxide, nitrogen oxide)
and generate electricity for sale
H.R. 5642
Cap-and-trade system for
Determined by EPA
1990 GHG
Determined by the
No specific
No specific
EPA to
Waxman
GHG
levels for
President based on plan provision
provision
promulgate
June 20, 2006
covered
submitted to Congress;
additional
sources by
sel via auction and
regulations to
2020; 80%
distribute to non-
reduce GHG
below 1990
covered sources to
emissions,
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 by
achieve specified goals:
including
2050
maximize public
performance
benefit, mitigate energy
standards,
costs to consumers,
efficiency
provide worker
standards,
transition assistance,
technology
among others
requirements, among others; directs Department of Energy to promulgate renewable portfolio standards
S. 3698
Directs EPA to issue
Determined by EPA
1990 GHG
Determined by EPA;
No specific
No specific
Directs EPA to
Jeffords
regulations to meet GHG
levels by
al owances to covered
provision
provision;
issue CO2
July 20, 2006
emissions goals; may include
2020; 80%
entities; remaining
al owances may
emissions
a market-based approach
below1990
al owances to
be al otted to
standards for
levels by
households,
companies that
vehicles and
2050
communities, and other
experience
CO2 emissions
groups for various
disproportionate
standards for
objectives
impacts from
new power
lower-carbon
plants, create
economy
low-carbon electricity generation standards and trading program, promulgate
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 efficiency standards, and establish renewable energy portfolio standards
S. 4039
Cap-and-trade system for
Determined by EPA
1990 GHG
Determined by the
No specific
No specific
No specific
Kerry
GHG emissions
through a rulemaking
levels for
President; Congress
provision
provision
provision
Sept. 29, 2006
process
covered
may enact alternative
sources by
plan within one year
2020
Source: Prepared by CRS.
CRS-16
Table 3. GHG Emission Reduction Proposals: 110th Congress
Ordered Chronological y 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
Cap-and-trade
Electric power,
1990 GHG
Determined by EPA
Up to 15% of
No specific
No specific provision
Lieberman
system for GHG
industrial, or
levels for
submitted
provision
Jan. 12, 2007
emissions from
commercial entities that covered
al owances can
multiple sectors
emit over 10,000
sources by
come from
mtCO2e annual y; any
2020,
domestic or
refiner or importer of
reduced by
international
petroleum products for
the level of
offsets; if offsets
transportation use that,
emissions
account for 15%
when combusted, wil
from non-
of al owances, at
emit over 10,000
covered
least 1.5% must
mtCO2e annual y; and
sources
come from
any importer or
agricultural
producer of HFC, PFC,
sequestration
and SF6 that, when used, wil emit over 10,000 mtCO2e
S. 309
Determined by
Determined by EPA
1990 GHG
Determined by EPA
No specific
No specific
GHG emission
Sanders
EPA, but must be through a rulemaking
levels for al
provision
provision
standards for
Jan. 16, 2007
a market-based
process
sources by
vehicles, new electric
program for
2020
power plants, and an
GHG emissions
energy efficiency performance standard
S. 317
Cap-and-trade
Fossil-fuel-fired electric
5% below
Initial y provided to
Up to 25% of
No specific
No specific provision
Feinstein
system for GHG
generating facilities with
2001 GHG
covered entities at
required
provision
Jan. 17, 2007
emissions from
a capacity of greater
levels for
no cost; percentage
reductions may
electricity sector
than 25 megawatts
electric
of al owances sold
be achieved with
via auction gradual y
EPA-approved
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: by 2036,
international
2020
100% sold via
credits
auction; activities funded by auction revenues include technology development and energy efficiency
H.R. 620
Cap-and-trade
Electric power,
1990 GHG
Determined by EPA
Up to 15% of
No specific
No specific provision
Olver
system for GHG
industrial, or
levels for
al owance
provision
Jan. 22, 2007
emissions from
commercial entities that covered
submission can
multiple sectors
emit over 10,000
sources by
come from
mtCO2e annual y; any
2020,
domestic and/or
refiner or importer of
reduced by
international
petroleum products for
the level of
offsets
transportation use that,
emissions
when combusted, wil
from non-
emit over 10,000
covered
mtCO2e annual y; and
sources
any importer or producer of HFCs, PFCs, or SF6 that, when used, wil emit over 10,000 mtCO2e
S. 485
Cap-and-trade
Determined by EPA
1990 GHG
Determined by the
No specific
No specific
No specific provision
Kerry
system for GHG
through a rulemaking
levels for
President; Congress
provision
provision
Feb. 1, 2007
emissions
process
covered
may enact
sources by
alternative plan
2020
within one year
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
Cap-and-trade
Determined by EPA
1990 GHG
Determined by the
No specific
No specific
GHG emission
Waxman
system for GHG
through a rulemaking
levels for al
President; Congress
provision
provision
standards for
Mar. 20, 2007
emissions
process
sources by
may enact
vehicles, energy
2020
alternative plan
efficiency standards,
within one year
renewable portfolio standards
H.R. 2069
Tax starting at
Manufacturers,
Tax rate
No specific
NA
No specific
No specific provision
Stark
$10/short ton of
producers, or
freeze if CO2
provision
provision
Apr. 26, 2007
carbon content
importers who sel a
emissions do
in taxable fuels,
taxable fuel, which
not exceed
which equates to includes coal,
20% of U.S.
approximately
petroleum and
1990 CO2
$2.70/tCO2
petroleum products,
emissions by
emissions
and natural gas
2020
The rate increases $10 per year (in nominal dol ars)
S. 1766
Cap-and-trade
Petroleum refineries,
1990 GHG
In 2012, 53% of
Unlimited use of
International
No specific provision
Bingaman
system for GHG
natural gas processing
levels for
al owances al ocated
domestic offsets;
reserve
July 11, 2007
emissions from
plants, and imports of
covered
to covered and
international
al owances must
multiple sectors
petroleum products,
sources by
certain industrial
offsets limited to
accompany
with al owance
coke, or natural gas;
2020
entities
10% of a
imports of any
price ceiling: in
entities that consume
23% al ocated to
regulated entity’s
covered GHG
2012, $12/ton,
more than 5,000 tons of
states and for
emissions target
intensive goods
increasing by 5%
coal a year; importers
sequestration and
and primary
annual y plus
of HFCs, PFC, SF6,
early reduction
products to the
inflation
N2O, or products
activities
United States
containing such
Least developed
compounds, and adipic
24% are auctioned
nations or those
acid and nitric acid
to fund low-income
that contribute
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
assistance, carbon
no more than
smelters, and facilities
capture and storage,
0.5% of global
that emit HFCs as a
and adaptation
emissions are
byproduct of HCFC
activities
excluded
production
The percentage auctioned increases steadily, reaching 53% by 2030
H.R. 3416
Tax on CO2
Manufacturers,
No specific
In first year (2008),
Al ows for
No specific
No specific provision
Larson
content on fossil
producers, or
provision
approximately 76%
domestic offset
provision other
Aug. 3, 2007
fuels, starting at
importers of coal,
would support a
projects (as
than direct
$15/short ton
petroleum, and natural
payrol tax rebate
prescribed by the
assistance to
CO2 emissions,
gas
16% would fund
Secretary of the
affected
increasing by
clean energy
Treasury) to be
industries
10% annual y
technology
submitted as tax
(determined by
plus inflation
credits or tax
the Secretaries
8% would support
refunds
of the Treasury
affected industry
and Labor)
transition assistance (declining to zero by 2017)
H.R. 4226
Cap-and-trade
Electric power,
85% of 2006
Determined by EPA
Up to 15% of
The President
No specific provision
Gilchrest
system for GHG
industrial, or
GHG levels
al owance
may establish a
Nov. 15, 2007
emissions from
commercial entities that from covered
submission can
program to
multiple sectors
emit over 10,000
sources,
come from
require
A Carbon
mtCO2e annual y;
reduced by
domestic and/or
importers to pay
Market Efficiency refiners or importers of
the level of
international
the value of
Board may
petroleum products for
emissions
offsets
GHGs emitted
implement cost-
transportation use that,
from non-
during the
relief measures
when combusted, wil
covered
production of
emit over 10,000
goods or
mtCO2e annual y; and
services
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 or producers
sources by
imported into
of HFCs, PFCs, or SF6
2020
the United
that, when used, wil
States from
emit over 10,000
countries that
mtCO2e
have no comparable emission restrictions to those of the United States
S. 2191
Cap-and-trade
Producers or importers
Emission cap
In 2012: 40% of
Up to 15% of
International
Low carbon fuel
Lieberman
system for GHG
of petroleum or coal-
for covered
al owances al ocated
al owance
reserve
standard for
Oct. 18, 2007
emissions from
based liquid or gaseous
sources in
to covered electric
requirement may
al owances must
transportation fuels
Ordered
multiple sectors
fuel that emits GHGs,
2020 is 4.924
utilities, industrial
be achieved
accompany
reported by the
or facilities that
bil ion tCO2e
facilities, and coops
through domestic
imports of any
Senate
produce or import
(19% below
9% al ocated to
offsets;
covered GHG-
Committee on
more than 10,000
2005 levels
states for
international
intensive goods
Environment
mtCO2e of GHG
for covered
conservation, extra
offsets can satisfy
and primary
and Public
chemicals annual y;
sources)
reductions, and
an additional 15%
products to the
Works on Dec.
facilities that use more
other activities
United States
5, 2007
than 5,000 tons of coal
Least developed
annual y; natural gas
11.5% for various
nations or those
processing plants or
sequestration
that contribute
importers (including
activities
no more than
liquid natural gas
10% al ocated for
0.5% of global
[LNG]); or facilities that
electricity consumer
emissions are
emit more than 10,000
assistance
excluded
mtCO2e of HFCs
5% for early
annual y as a byproduct
reductions
of HFC production
0.5% for tribal governments
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 auction of 6%) auctioned to fund technology deployment, carbon capture and storage, low-income and rural assistance, and adaptation activities
S. 3036
Cap-and-trade
Producers or importers
Emission cap
A share of
Up to 15% of
International
Low carbon fuel
Boxer
system for GHG
of petroleum- or coal-
for covered
al owances are
al owance
reserve
standard for
May 20, 2008
emissions from
based liquid or gaseous
sources in
auctioned for deficit
requirement may
al owances must
transportation fuels
S.Amdt. 4825
multiple sectors
fuel that emits GHGs,
2020 is 4.924
reduction increasing
be achieved
accompany
(in the nature of
A Carbon
or facilities that
bil ion tCO2e
from 6.1% in 2012
through domestic
imports of any
substitute) failed
Market Efficiency produce or import
(19% below
to 15.99% in 2031
offsets;
covered GHG-
a cloture motion
Board may
more than 10,000
2005 levels
and thereafter
international
intensive goods
on June 6, 2008
implement cost-
mtCO2e of GHG
for covered
The “remainder
al owances can
and primary
relief measures if
chemicals annual y;
sources)
al owances” are
satisfy an
products to the
necessary
facilities that use more
distributed in 2012
additional 15%
United States
than 5,000 tons of coal
(adjusted in future
Least developed
annual y; natural gas
years) as fol ows:
nations or those
processing plants or
that contribute
importers (including
38% of al owances
no more than
LNG); or facilities that
to covered electric
0.5% of global
emit more than 10,000
utilities, industrial
emissions are
mtCO
facilities, and co-ops
2e of HFCs
excluded
annual y as a byproduct
10.5% to states for
of HFC production
conservation, extra reductions, and other activities
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 sequestration activities 11% al ocated for electricity and natural gas consumer assistance 5% for early reductions 0.5% for tribal governments 1% for methane reduction projects 21.5% (plus an early auction of 5%) auctioned to fund technology deployment, carbon capture and storage, low income and rural assistance, and adaptation activities, as wel as program management
H.R. 6186
Cap-and-trade
Electric power or
Emission cap
Between 2012 and
Up to 15% of
International
EPA to develop
Markey
system for GHG
industrial facilities that
for covered
2019, 6% of
al owance
reserve
emission
June 4, 2008
emissions from
emit over 10,000
sources in
al owances would
requirement may
al owances must
performance
multiple sectors
mtCO2e; producers or
2020 is 4.983
be distributed to
be achieved
accompany
standards for certain
importers of petroleum
bil ion tCO2e
manufacturers of
through domestic
imports of any
non-covered entities
or coal-based liquid
offsets;
covered GHG
products that, when
international
intensive goods
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
“trade-exposed
offsets or
and primary
that exceed 10,000
over 10,000 mtCO2e
primary goods”
al owances can
products to the
tCO2e per year
annual y; local
Remaining 94%
satisfy an
United States
Low-carbon fuel
distribution companies
auctioned (100% by
additional 15%
Least developed
standard for
that deliver natural gas
2020), with
nations or those
transportation fuels
that, when combusted,
revenues distributed
that contribute
wil emit over 10,000
Performance
(in FY2010-FY2019)
no more than
tCO
standard for certain
2e annual y;
as fol ows:
0.5% of global
producers or importers
coal-fired power
emissions are
of HFCs, PFCs, SF
58.5% to middle-
plants to capture and
6, or
excluded
NF
and low-income
geological y sequester
3 that, when used,
wil emit over 10,000
households as tax
not less than 85% of
mtCO
credits and/or
their CO2 emissions
2e; sites at which
CO
rebates
2 is geological y
sequestered on a
12.5% for
commercial scale
development and promotion of low-carbon technology 12.5% for energy efficiency programs 4.5% for biological sequestration 1.5% for worker transition assistance 2% for domestic adaptation efforts 1.5% for protection of natural resources 1.5% for international forest protection
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 international clean technology 2% for international adaptation efforts
H.R. 6316
Cap-and-trade
Producers or importers
Emission cap
In 2012, 5% of the
Up to 10% of
International
EPA to promulgate
Doggett
system for GHG
of petroleum- or coal-
for covered
al owances are
al owance
reserve
regulations that
June 19, 2008
emissions from
based liquid or gaseous
sources in
al ocated to electric
requirement may
al owances must
address emissions in
multiple sectors
fuel that emits GHGs,
2020 is 6.087
generators; 10% are
be achieved
accompany
uncovered sectors
A Carbon
or facilities that
bil ion
al ocated to energy
through domestic
imports of any
Market Efficiency produce or import
mtCO2e
intensive industries
offsets;
covered GHG-
Board may
more than 10,000
Remaining
international
intensive goods
implement cost-
mtCO2e of GHG
al owances are
al owances can
and primary
relief measures
chemicals annual y;
auctioned with
satisfy an
products to the
facilities that use more
revenues used for
additional 15%
United States
than 5,000 tons of coal
the fol owing:
Least developed
annual y; natural gas
nations or those
processing plants or
54% for consumer
that contribute
importers (including
assistance (66% of
no more than
LNG); or, facilities that
which goes towards
0.5% of global
emit more than 10,000
providing health
emissions are
mtCO
insurance coverage,
2e of HFCs
excluded
annual y as a byproduct
the remainder for
of HFC production
rebates and tax relief) 15% of revenues for deficit reduction 11.4% for international activities
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 efficiency 7% for natural resource adaptation 7% for green energy research 4% for worker assistance 3% for forestry and agricultural activities 2.7% for states and tribes 2% for transportation alternatives 1% for early action 0.4% for education
Source: Prepared by CRS.
CRS-26
Table 4. GHG Emission Reduction Proposals: 111th Congress
Ordered Chronological y 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
Tax on CO2
Manufacturers,
Tax freezes if
No specific
NA
No specific
No specific provision
Stark
content in fossil
producers, or
CO2
provision
provision
Jan. 15, 2009
fuels, starting at
importers who sel a
emissions do
$10/short ton,
taxable fuel, which
not exceed
increasing by $10 includes coal,
20% of U.S.
per year
petroleum and
1990 CO2
petroleum products,
emissions by
and natural gas
2020
H.R. 1337
Tax on CO2
Manufacturers,
EPA is to
In first year:
Instructs
Department of
No specific provision
Larson
content in fossil
producers, or
establish
76% would support
Department of
the Treasury
Mar. 5, 2009
fuels, starting at
importers of coal,
(within five
a payrol tax rebate
the Treasury (in
imposes a
$15/short ton,
petroleum, and natural
years after
consultation with
carbon
increasing by $10 gas
enactment)
16% would fund
Department of
equivalency fee
each year
annual CO
clean energy
2
Energy) to submit
on imported
emissions target
emission
technology
a report of
carbon-intensive
is not met
targets in
8% would support
qualified offset
goods, including
order to
affected industry
projects but does
steel, aluminum,
reach goal of
transition assistance
not al ow for
and paper; fee
80% below
(declining to zero by projects to
based on
2005 CO2
2017)
generate tax
emissions
emissions by
credits
associated with
2050
production of carbon-intensive goods
H.R. 1666
Cap-and-trade
Not explicitly defined
Target of 4.9
Oversight board
No specific
No specific
No specific provision
Doggett
system for GHG
bil ion
administers auctions provision
provision
Mar. 23, 2009
emissions, with
mtCO2e for
to manage the
an oversight
covered
al owance price
board to manage
path; precise use of
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
entities by
auction revenues is
between 2012
2020
not specified
and 2019
H.R. 1683
Hybrid cap/tax
Coal producers,
25% below
Establishes trust
No specific
Department of
No specific provision
McDermott
system for GHG
petroleum refineries;
2005 GHG
fund that would
provision
the Treasury
Mar. 24, 2009
emissions:
producers of other
emissions by
receive
imposes a GHG
covered persons
GHG emission
2020
appropriations equal
emission permit
must purchase
substances (including
to revenue received
equivalency fee
an emission
natural gas, among
by sel ing emission
on imported
permit from the
others); importers of
permits
carbon-intensive
Department of
GHG emission
Precise use of the
goods, including
the Treasury
substances
revenue is not
steel, aluminum,
when a “GHG
specified
and paper
emission
substance” is produced or enters the United States; permits may not be sold or exchanged; price for emission permits based on achieving annual emission targets
H.R. 1862
Cap-and-trade
Person who makes the
25% below
100% of al owances
No specific
Department of
No specific provision
Van Hol en
system for CO2
first sale in United
2005 CO2
sold via auction;
provision
the Treasury
Apr. 1, 2009
emissions from
States of coal, oil,
emissions by
proceeds used to
imposes a
multiple sectors
natural gas, and any
2020
fund consumer
carbon
fossil-fuel-derived
dividend payments;
equivalency fee
products used as a
each month, every
on imported
combustible fuel
person with a Social
carbon-intensive
Security number
goods, including
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 an
steel, aluminum,
equal payment
and paper
H.R. 2380
Tax on fossil
Manufacturers,
No specific
Tax revenue used
No specific
Imposes a tax on No specific provision
Inglis
fuels, starting at
producers, or
provision
to offset a
provision
“imported
May 13, 2009
$15/short ton of
importers of coal,
corresponding
taxable
CO2 emissions,
petroleum, and natural
reduction in payrol
products” in
and increasing by
gas
tax rates (employee,
relation to fossil
approximately
employer, and self-
fuels used or the
6.5% each year,
employed)
CO2 emissions
plus cost-of-
generated during
living
the product’s
adjustments
manufacturing process
H.R. 2454
Cap-and-trade
Electricity generators,
17% below
Emission al owance
In 2016,
Energy-intensive,
Establishes a separate
Waxman-Markey
system for GHG
various fuel producers
2005
value distributed (as
approximately
trade-exposed
cap-and-trade program
May 15, 2009
emissions from
and importers,
emissions
no-cost al owances
27% of an entity’s
industries to
that controls HFC
Reported by the
multiple sectors
fluorinated gas
from covered
or auction revenue)
al owance
receive
emissions
Committee on
producers and
sources by
in the fol owing
obligation can be
al owances at no
Directs EPA to
Energy and
importers, geological
2020
manner in 2016:
satisfied with
cost until phased
establish emission
Commerce on June
sequestration sites,
30% (at minimum)
offsets; this
out in mid-
performance standards
5, 2009
various industrial
to electricity LDCs;
percentage
2030s; and
for select sources not
sources, and local
increases to 36%
Passed the House
0.5% for smal
EPA to
covered by the
distribution companies
by 2030
on June 26, 2009
electric LDCs; 9%
promulgate rules
emissions cap
(LDCs) that deliver
to natural gas LDCs; Up to half of an
establishing an
For more
natural gas
1.5% to states for
entity’s offsets
international
information, see
Covered entity
home-heating oil
can come from
reserve
CRS Report
coverage is phased in by
consumers
domestic sources
al owance
R40643,
category so that al of
and up to half
system for any
Greenhouse Gas
15% directly to low-
the above are under the
from international
covered good of
Legislation:
income consumers
cap in 2016
sources
an eligible
Summary and
13.4% to energy-
industrial sector
Analysis of H.R.
intensive, trade-
Unless otherwise
2454 as Passed by
exposed industries;
determined by
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
EPA, covered
from a covered
Representatives,
merchant coal units; entities may use
country
coordinated by
2% to petroleum
unlimited amount
Exemptions are
Mark Holt and
refineries plus
of international
provided for (1)
Gene Whitney
0.25% for smal
al owances from
least developed
business refineries;
“qualifying
countries, (2)
up to 1.5% for
programs”
countries that
certain long-term
emit less than
power contract
0.5% of global
operators
GHG emissions,
7.1% to states to
and (3) countries
support renewable
meeting specific
energy and energy
criteria
efficiency efforts 6% to promote technological advances 5% to reduce international deforestation 0.2% for deficit reduction 5% to further other objectives
S. 1733
Cap-and-trade
Electricity generators,
20% below
Emission al owance
In 2016,
Trade-exposed,
Establishes a separate
Kerry-Boxer
system for GHG
various fuel producers
2005
value is distributed
approximately
carbon-intensive
cap-and-trade program
Sept. 30, 2009
emissions from
and importers,
emissions
in the fol owing
35% of an entity’s
industries to
that controls HFCs
Reported by the
multiple sectors
fluorinated gas
from covered
manner in 2016:
al owance
receive
Committee on
producers and
sources by
25.8% (at minimum)
submission can
al owances at no
Environment and
importers, geological
2020
to electricity LDCs;
comprise offsets;
cost; in addition,
Public Works (a
sequestration sites,
up to 75% of an
the bil states:
various industrial
entity’s offsets
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, and LDCs that
0.94% for smal
can come from
“It is the sense
Amendment” in
deliver natural gas
electric LDCs
domestic sources
of the Senate
the nature of
Coverage is phased in
7.7% to natural gas
and up to 25%
that this Act wil
substitute) on Nov.
by category so that al
LDCs
from international
contain a trade
5, 2009
of the above are under
sources
title that wil
1.3% to states for
the cap in 2016
include a border
home-heating oil
Unless otherwise
measure that is
consumers
determined by EPA, unlimited
consistent with
12.9% directly to
use of
our international
low-income
international
obligations and
consumers
al owances from
designed to
12.1% to energy-
“qualifying
work in
intensive, trade-
programs”
conjunction with
exposed industries
provisions that
up to 3.0% to
al ocate
merchant coal units
al owances to energy-intensive
0.64% to petroleum
and trade-
refineries plus
exposed
0.86% for smal
industries”
business refineries and 0.43% for medium refineries up to 1.3% for certain long-term power contract operators 5.97% to states to support renewable energy and energy efficiency efforts
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 technological advances 1.92% for GHG reductions in the transportation sector 10.3% for deficit reduction 8% to further other objectives
S. 2877
Hybrid cap/tax
Fossil fuel producers
20% below
Al carbon shares
Offsets are not
Treasury may
No specific provision
Cantwel
system for CO2
(e.g., mines, wel s) and
2005 GHG
sold in auctions
al owed for
impose fees for
Dec. 11, 2009
emissions:
importers who
levels from al
Subject to the
compliance
the “production
covered entities
introduce “fossil
sources by
appropriations
purposes
process carbon”
submit “carbon
carbon” into the United 2020
process, 75% of the
associated with
shares” for CO2
States economy
revenue would be
commodities
emissions
distributed monthly
imported into
associated with
in non-taxable
the United
the use of the
dividends to al
States
fossil fuels
legal y residing
Trading of
individuals in the
carbon shares is
United States
restricted to a
Subject to the
dedicated
appropriations
exchange
process, 25% could
established by
be used to support
Treasury
a myriad of policy
Price ceiling for
objectives, including
carbon shares:
worker transition
initial y at
assistance,
$21/tCO2 in
adaptation,
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,
technology
additional shares
development,
made available,
energy efficiency,
and this revenue
biological
would support
sequestration, and
mitigation from
deficit reduction
non-covered entities
Kerry-Lieberman
Cap-and-trade
Electricity generators,
17% below
Emission al owance
In 2016,
Trade-exposed,
Establishes a separate
Discussion Draft
system for GHG
various fuel producers
2005
value distributed in
approximately
carbon-intensive
cap-and-trade program
May 12, 2010
emissions from
and importers,
emissions
the fol owing
35% of an entity’s
industries to
that controls HFC
(considered by
multiple sectors
fluorinated gas
from covered
manner in 2016:
al owance
receive
many to be the
producers and
sources by
30% (at minimum)
submission can
al owances at no
primary
importers, geological
2020
to electric LDCs;
comprise offsets;
cost
legislative vehicle
sequestration sites,
9% for natural gas
up to 75% of an
EPA to establish
in the Senate at
various industrial
LDCs; 1.5% to
entity’s offsets
an international
the time)
sources, and LDCs that
states for home-
can come from
reserve
deliver natural gas
heating oil and
domestic sources
al owance
Covered entity
propane consumers; and up to 25%
system for
coverage is phased in by
from international
12.3% directly to
covered goods
category so that al of
sources
low-income
of an eligible
the above are under the
consumers
Unless otherwise
industrial sector
cap in 2016
determined by
from a covered
15% to trade-
EPA, unlimited
country
exposed industries;
use of
up to 0.5% to
Exemptions are
international
merchant coal units;
provided for (1)
al owances from
3.75% to petroleum
least developed
“qualifying
refineries; up to
countries, (2)
programs”
4.5% to long-term
countries that
power contract
emit less than
operators
0.5% of global GHG emissions, and (3) countries
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
meeting the
support renewable
specific criteria
energy and energy efficiency efforts 4% to promote technological advances 9.2% to support transportation infrastructure and efficiency 6.75% for deficit reduction 1.5% auctioned to help mitigate against high al owance prices
Source: Prepared by CRS.
CRS-34
Table 5. GHG Emission Reduction Proposals: 112th Congress
Ordered Chronological y 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
Tax on CO2
Manufacturers,
80%
Tax revenue is
No specific
Border
No specific provision
Stark
emissions from
producers, or
reduction of
distributed annual y
provision
adjustment fees
Oct. 24, 2011
combustion of
importers who sel coal,
CO2 emission
in pro rata
for comparable
fossil fuels and
petroleum and
levels in 1990 payments to
imported
other materials
petroleum products,
individuals with a
products
Rate starts at
natural gas, biomass,
taxpayer
$10/short ton of
municipal solid waste,
identification
CO2 emissions,
and any other organic
number
increasing by $10 material sold for energy per year until
use
emissions target reached
H.R. 6338
Hybrid cap/tax
Coal producers,
Average
75% of the permit
No specific
Unless an
No specific provision
McDermott
approach on
petroleum refineries,
emissions
revenue is used to
provision
exporting nation
Aug. 2, 2012
GHG emissions:
first sel er of natural
between
send monthly
has implemented
covered entities
gas, producers and
2015 and
dividend payments
equivalent
purchase permits
importers of GHG
2019 equal to to taxpayers
measures,
from the
emission substances
GHG
25% retained for
imports of
Department of
emissions in
deficit reduction
carbon-intensive
the Treasury for
2005 by 2020
goods wil be
expected
subject to a
emissions
fee—determined
associated with
by the Secretary
combustion or
of the
use of covered
Treasury—that
material (e.g.,
is equivalent to
fossil fuels)
the costs domestic producers of
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 cannot
comparable
be sold or
products incur
traded
due to the
Price floor and
carbon price
price ceiling (i.e.,
Exporters of
price col ar),
carbon-intensive
ranges between
goods may
$6.25 and $18.75
receive a
in 2015
payment related to the increased costs of inputs (i.e., fossil fuels) subject to the fee
Source: Prepared by CRS.
CRS-36
Table 6. GHG Emission Reduction Proposals: 113th Congress
Ordered Chronological y 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
Upstream tax/fee EPA would impose a fee
GHG
60% distributed to
No specific
A carbon
Directs EPA to
Sanders
on fossil fuels
on coal, petroleum, and
emissions at
EPA to provide
provision
equivalency fee
submit report to
Feb. 14, 2013
based on their
natural gas produced or
80% below
monthly rebates to
would apply to
Congress describing
carbon content
imported into the
2005 levels
legal residents
imports of
fugitive methane
United States
by 2050
40% finances a trust
carbon-
emissions related to
fund that distributes
pol ution-
leaks in natural gas
the fol owing
intensive goods
infrastructure and
amounts annual y
recommending ways
for 10 years:
to address these leaks; directs EPA to
$7.5 bil ion to
enter agreement with
mitigate economic
the National
impacts of Energy
Academy of Sciences
Intensive Trade
to study GHG
Exposed (EITE)
emissions from non-
industries (25%
covered sources and
must be energy
make
efficiency
recommendations for
investments in EITE
reducing these
industries)
emissions
$5 bil ion to support the Weatherization Assistance Program $1 bil ion for job training and transition assistance $2 bil ion for Advanced Research
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-Energy Any remaining funds in the trust fund are applied to deficit reduction Revenues from the carbon equivalency fee on imports: 50% to EPA to distribute to state/local programs for adaptation, infrastructure improvement, and environmental protection 50% to the Department of Transportation to support state/local critical infrastructure and transportation projects that reduce vehicular traffic
S. 2940
Fee on fossil
Fee applies to coal at
Fee continues Fee revenue used to No specific
Imports of
Separate fee for non-
Whitehouse
fuels based on
mines, petroleum at
until national
create the American
provisions
carbon-intensive
CO2 GHG emissions
Nov. 19, 2014
their carbon
refineries, natural gas at
GHG
Opportunity Fund,
goods subject to
at facilities that (1)
processors, imported
emissions are
appropriations from
a fee—
are subject to GHG
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
fossil fuels, and facilities
80% below
the fund could
determined by
reporting
certain facilities
that (1) are subject to
2005 levels
support the
the Secretary of
requirements in 40
Fee set at
GHG reporting
fol owing
the Treasury—
C.F.R. Part 98 and (2)
$42/mtCO2
requirements in 40
(percentages not
that is equivalent
emit more than
emissions in
C.F.R. Part 98 and (2)
specified):
to the difference
25,000 mtCO2e (not
2015, increasing
emit more than 25,000
income assistance
in (1) costs
including CO2
by 2% plus
tons of CO2 annual y
to low-income
domestic
emissions)
inflation each
households facing
producers of
Additional fee for
year
disproportionate
comparable
methane emissions
energy costs
products incur
from fossil fuel
due to the
tax cut offsets
extraction,
carbon price and distribution, and
Social Security
(2) the
combustion
benefit increases
comparable
tuition assistance-
costs (e.g., GHG
infrastructure
fees) imposed by
improvements
the nation
dividends to
exporting the
individuals and
material
families
Exporters of
transition assistance
carbon-intensive
to workers in
goods may
energy-intensive
receive a refund
industries
related to the increased costs
climate mitigation
of inputs (i.e.,
and adaptation
fossil fuels)
national debt
subject to the
reduction
fee
Source: Prepared by CRS.
CRS-39
Table 7. GHG Emission Reduction Proposals: 114th Congress
Ordered Chronological y 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
Hybrid cap/tax
Coal producers,
Average
100% of the permit
No specific
Unless an
No specific provision
McDermott
approach on
petroleum refineries,
emissions
revenue is used to
provision
exporting nation
Feb. 13, 2015
GHG emissions:
first sel er of natural
between
send monthly
has implemented
covered entities
gas, producers and
2016 and
dividend payments
equivalent
purchase permits
importers of GHG
2020 equal to to taxpayers
measures,
from the
emission substances
90% of GHG
imports of
Department of
emissions in
carbon-intensive
the Treasury for
2005 by 2020
goods wil be
expected
subject to a
emissions
fee—determined
associated with
by the Secretary
fossil fuel use
of the
Permits cannot
Treasury—that
be sold or
is equivalent to
traded
the costs domestic
Price floor and
producers of
price ceiling,
comparable
ranging between
products incur
$18.75 and
due to the
$31.25 in 2017,
carbon price
increasing each year
Exporters of carbon-intensive goods may receive a payment related to the increased costs of inputs (i.e., fossil fuels)
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 fee
H.R. 2202
Imposes an
Tax applies to GHG
No specific
Distributes monthly
A tax refund is
The Secretary of
No specific provision
Delaney
excise tax on
emissions associated
provisions
energy refund
provided for
the Treasury
May 1, 2015
GHG emissions
with fossil fuel
payments to
GHG emissions
may impose an
Tax starts at
combustion and GHG
households based
that are captured
equivalency fee
$30/mtCO
emissions from facilities
on the household’s
and permanently
on the person
2e,
increasing each
that (1) are subject to
gross income level;
sequestered
importing a good
year by 4% plus
GHG reporting
households with
that would have
inflation
requirements in 40
incomes up to 200%
had an increased
C.F.R. Part 98 and (2)
above poverty line
cost (imposed by
emit more than 25,000
are eligible, but
the carbon tax)
tons of GHGs annual y
higher-income
if the good were
Directs the Treasury
households may
produced in the
Secretary to apply the
receive scaled
United States
tax at natural
refunds under
Exporters of
“chokepoints” in the
certain conditions;
carbon-intensive
supply chain in a way
payments are based
goods may
that maximizes the
on estimates
receive
coverage of the tax on
(calculated by the
compensation
sources of emission
Energy Information
for losses
while minimizing the
Administration) of
related to the
burden on
loss of purchasing
tax system
administration and
power due to the
compliance
carbon tax During the first 10 years of the tax, 2% of the revenues may be used to provide assistance to workers in the coal
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 by the act Although not explicitly tied to the GHG tax revenue, the bil would gradual y reduce the highest tax rate on corporate income from 35% to 28%
S. 1548
Fee on fossil
Fee applies to coal at
Fee continues The bil reduces the
No specific
Imports of
Separate fee for
Whitehouse
fuels based on
mines, petroleum at
until national
highest tax rate on
provisions
carbon-intensive
fluorinated GHGs
June 10, 2015
their carbon
refineries, natural gas at
GHG
corporate income
goods subject to
Separate fee for
content and on
processors, imported
emissions are
from 35% to 29%,
a fee—
GHGs (other than
certain facilities
fossil fuels, and facilities
80% below
provides an annual
determined by
CO2 and fluorinated
for GHG
that (1) are subject to
2005 levels
tax credit for each
the Secretary of
gas emissions) set at
emissions
GHG reporting
individual, provides
the Treasury—
$45/mtCO2e in 2016,
requirements in 40
an equivalent benefit
that is equivalent
increasing by 2% plus
C.F.R. Part 98 and (2)
to individuals not
to the difference
inflation each year
emit more than 25,000
eligible for the tax
in (1) costs
tons of GHGs
credit, provides up
domestic
Additional fee for
to $20 bil ion in
producers of
methane emissions
annual cost-
comparable
from fossil fuel
mitigation grants to
products incur
extraction,
states to be used to
due to the
distribution, and
assist low-income
carbon price,
combustion (as
and rural
and (2) the
determined by
households with
comparable
Secretary of the
energy costs and
costs (e.g., GHG
Treasury)
support job training
fees) imposed by
and worker
the nation
assistance programs
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 material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee
S. 2399
Fee on fossil
A carbon content fee is
Target of 5.8
Distributes
No specific
A carbon
Establishes the
Sanders
fuels based on
imposed on
bil ion metric
col ected revenue
provisions
equivalency fee
Interagency Climate
Dec. 10, 2015
carbon content
manufacturers,
tons in 2020,
from fees in equal
would apply to
Council to monitor
Fee starts at $15
producers, or
which is
quarterly rebates to
imports of
GHG emission
mtCO
importers of a carbon
equivalent to
each citizen or
carbon-
progress and issue
2e,
increasing
pol uting substance,
20% below
permanent resident;
pol ution-
regulations to help
annual y by $2 to which includes fossil
2005 CO2
Secretary of the
intensive goods,
meet reduction
$4, until reaching fuels; carbon content
emissions
Treasury to issue
as determined
targets; creates a
$73 in 2035;
determined by the
from fossil
regulations
by the Secretary
grant program to
increasing
Secretary of the
fuel
implementing rebate
of the Treasury
promote no-til
thereafter by 5%
Treasury
combustion
system; the rebates
farming practices and
plus inflation
are phased out and
a nitrogen uptake
eliminated for
pilot program
households earning over $100,000/year (with annual inflation adjustments); fees from imported materials would be
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 other objectives, including energy efficiency
H.R. 4283
Tax on fossil
Tax imposed on
Tax ceases if
Tax revenue used
No specific
Imports of
No specific
McNerney
fuels based on
producers, miners, or
life-cycle
to provide quarterly
provisions
goods containing
provisions
Dec. 17, 2015
their carbon
importers of fossil fuels
emissions
dividends to every
or produced
content “of the
from fossil
person with a Social
using fossil fuels
life cycle
fuels reach
Security number
subject to a
emissions”
50% below
carbon
Tax starts in
2005 levels
equivalency
2016 at $15 per
(as
fee—determined
metric ton of
determined
by the Secretary
CO
by the
of the
2 emissions;
tax rate
Secretary of
Treasury—that
increases
the Treasury
is equal to the
annual y by
in
cost that U.S.
$10/ton; if
consultation
producers of a
emission targets
with EPA)
comparable
are met, tax
good incur as a
ceases to apply
result of the U.S.
for four years;
carbon tax; this
tax reapplies if
fee expires if the
subsequent
exporting nation
targets not met
implements equivalent measures or if an international agreement requires equivalent measures
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 fossil fuels or materials that used fossil fuels during production or manufacture may receive a tax refund related to the increased costs of inputs (i.e., fossil fuels) subject to the carbon tax
Source: Prepared by CRS.
CRS-45
Table 8. GHG Emission Reduction Proposals: 115th Congress
Ordered Chronological y 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
Imposes an
Tax applies to GHG
No specific
Distributes monthly energy refund
A tax refund is
The Secretary of
Delaney
excise tax on
emissions associated
provisions
payments to households, based on
provided for
the Treasury may
Apr. 6, 2017
GHG emissions
with fossil fuel
the household’s gross income level;
GHG emissions
impose an
Tax starts at
combustion and GHG
households with incomes up to
that are captured equivalency fee on
$30/metric ton of emissions from
200% above poverty line are
and permanently
the person
CO
persons who (1) are
eligible, but higher-income
sequestered
importing a good
2e, increasing
each year by 4%
subject to GHG
households may receive scaled
that would have
plus inflation
reporting
refunds under certain conditions;
had an increased
requirements in 40
payments are based on estimates
cost (imposed by
C.F.R. Part 98 and (2)
(calculated by the Energy
the carbon tax) if
emit more than 25,000
Information Administration) of loss
the good is
tons of GHGs annual y
of purchasing power due to the
produced in the
Directs the Treasury
carbon tax
United States
Secretary to apply the
During the first 10 years of the tax,
Exporters of
tax at natural
2% of the revenues may be used to
carbon-intensive
chokepoints in the
provide assistance to workers in
goods may receive
supply chain in a way
the coal industry displaced by the
compensation for
that maximizes the
act
losses related to
coverage of the tax on
Although not explicitly tied to the
the tax system
sources of emission
GHG tax revenue, the bil would
while minimizing the
gradual y reduce the highest tax
burden on
rate on corporate income from
administration and
35% to 28%
compliance
S. 1639
Fee on fossil fuels Fee applies to coal at
Fee continues
The bil reduces the highest tax
No specific
Imports of carbon-
Separate fee
Whitehouse
based on their
mines, petroleum at
until national
rate on corporate income from
provisions
intensive goods
for fluorinated
July 26, 2017
carbon content
refineries, natural gas
GHG emissions
35% to 29%, provides an annual tax
subject to a fee—
GHGs
and certain
at processors,
credit for each individual, provides
determined by the
imported fossil fuels,
an equivalent benefit to individuals
Secretary of the
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 for GHG and facilities that (1)
are 80% below
not eligible for the tax credit,
Treasury—that is
Fee for facilities
emissions
are subject to GHG
2005 levels
provides up to $20 bil ion in annual
equivalent to the
that (1) are
Fee set at
reporting
cost-mitigation grants to states to
difference in (1)
subject to
$49/ton CO2
requirements in 40
be used to assist low-income and
costs domestic
GHG reporting
emissions in
C.F.R. Part 98 and (2)
rural households with energy costs
producers of
requirements
2018, increasing
emit more than 25,000
and support job training and
comparable
in 40 C.F.R.
by 2% plus
tons of GHGs annual y
worker assistance programs
products incur due Part 98 and (2)
inflation each
to the carbon
emit more than
year
price, and (2) the
25,000
comparable costs
mtCO2e
(e.g., GHG fees)
emissions
imposed by the
(other than
nation exporting
CO2 or
the material
fluorinated
Exporters of
GHGs)
energy-intensive
Additional fee
goods may receive
for GHG
a refund related to
emissions
the increased
resulting from
costs of inputs
venting, flaring,
(i.e., fossil fuels)
and leaking
subject to the fee
across the coal, natural gas, and petroleum supply chains (as determined by Secretary of the Treasury)
H.R. 3420
Fee on fossil fuels Fee applies to coal at
Fee continues
The bil reduces the highest tax
No specific
Imports of carbon-
Separate fee
Blumenauer
based on their
mines, petroleum at
until national
rate on corporate income from
provisions
intensive goods
for fluorinated
July 26, 2017
carbon content
refineries, natural gas
GHG emissions
35% to 29%, provides an annual tax
subject to a fee—
GHGs
and certain
at processors,
credit for each individual, provides
determined by the
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 for GHG imported fossil fuels,
are 80% below
an equivalent benefit to individuals
Secretary of the
Fee for facilities
emissions
and facilities that (1)
2005 levels
not eligible for the tax credit,
Treasury—that is
that (1) are
Fee set at
are subject to GHG
provides up to $20 bil ion in annual
equivalent to the
subject to
$49/ton CO2
reporting
cost-mitigation grants to states to
difference in (1)
GHG reporting
emissions in
requirements in 40
be used to assist low-income and
costs domestic
requirements
2018, increasing
C.F.R. Part 98 and (2)
rural households with energy costs
producers of
in 40 C.F.R.
by 2% plus
emit more than 25,000
and support job training and
comparable
Part 98 and (2)
inflation each
tons of GHGs annual y
worker assistance programs
products incur due emit more than
year
to the carbon
25,000
price and (2) the
mtCO2e (other
comparable costs
than CO2 or
(e.g., GHG fees)
fluorinated
imposed by the
GHGs)
nation exporting
Additional fee
the material
for GHG
Exporters of
emissions
energy-intensive
resulting from
goods may receive
venting, flaring,
a refund related to
and leaking
the increased
across the coal,
costs of inputs
natural gas, and
(i.e., fossil fuels)
petroleum
subject to the fee
supply chains (as determined by Secretary of the Treasury)
H.R. 4209
Tax on fossil
Tax applies to
No specific
Establishes a trust fund that would
No specific
The Secretary of
No specific
Larson
fuels based on
manufacturers,
provision
receive appropriations equal to tax
provisions
the Treasury shal
provisions
Nov. 1, 2017
their carbon
producers, or
revenue received in the Treasury;
impose a fee on
content
importers of coal,
the trust fund would provide
imports of carbon-
Tax set at
petroleum, and natural
annual funding for the fol owing
intensive goods;
$49/mtCO
gas
infrastructure programs:
the fee wil be
2 in
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
$50 bil ion (plus the Highway Trust
equivalent to the
by 2% plus
Fund shortfal ) for highway (80%)
cost that domestic
inflation each
and mass transit (20%);
producers incur
year
$5 bil ion for the Transportation
due to the carbon
Investments Generating Economic
tax; this fee
Recovery program;
expires if the
$3 bil ion for aviation;
exporting nation
$5 bil ion for passenger rail;
implements
$6 bil ion for harbors, waterways,
equivalent
flood protection, and dams;
measures or if an
$6 bil ion for wastewater and
international
drinking water; and
agreement
$3 bil ion for broadband
requires equivalent
In addition, the trust fund provides:
measures
$5 bil ion annual y for worker transition assistance in the fossil fuel industries; and 12.5% for an energy refund program that would provide monthly payments to households with incomes up to 150% of poverty line Any remaining revenues supports a consumer tax rebate for households with incomes up to 350% of the poverty line
S. 2352
Cap-and-trade
Covered materials
2020 limit:
Auction revenue distributed via
No specific
Unless an
EPA directed
Van Hol en
system for CO2
include crude oil, coal,
permits sold
quarterly dividend payments to al
provisions
exporting nation
to promulgate
Jan. 29, 2018
emissions from
natural gas, and
equal to 20%
persons with a valid Social Security
has implemented
regulations to
fossil fuel
products derived from
below 2005
number
equivalent
address other
combustion
measures, imports
GHG
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 sold
these materials used
2025 limit:
of carbon-
emissions that
through quarterly for combustion
permits sold
intensive goods
are not
auctions by the
Covered entities
equal to 30%
wil be subject to a
covered by the
Department of
include petroleum
below 2005 U.S.
fee—determined
permit
the Treasury
refineries and
CO2 emissions
by the Secretary of program;
Auction revenue
importers, coal mines
2030 limit:
the Treasury—
emissions
distributed to
and importers, and
permits sold
that is equivalent
“directly
individuals, often
natural gas deliverers
equal to 40%
to the costs
attributable to
described as a
(as reported on Energy
below 2005 U.S.
domestic
the production
“cap and
Information
CO
producers of
of animals for
2 emissions
dividend”
Administration Form
comparable
food or food
2040 limit:
approach
176) and some natural
products incur due products” are
permits sold
to the carbon
excluded
A permit reserve
gas processors
equal to 60%
price
and borrowed
below 2005 U.S.
permits from
CO
Exporters of
2 emissions
future years may
carbon-intensive
be used to help
goods may receive
stabilize auction
compensation for
prices
losses related to the permit system
H.R. 4889
Cap-and-trade
Covered materials
2020 target:
Auction revenue distributed via
No specific
Unless an
EPA directed
Beyer
system for CO2
include crude oil, coal,
reduce U.S.
quarterly dividend payments to al
provisions
exporting nation
to promulgate
Jan. 29, 2018
emissions from
natural gas, and
CO2 emissions
persons with a valid Social Security
has implemented
regulations to
fossil fuel
products derived from
to 20% below
number
equivalent
address other
combustion
these materials used
2005 levels
measures, imports
GHG
Permits sold
for combustion
2030 target:
of carbon-
emissions that
through quarterly Covered entities
40% below 2005
intensive goods
are not
auctions by the
include petroleum
levels
wil be subject to a
covered by the
Department of
refineries and
fee—determined
permit
the Treasury
importers, coal mines
by the Secretary of program;
and importers, and
the Treasury—
emissions
natural gas deliverers
that is equivalent
“directly
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
(as reported on Energy
to the costs
attributable to
distributed to
Information
domestic
the production
individuals, often
Administration Form
producers of
of animals for
described as a
176) and some natural
comparable
food or food
“cap and
gas processors
products incur due products” are
dividend”
to the carbon
excluded
approach
price
A permit reserve
Exporters of
and borrowed
carbon-intensive
permits from
goods may receive
future years may
compensation for
be used to help
losses related to
stabilize auction
the permit system
prices
S. 2368
Fee on fossil fuels Fee applies to coal at
Fee continues
The bil provides an annual tax
No specific
Imports of carbon-
Separate fee
Whitehouse
based on their
mines, petroleum at
until national
credit for each individual, provides
provisions
intensive goods
for fluorinated
Feb. 5, 2018
carbon content
refineries, natural gas
GHG emissions
an equivalent benefit to individuals
subject to a fee—
GHGs
and certain
at processors,
are 80% below
not eligible for the tax credit,
determined by the
Separate fee
facilities for GHG imported fossil fuels,
2005 levels
provides up to $10 bil ion in annual
Secretary of the
for GHGs
emissions
and facilities that (1)
cost-mitigation grants to states to
Treasury—that is
(other than
Fee set at
are subject to GHG
be used to assist low-income and
equivalent to the
CO2 and
$50/ton CO
reporting
rural households with energy costs
difference in (1)
2
fluorinated gas
emissions in
requirements in 40
and support job training and
costs domestic
emissions) at
2019, increasing
C.F.R. Part 98 and (2)
worker assistance programs; this
producers of
facilities that
by 2% plus
emit more than 25,000
amount increases annual y
comparable
(1) are subject
inflation each
tons of GHGs annual y
products incur due to GHG
year
to the carbon
reporting
price and (2) the
requirements
comparable costs
in 40 C.F.R.
(e.g., GHG fees)
Part 98 and (2)
imposed by the
emit more than 25,000
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
mtCO2e
the material
emissions
Exporters of
Additional fee
energy-intensive
for GHG
goods may receive
emissions
a refund related to
resulting from
the increased
venting, flaring,
costs of inputs
and leaking
(i.e., fossil fuels)
across the coal,
subject to the fee
natural gas, and petroleum supply chains (as determined by Secretary of the Treasury)
H.R. 4926
Fee on fossil fuels Fee applies to coal at
Fee continues
The bil provides an annual tax
No specific
Imports of carbon-
Separate fee
Blumenauer
based on their
mines, petroleum at
until national
credit for each individual, provides
provisions
intensive goods
for fluorinated
Feb. 5, 2018
carbon content
refineries, natural gas
GHG emissions
an equivalent benefit to individuals
subject to a fee—
GHGs
and certain
at processors,
are 80% below
not eligible for the tax credit,
determined by the
Separate fee
facilities for GHG imported fossil fuels,
2005 levels
provides up to $10 bil ion in annual
Secretary of the
for GHGs
emissions
and facilities that (1)
cost-mitigation grants to states to
Treasury—that is
(other than
Fee set at
are subject to GHG
be used to assist low-income and
equivalent to the
CO2 and
$50/ton CO
reporting
rural households with energy costs
difference in (1)
2
fluorinated gas
emissions in
requirements in 40
and support job training and
costs domestic
emissions) at
2019, increasing
C.F.R. Part 98 and (2)
worker assistance programs; this
producers of
facilities that
by 2% plus
emit more than 25,000
amount increases annual y
comparable
(1) are subject
inflation each
tons of GHGs annual y
products incur due to GHG
year
to the carbon
reporting
price and (2) the
requirements
comparable costs
in 40 C.F.R.
(e.g., GHG fees)
Part 98 and (2)
imposed by the
emit more than
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
25,000
the material
mtCO2e
Exporters of
Additional fee
energy-intensive
for GHG
goods may receive
emissions
a refund related to
resulting from
the increased
venting, flaring,
costs of inputs
and leaking
(i.e., fossil fuels)
across the coal,
subject to the fee
natural gas, and petroleum supply chains (as determined by Secretary of the Treasury)
H.R. 6463
Tax on fossil
Tax applies to coal at
No specific
Establishes a trust fund that
No specific
Imports of carbon-
Establishes a
Curbelo
fuels based on
mines, petroleum at
provision
receives appropriations equal to
provisions
intensive goods
conditional
July 23, 2018
their carbon
refineries, natural gas
Authorizes the
75% of tax revenue deposited in
subject to a
moratorium on
content and on
at processors,
Secretary of the
the Treasury; from this amount,
border tax—
Clean Air Act
emissions from
imported fossil fuels,
Treasury to
the trust fund provides annual
determined by the
GHG
specific facilities
facilities in specified
increase the tax
funding for the fol owing objectives
Secretary of the
regulations for
and sources
industrial sectors that
rate if annual,
(“as provided in appropriations
Treasury—that is
stationary
Tax starts at
emit more than 25,000
cumulative
acts”) between FY2021 and
equivalent to the
emissions
$24/metric ton of metric tons of CO2e
emission
FY2030:
costs in
sources (with
CO2e, increasing
annual y, facilities that
reduction
70% to the Federal Highway Trust
comparable
some
by 2% plus
manufacture or import
targets are not
Fund;
domestic
exceptions)
inflation each
specified products, and
met (e.g., 5,177
manufactured
10% to the states as grants to low-
Creates a
year
facilities that combust
mil ion metric
goods (associated
National
biomass with emissions
income households;
tons CO2e in
with the carbon
Climate
above 25,000 metric
2020)
5.0% for frequent and chronic
tax)
Commission to
tons of CO2e
coastal flooding mitigation and
Exporters of
set five-year
adaptation infrastructure projects;
energy-intensive
emission
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;
goods may receive
reduction goals
2.7% for various energy-related
a tax refund
between 2025
research and development
related to the
and 2050 and
objectives (e.g., carbon capture and
increased costs of
assess the
storage);
inputs (i.e., fossil
effectiveness of
fuels) subject to
federal policies
3.0% to support agricultural GHG
the tax
in meeting
sequestration projects;
these goals
2.5% for the Airport and Airway Trust Fund; 2.0% for the Abandoned Mine Reclamation Fund; 1.5% for the Department of Energy weatherization program; 0.1% for the Leaking Underground Storage Tank trust fund; 0.1% for the Reforestation Trust Fund; 0.1% to decrease the environmental impact of renewable energy activities pursuant to Section 931 of the Energy Policy Act of 2005
H.R. 6928
Tax on fossil
Tax imposed on
Tax ceases if
Establishes a trust fund that
No specific
Imports of goods
No specific
McNerney
fuels based on
producers, miners, or
emission targets
receives appropriations equal to
provisions
containing or
provisions
Sept. 27, 2018
their carbon
importers of fossil
are met; targets
carbon tax revenues received in
produced using
content “of the
fuels
based on life-
the Treasury
fossil fuels subject
life cycle
cycle emission
Subject to the appropriations
to a carbon
emissions”
reductions (as
process, tax revenue used to offset
equivalency fee—
Tax starts in
determined by
a corresponding reduction in
determined by the
2020 at $25 per
EPA) from fossil
individual income tax rates starting
Secretary of the
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 ton of
fuels below
in 2019; remaining revenues would
Treasury—that is
CO2 emissions;
2005 levels:
be al ocated as fol ows:
equal to the cost
tax rate increases
80% used to provide quarterly
that U.S.
annual y by
2025: 30%
dividends to every person with a
producers of a
$10/ton; if
2030: 40%
Social Security number
comparable good
emission targets
2035: 50%
incur as a result of
are met, tax
20% used to support a range of
2040: 70%
the U.S. carbon
ceases to apply
objectives, including:
2050: 80%
tax; this fee
for four years;
-worker transition assistance
expires if the
tax reapplies if
-rural energy assistance
exporting nation
subsequent
-technology-neutral research and
implements
targets not met
development
equivalent
-electric grid innovation
measures or if an
-infrastructure resilience
international
-energy efficiency and conservation
agreement requires equivalent measures Exporters of fossil fuels or materials that used fossil fuels during production or manufacture may receive a tax refund related to the increased costs of inputs (i.e., fossil fuels) subject to the carbon tax
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
Fee on fossil fuels Covered entities
Emission
Establishes a trust fund that
No specific
Imports of carbon-
Separate fee
Deutch
based on their
include petroleum
reduction
receives appropriations equal to
provisions
intensive products
for fluorinated
Nov. 27, 2018
GHG content
refineries and
targets apply to
emission fee revenues received in
subject to a fee—
GHGs set at
Fee set at
importers, coal mines
fossil fuel
the Treasury; monies in the trust
determined by the
10% of fee for
$15/mtCO2e
and importers, natural
combustion
fund are available (after
Secretary of the
fossil fuel
emissions in
gas deliverers, and
emissions;
administrative expenses) to
Treasury—that is
emissions
2019, increasing
some natural gas
starting in 2022,
provide monthly payments to
equivalent to the
Suspends
by $10 each year
processors
annual
eligible individuals (i.e., persons
excess of (1) GHG
enforcement of
reductions of
with a Social Security number or
emissions from
If emission
certain Clean
5% of 2015
taxpayer identification number);
production
reduction targets
Air Act GHG
levels (253
adults get one share and children
multiplied by the
are not met, fee
regulations; if
mil ion
receive a half-share
relevant U.S.
increases by $15;
EPA
mtCO
emissions fee over
if targets met, fee
2e)
determines (in
between 2022
(2) the total
does not increase
2030 and every
and 2029; less
foreign product
five years
Provides a rebate
stringent
cost of carbon;
thereafter)
for fuels used on
reductions in
Exporters of
emission
a farm
subsequent
carbon-intensive
targets are not
years
products (and
met, the
covered fuels) may
enforcement
receive a refund
suspension
under an
would cease
analogous formula
and EPA must promulgate regulations to reduce emissions from covered fuels
S. 3791
Fee on fossil fuels Covered entities
Emission
Establishes a trust fund that
No specific
Imports of carbon-
Separate fee
Coons
based on their
include petroleum
reduction
receives appropriations equal to
provisions
intensive products
for fluorinated
Dec. 19, 2018
GHG content
refineries and
targets apply to
emission fee revenues received in
subject to a fee—
GHGs set at
importers, coal mines
fossil fuel
the Treasury; monies in the trust
determined by the
10% of fee for
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
and importers, natural
combustion
fund are available (after
Secretary of the
fossil fuel
$15/mtCO2e
gas deliverers, and
emissions;
administrative expenses) to
Treasury—that is
emissions
emissions in
some natural gas
starting in 2022,
provide monthly payments to
equivalent to the
Directs EPA to
2019, increasing
processors
annual
eligible individuals (i.e., persons
excess of(1) GHG
evaluate
by $10 each year
reductions of
with a Social Security number or
emissions from
effectiveness of
If emission
5% of 2015
taxpayer identification number);
production
fee program in
reduction targets
levels (253
adults get one share and children
multiplied by the
meeting
are not met, fee
mil ion
receive a half-share
relevant U.S.
emission
increases by $15;
mtCO2e)
emissions fee over
reduction
if targets met, fee
between 2022
(2) the total
targets; if
does not increase
and 2029; this
foreign product
targets are
equates to a
cost;
Provides a rebate
met, EPA may
50% reduction
for fuels used on
Exporters of
review existing
in 2030
a farm
carbon-intensive
regulations on
compared to
products (and
fossil fuel
2005 levels; less
covered fuels) may
combustion
stringent
receive a refund
and fluorinated
reductions in
under an
GHG
subsequent
analogous formula
emissions
years
Source: Prepared by CRS.
CRS-57
Table 9. GHG Emission Reduction Proposals: 116th Congress
Ordered Chronological y 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
Fee on fossil
Covered entities
Emission reduction
Establishes a trust fund that
No specific
Imports of carbon-
Separate fee for
Deutch
fuels based on
include petroleum
targets apply to fossil
receives appropriations equal
provisions
intensive products
fluorinated GHGs set
Jan. 24, 2019
their GHG
refineries and
fuel combustion
to emission fee revenues
subject to a fee—
at 10% of fee for
content
importers, coal
emissions; starting in
received in the Treasury;
determined by the
fossil fuel emissions
Fee set at
mines and
2025, annual
monies in the trust fund are
Secretary of the
Suspends
$15/mtCO
importers, natural
reductions of 5% of
available (after administrative
Treasury—that is
2e
enforcement of
emissions in
gas deliverers, and
2016 levels (248
expenses) to provide monthly
equivalent to the
certain Clean Air Act
2019, increasing
some natural gas
mil ion mtCO2e)
payments to eligible individuals
excess of (1) GHG
GHG regulations; if
by $10 each year
processors
between 2025 and
(i.e., persons with a Social
emissions from
EPA determines (in
plus inflation
2034; annual
Security number or taxpayer
production
2030 and every five
reductions of 2.5% of
identification number); adults
multiplied by the
If emission
years thereafter)
2016 levels between
get one share and children
relevant U.S.
reduction targets
emission targets are
2035 and 2050
receive a half-share
emissions fee over
are not met, fee
not met, the
(2) the total foreign
increases by $15
Fee ceases if emissions
enforcement
product cost of
plus inflation; if
from covered fuels
suspension would
carbon
targets met, fee
decrease to 10% of
cease and EPA must
does not
2016 levels (497
Exporters of
promulgate
increase
mil ion mtCO2e) and
carbon-intensive
regulations to reduce
monthly dividend
products (and
emissions from
Provides a
check reach certain
covered fuels) may
covered fuels
rebate for fuels
levels
receive a refund
used on a farm
under an analogous
and for fuels or
formula
their derivatives used by U.S. Armed Forces
S. 940
Cap-and-trade
Covered materials
2020 limit: permits
Auction revenue distributed
No specific
Unless an
EPA directed to
Van Hol en
system for CO2
include crude oil,
sold equal to 12.5%
via quarterly dividend
provisions
exporting nation
promulgate
Mar. 28, 2019
emissions from
coal, natural gas,
below 2005 U.S. CO2
payments to al persons with a
has implemented
regulations to
and products
emissions
valid Social Security number
equivalent
address other GHG
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 fuel
derived from these
2025 limit: permits
measures, imports
emissions that are
identical to H.R.
combustion
materials used for
sold equal to 30%
of carbon-intensive
not covered by the
1960 (Beyer)
Permits sold
combustion
below 2005 U.S. CO2
goods wil be
permit program;
through
Covered entities
emissions
subject to a fee—
emissions “directly
quarterly
include petroleum
2030 limit: permits
determined by the
attributable to the
auctions by the
refineries and
sold equal to 50%
Secretary of the
production of animals
Department of
importers, coal
below 2005 U.S. CO
Treasury—that is
for food or food
2
the Treasury
mines and
emissions
equivalent to the
products” are
costs domestic
excluded
Auction revenue
importers, and
2040 limit: permits
producers of
distributed to
natural gas
sold equal to 80%
comparable
individuals, often
deliverers (as
below 2005 U.S. CO2
products incur due
described as a
reported on Energy
emissions
to the carbon price
“cap and
Information
dividend”
Administration
Exporters of
approach
Form 176) and
carbon-intensive
some natural gas
goods may receive
A permit reserve
processors
compensation for
and borrowed
losses related to
permits from
the permit system
future years may be used to help stabilize auction prices
H.R. 1960
Cap-and-trade
Covered materials
2020 limit: permits
Auction revenue distributed
No specific
Unless an
EPA directed to
Beyer
system for CO2
include crude oil,
sold equal to 12.5%
via quarterly dividend
provisions
exporting nation
promulgate
Mar. 28, 2019
emissions from
coal, natural gas,
below 2005 U.S. CO2
payments to al persons with a
has implemented
regulations to
This proposal is
fossil fuel
and products
emissions
valid Social Security number
equivalent
address other GHG
identical to S. 940
combustion
derived from these
2025 limit: permits
measures, imports
emissions that are
(Van Hol en)
Permits sold
materials used for
sold equal to 30%
of carbon-intensive
not covered by the
through
combustion
below 2005 U.S. CO
goods wil be
permit program;
2
quarterly
Covered entities
emissions
subject to a fee—
emissions “directly
auctions by the
include petroleum
determined by the
attributable to the
2030 limit: permits
refineries and
Secretary of the
production of animals
sold equal to 50%
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
importers, coal
below 2005 U.S. CO2
Treasury—that is
for food or food
the Treasury
mines and
emissions
equivalent to the
products” are
Auction revenue
importers, and
2040 limit: permits
costs domestic
excluded
distributed to
natural gas
sold equal to 80%
producers of
individuals, often
deliverers (as
below 2005 U.S. CO2
comparable
described as a
reported on Energy
emissions
products incur due
“cap and
Information
to the carbon price
dividend”
Administration
Exporters of
approach
Form 176) and
carbon-intensive
some natural gas
A permit reserve
goods may receive
processors
and borrowed
compensation for
permits from
losses related to
future years may
the permit system
be used to help stabilize auction prices
S. 1128
Fee on fossil
Fee applies to coal
Fee continues until
The bil provides an annual tax
No specific
Imports of carbon-
Separate fee for
Whitehouse
fuels based on
at mines, petroleum
national GHG
credit for each individual;
provisions
intensive goods
fluorinated GHGs
Apr. 10, 2019
their carbon
at refineries, natural
emissions are 80%
provides an equivalent benefit
subject to a fee—
Separate fee for
content and
gas at processors,
below 2005 levels
to individuals not eligible for
determined by the
GHGs (other than
certain facilities
imported fossil fuels,
the tax credit
Secretary of the
CO2 and fluorinated
for GHG
and facilities that (1)
Provides up to $10 bil ion in
Treasury—that is
gas emissions) at
emissions
are subject to GHG
annual grants to states to be
equivalent to the
facilities that (1) are
Fee set at
reporting
used to
difference in (1)
subject to GHG
$52/ton CO
requirements in 40
costs domestic
2
(1) assist low-income and rural
reporting
emissions in
C.F.R. Part 98 and
producers of
households with energy costs,
requirements in 40
2020, increasing
(2) emit more than
comparable
C.F.R. Part 98 and (2)
by 6% plus
25,000 tons of
(2) support job training and
products incur due
emit more than
inflation each
GHGs annual y
worker assistance programs,
to the carbon price
25,000 mtCO2e
year
Fee also applies to
and
and (2) the
emissions
certain industrial
(3) assist the state in climate
comparable costs
Additional fee for
sources, regardless
change adaptation or transition
(e.g., GHG fees) imposed by the
GHG emissions
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
to a low-carbon economy; this
nation exporting
(described as
output, including
amount increases annual y
the material
“associated
aluminum
Exporters of
emissions”) resulting
production, HCFC-
energy-intensive
from venting, flaring,
22 production and
goods may receive
and leaking across
HFC-23 destruction,
a refund related to
the coal, natural gas,
and fluorinated gas
the increased costs
and petroleum supply
production; this fee
of inputs (i.e., fossil
chains (as determined
starts as a
fuels) subject to
by Secretary of the
percentage of the
the fee
Treasury)
fossil fuel fee and increases annual y
S. 2284
Fee on fossil
Covered entities
Emission reduction
Establishes a trust fund that
Directs the
Imports of carbon-
Separate fee for
Coons
fuels based on
include petroleum
targets apply to
receives appropriations equal
Department of
intensive products
fluorinated GHGs set
July 25, 2019
their GHG
refineries and
emissions from
to emission fee revenues
Agriculture (in
subject to a fee—
at 20% of fee for
This proposal is
content
importers, coal
covered fuels; starting
col ected in the Treasury;
consultation with
determined by the
fossil fuel emissions
identical to H.R.
Fee on solid
mines and
in 2020, target equals
monies in the trust fund (after
EPA) to provide
Secretary of the
4051 (Panetta)
biomass based
importers, natural
90% of 2017 levels,
administrative expenses) are
payments for
Treasury—that is
on GHG content gas wel s and
reaching 59% of 2017
al ocated as fol ows:
farmers and
equivalent to the
as determined by importers, solid
levels in 2025 and 45%
70% to provide monthly
landowners for
excess of (1) GHG
EPA, using a life-
biomass combustion
of 2017 levels in 2030; payments to eligible individuals eligible
emissions from
cycle analysis
facilities
in subsequent years,
(i.e., persons with a Social
sequestration
production
the targets are
activities; directs
multiplied by the
Fee set at
Security number or taxpayer
reduced by 2.25% of
Department of
relevant U.S.
$15/mtCO
identification number); adults
2e
2017 emission levels
Energy to provide
emissions fee over
emissions in
get one share and children
each year
payments for
(2) the total foreign
2020, increasing
receive a half-share; payments
direct air capture
product cost
by $15 each year
Fee ceases if emissions
are phased-out at certain
from covered fuels
income levels
of CO2 emissions;
Exporters of
If emission
equal 10% of 2017
the funding
carbon-intensive
reduction targets
20% to support existing and
emission levels
source for these
products (and
are not met, fee
new infrastructure funding
payments is not
covered fuels) may
increases by $30;
programs and other objectives
specified
receive a refund
if annual targets
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
5% to the Department of
under an analogous
not increase
Energy to support
formula
Fee col ected
development of GHG
quarterly
mitigation technology and related technologies 5% to support transition assistance through new and existing programs
H.R. 4051
Fee on fossil
Covered entities
Emission reduction
Establishes a trust fund that
Directs the
Imports of carbon-
Separate fee for
Panetta
fuels based on
include petroleum
targets apply to
receives appropriations equal
Department of
intensive products
fluorinated GHGs set
July 25, 2019
their GHG
refineries and
emissions from
to emission fee revenues
Agriculture (in
subject to a fee—
at 20% of fee for
This proposal is
content
importers, coal
covered fuels; starting
col ected in the Treasury;
consultation with
determined by the
fossil fuel emissions
identical to S.
Fee on solid
mines and
in 2020, target equals
monies in the trust fund (after
EPA) to provide
Secretary of the
2284 (Coons)
biomass based
importers, natural
90% of 2017 levels,
administrative expenses) are
payments for
Treasury—that is
on GHG content gas wel s and
reaching 59% of 2017
al ocated as fol ows:
farmers and
equivalent to the
as determined by importers, solid
levels in 2025 and 45%
70% to provide monthly
landowners for
excess of (1) GHG
EPA using a life-
biomass combustion
of 2017 levels in 2030; payments to eligible individuals eligible
emissions from
cycle analysis
facilities
in subsequent years,
(i.e., persons with a Social
sequestration
production
the targets are
activities; directs
multiplied by the
Fee set at
Security number or taxpayer
reduced by 2.25% of
Department of
relevant U.S.
$15/mtCO
identification number); adults
2e
2017 emission levels
Energy to provide
emissions fee over
emissions in
get one share and children
each year
payments for
(2) the total foreign
2020, increasing
receive a half-share; payments
direct air capture
product cost
by $15 each year
Fee ceases if emissions
are phased-out at certain
from covered fuels
income levels
of CO2 emissions;
Exporters of
If emission
equal 10% of 2017
the funding
carbon-intensive
reduction targets
20% to support existing and
emission levels
source for these
products (and
are not met, fee
new infrastructure funding
payments is not
covered fuels) may
increases by $30;
programs and other objectives
specified
receive a refund
if annual targets
5% to the Department of
under an analogous
met, fee does
Energy to support
formula
not increase
development of GHG mitigation technology and related technologies
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
5% to support transition
quarterly
assistance through new and existing programs
H.R. 3966
Tax on fossil
Tax imposed on
GHG emissions target
Net revenues from the tax on
No specific
Tax applies to
Separate tax for
Lipinski
fuels based on
manufacturers,
of 80% below 2005
fossil fuels, imported products,
provisions
specific imported
fluorinated GHGs
July 25, 2019
their potential
producers, and
levels
and fluorinated GHGs support
products based on
(based on metric
CO2 emissions;
importers of fossil
the fol owing objectives:
the lesser of the
tons of CO2e) set at
tax rate set in
fuels at first point of
10% used to increase monthly
fossil fuels used
10% of the tax rate
2020 at
sale
payments to Social Security
during production
for fossil fuel
$40/short ton of
beneficiaries
or the CO2
emissions
CO2, increasing
emissions
Suspends
annual y by 2.5%
5% al ocated to the Low-
attributable to
enforcement of
plus inflation; if
Income Home Energy
their production;
certain Clean Air Act
GHG emissions
Assistance program
eligible products
GHG regulations; if
target is met, the
1% al ocated to the
based on a list of
EPA determines (in
rate increases
Department of Energy’s
domestic industries
2030 and every five
only by inflation
weatherization assistance
(prepared by EPA)
years thereafter) that
program
that, “in the
emission targets are
After these al ocations,
aggregate, account
not met, the
remaining revenues used to
for 95% of the
enforcement
reduce the payrol tax rates
taxable carbon
suspension would
that apply to employees and
substances used in
cease and EPA must
the self-employed
the United States”
promulgate
Exporters may
regulations to reduce
receive a refund
emissions from
for fossil fuels and
covered fuels
any other product with increased costs attributable to the new tax
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
Tax on fossil
Tax imposed on
Emission reduction
Tax revenue supports the
No specific
Imports of carbon-
Establishes a
Rooney
fuels based on
coal at coal mines
schedule for covered
fol owing objectives:
provisions
intensive goods
conditional
July 25, 2019
their potential
and importers,
emissions starts in
52.5% to offset a reduction in
subject to a border
moratorium on
GHG emissions,
petroleum products
2021 at 5,000
payrol tax rates that apply to
tax—determined
Clean Air Act GHG
GHG emissions
at refineries and
mmtCO2e; the annual
employees, employers, and
by the Secretary of
regulations for
from specific
importers, and
emission schedule is
self-employed persons
the Treasury—that
stationary emissions
industrial
natural gas at
cumulative, reaching
is equivalent to the
sources (with some
sources, and
processors or at
49,000 mmtCO
7.5% to provide a payment to
2e in
costs in
exceptions)
GHG emissions
point of sale for
2031; assuming annual
Social Security beneficiaries
comparable
Creates a credit
from specific
combustion
emission levels
7.5% to provide block grants
domestic
system, which phases
products
Tax imposed on
fol owed this
to states to offset higher
manufactured
out after five years,
Tax rate set in
facilities—in specific
decreasing schedule,
energy costs for low-income
goods (associated
for persons making
2021 at
industrial source
covered emissions
households
with the carbon
payments under
$30/mtCO
would decrease to
tax)
2e,
categories—that
7.5% to support climate
existing state GHG
increasing
emit more than
4,200 mmtCO2e in
adaptation, carbon
Exporters of
reduction programs
annual y by 5%
25,000 mtCO
2031
2e per
sequestration, energy
energy-intensive
plus inflation; if
year
efficiency, and research and
goods may receive
covered
Tax imposed on
development programs
a tax refund
emissions do not facilities that
related to the
meet emission
manufacture or
increased costs of
reduction
import specified
inputs (i.e., fossil
schedule, the tax products or
fuels) subject to
rate increases by
combust biomass
the tax
an additional $3
with emissions above 25,000 mtCO2e
H.R. 4142
Tax on fossil
Tax applies to
No specific provisions
Establishes a trust fund that
No specific
The Secretary of
No specific
Larson
fuels based on
manufacturers,
would receive appropriations
provisions
the Treasury shal
provisions
Aug. 2, 2019
their carbon
producers, or
equal to tax revenue received
impose a fee on
content
importers of coal,
in the Treasury; the trust fund
imports of carbon-
Tax set at
petroleum, and
would provide annual funding
intensive goods;
$52/mtCO
natural gas
the fee wil be
2 in
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
for the fol owing infrastructure
equivalent to the
by 6% plus
programs:
cost that domestic
inflation each
$61 bil ion (plus the Highway
producers incur
year
Trust Fund shortfal ) for
due to the carbon
highway (80%) and mass transit
tax; this fee expires
(20%);
if the exporting nation implements
$6.4 bil ion for the
equivalent
Transportation Investments
measures or if an
Generating Economic
international
Recovery program;
agreement requires
$4 bil ion for aviation;
equivalent
$6.6 bil ion for passenger rail;
measures
$8 bil ion for harbors, waterways, flood protection, and dams; $8.4 bil ion for wastewater and drinking water; $4 bil ion for broadband; $3 bil ion for education infrastructure; $1.5 bil ion for health care research and infrastructure; $2 bil ion for the Public Housing Capital Fund; $4.4 bil ion for Department of Energy research and development programs; and $1.5 bil ion for Department of Agriculture climate-related research
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 provides: $7 bil ion annual y for worker and community transition assistance, and 12.5% for an energy refund program that would provide monthly payments to households with incomes up to 150% of poverty line Any remaining revenues support a consumer tax rebate for households with incomes up to 350% of the poverty line
H.R. 4520
Tax on fossil
Tax imposed on
Emission reduction
Establishes a trust fund that
No specific
Imports of carbon-
Establishes a
Fitzpatrick
fuels based on
coal at coal mines
schedule for covered
would receive appropriations
provisions
intensive goods
conditional
Sept. 26, 2019
their potential
and importers,
emissions starts in
equal to 75% of the tax
subject to a border
moratorium on
GHG emissions,
petroleum products
2021 at 4,900
revenue received in the
tax—determined
Clean Air Act GHG
GHG emissions
at refineries and
mmtCO2e; the annual
Treasury; the trust fund would
by the Secretary of
regulations for
from specific
importers, and
emission schedule is
provide annual funding for the
the Treasury—that
stationary emissions
industrial
natural gas at
cumulative, reaching
fol owing infrastructure
is equivalent to the
sources (with some
sources, and
processors or at
48,800 mmtCO2e in
programs (“as provided in
costs in
exceptions)
GHG emissions
point of sale for
2031; assuming annual
appropriations acts”) between
comparable
Creates a credit
from specific
combustion
emission levels
FY2021 and FY2030:
domestic
system, which phases
products
Tax imposed on
fol owed this
70% to the Federal Highway
manufactured
out after five years,
Tax rate set in
facilities—in specific
decreasing schedule,
Trust Fund;
goods (associated
for persons making
2021 at
industrial source
covered emissions
with the carbon
10% to the states as grants to
payments under
$35/mtCO
would decrease to
tax)
2e,
categories—that
al ocate to low-income
existing state GHG
increasing
emit more than
4,000 mmtCO2e in
households;
Exporters of
reduction programs
annual y by 5%
25,000 mtCO
2031
2e per
energy-intensive
Creates a National
plus inflation; if
year
4.2% for various energy-
goods may receive
Climate Commission
covered
related research and
a tax refund
to set five-year
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 do not Tax imposed on
development objectives,
related to the
emission reduction
meet emission
facilities that
including carbon capture and
increased costs of
goals between 2025
reduction
manufacture or
storage and battery
inputs (i.e., fossil
and 2050 and assess
schedule, the tax import specified
technology;
fuels) subject to
the effectiveness of
rate increases by
products or
4.0% for frequent and chronic
the tax
federal policies in
an additional $4
combust biomass
coastal flooding mitigation and
meeting these goals
with emissions
adaptation infrastructure
above 25,000
projects;
mtCO2e
3.0% for displaced energy workers; 2.5% for the Airport and Airway Trust Fund; 1.5% for the Department of Energy weatherization program; 1.5% for the Abandoned Mine Reclamation Fund; 1.0% for the Reforestation Trust Fund; 0.5% to support agricultural GHG sequestration projects; 0.1% to decrease the environmental impact of renewable energy activities pursuant to Section 931 of the Energy Policy Act of 2005; 0.1% for the Leaking Underground Storage Tank trust fund
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
Tax on fossil
Tax imposed at coal
No specific provision
Provides a $1,000 income tax
No specific
No specific
No specific
Maloney
fuels based on
mines and oil and
credit for individuals and each
provisions
provisions
provisions
Dec. 17, 2019
their carbon
gas wel s and on
of their dependents; tax credit
content
fuels “entered into
phases out at adjusted gross
Tax rate starts in the United States”
income levels exceeding
2020 at $40 per
$314,000; tax credit and
ton of carbon,
income phase-out level
which equates to
increases each year by a cost
approximately
of living adjustment
$11/tCO2 emissions; tax rate increases annual y by a cost of living adjustment as defined in the bil
S. 4484
Fee on fossil
Fee imposed on coal Fee ceases if emission
Establishes a trust fund that
No specific
Imports of carbon-
Directs EPA to enter
Durbin
fuels and other
at coal mines and
targets are met;
receives appropriations equal
provisions
intensive goods are
agreement with the
Aug. 6, 2020
selected GHG
importers, crude oil
targets based on
to emission fees received in
subject to a fee
National Academy of
emission sources
at refineries and
percentage reductions
the Treasury; after subtracting
(determined by the
Sciences to study
Fee on fossil
importers, and
compared to emission
fee rebates and, in the first 18
Secretary of the
effects of fee
fuels starts in
natural gas at
levels from covered
years, approximately $5.5
Treasury) that is
program
2022 at
producing wel s and
fuels and sources in
bil ion per year, the remaining
equivalent to the
$25/mtCO
importers; and
2018:
funds are al ocated
difference in (1)
2e,
increasing
select sources that
approximately as fol ows
costs domestic
annual y by $10
emit 25,000
2030: 47% below 2018 during the first 10 years:
producers of
plus inflation; if
mtCO2e or more of
comparable
2035: 60% below 2018 70% for direct payments to
emission targets
CO2 or methane
eligible individuals, phasing out
products incur due
are not met, the
per year
2040: 70% below 2018 at certain income levels;
to the fee and (2)
fee increases are
2045: 80% below 2018
the comparable
5% to support agricultural and
greater
2050: 90% below 2018
costs imposed by
forestry sequestration activities;
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
10% for grants to eligible
the exporting
sources starts in
entities to support transition
nation
2024
assistance to a lower carbon
Exporters of fossil
Fee is delayed in
economy;
fuels and carbon
2022 and 2023 if
15% for a newly established
intensive products
unemployment
Climate Change Finance
may receive a
rate is 5% or
Corporation to finance “clean
rebate based on
higher
energy” and climate change
the emissions fee
A rebate is
resiliency activities, including
and manufacturing
provided for
research and development and
costs attributable
carbon capture,
commercialization of
to the emissions
sequestration,
technologies
fee
and utilization activities
H.R. 8175
Tax on fossil
Tax imposed on
Tax ceases if emission
Establishes a trust fund that
No specific
Imports of goods
No specific
McNerney
fuels based on
producers, miners,
targets are met;
receives appropriations equal
provisions
containing or
provisions
Sept. 4, 2020
the carbon
or importers of
targets based on life-
to carbon tax revenues
produced using
content “of the
fossil fuels
cycle emission
received in the Treasury
fossil fuels subject
life cycle
percentage reductions
Tax revenue used to offset a
to a carbon
emissions”
(as determined by
corresponding reduction in
equivalency fee
Tax starts in
EPA) from fossil fuels
individual income tax rates
(determined by the
2021 at $25 per
below 2005 levels:
starting in 2021; remaining
Secretary of the
metric ton of
revenues would be al ocated as
Treasury) that is
CO
equal to the cost
2 emissions;
2025: 30%
fol ows:
tax rate
2030: 40%
that U.S. producers
80% used to provide quarterly
increases
2035: 50% below
of a comparable
dividends to every person with
annual y by
2040: 70%
good incur as a
a Social Security number
$10/ton; if
2050: 80%
result of the U.S.
emission targets
20% used to support a range
carbon tax; this fee
are met, tax
of objectives, including:
expires if the
ceases to apply
-worker transition assistance
exporting nation
for four years;
-rural energy assistance
implements
-technology-neutral research
equivalent
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 if
and development
measures or if an
subsequent
-electric grid innovation
international
targets not met
-infrastructure resilience
agreement requires
-energy efficiency and
equivalent
conservation
measures Exporters of fossil fuels or materials that used fossil fuels during production or manufacture may receive a tax refund related to the increased costs of inputs (i.e., fossil fuels) subject to the carbon tax
Source: Prepared by CRS.
CRS-70
Market-Based Greenhouse Gas Emission Reduction Legislation
Author Information
Jonathan L. Ramseur
Specialist in Environmental Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in
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Congressional Research Service
R45472 · VERSION 16 · UPDATED
71 |
Provides additional allowances for sequestration projects |
No specific provision |
No specific provision |
|
Cap-and-trade system for CO2 emissions from electricity sector; also addresses other air pollutants (mercury, sulfur dioxide, nitrogen oxide) |
Fossil-fuel-fired electric generating facilities that have a capacity of greater than 25 megawatts and generate electricity for sale |
2001 CO2 emission levels by 2015 |
Allotted to covered sources based on previous years emission levels |
Determined by EPA |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG |
Determined by EPA |
1990 GHG levels for covered sources by 2020; 80% below 1990 levels by 2050 |
Determined by the President based on plan submitted to Congress; sell via auction and distribute to non-covered sources to achieve specified goals: maximize public benefit, mitigate energy costs to consumers, provide worker transition assistance, among others |
No specific provision |
No specific provision |
EPA to promulgate additional regulations to reduce GHG emissions, including performance standards, efficiency standards, technology requirements, among others; directs Department of Energy to promulgate renewable portfolio standards |
|
Directs EPA to issue regulations to meet GHG emissions goals; may include a market-based approach |
Determined by EPA |
1990 GHG levels by 2020; 80% below1990 levels by 2050 |
Determined by EPA; allowances to covered entities; remaining allowances to households, communities, and other groups for various objectives |
No specific provision |
No specific provision; allowances may be allotted to companies that experience disproportionate impacts from lower-carbon economy |
Directs EPA to issue CO2 emissions standards for vehicles and CO2 emissions standards for new power plants, create low-carbon electricity generation standards and trading program, promulgate electricity efficiency standards, and establish renewable energy portfolio standards |
|
Cap-and-trade system for GHG emissions |
Determined by EPA through a rulemaking process |
1990 GHG levels for covered sources by 2020 |
Determined by the President; Congress may enact alternative plan within one year |
No specific provision |
No specific provision |
No specific provision |
Source: Prepared by CRS.
Table 3. GHG Emission Reduction Proposals: 110th Congress
Ordered Chronologically by Introduced Date
|
Bill Number, Sponsor, Introduced Date, and Committee or Floor Action |
General Framework |
Covered Entities/Materials |
Emissions Limit or Target |
Distribution of Allowance Value or Tax/Fee Revenue |
Offset and International Allowance Treatment |
Mechanism to Address Carbon-Intensive Imports |
Additional GHG Reduction Measures |
|
Cap-and-trade system for GHG emissions from multiple sectors |
Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFC, PFC, and SF6 that, when used, will emit over 10,000 mtCO2e |
1990 GHG levels for covered sources by 2020, reduced by the level of emissions from non-covered sources |
Determined by EPA |
Up to 15% of submitted allowances can come from domestic or international offsets; if offsets account for 15% of allowances, at least 1.5% must come from agricultural sequestration |
No specific provision |
No specific provision |
|
Determined by EPA, but must be a market-based program for GHG emissions |
Determined by EPA through a rulemaking process |
1990 GHG levels for all sources by 2020 |
Determined by EPA |
No specific provision |
No specific provision |
GHG emission standards for vehicles, new electric power plants, and an energy efficiency performance standard |
|
Cap-and-trade system for GHG emissions from electricity sector |
Fossil-fuel-fired electric generating facilities with a capacity of greater than 25 megawatts |
5% below 2001 GHG levels for electric generators by 2020 |
Initially provided to covered entities at no cost; percentage of allowances sold via auction gradually increases: by 2036, 100% sold via auction; activities funded by auction revenues include technology development and energy efficiency |
Up to 25% of required reductions may be achieved with EPA-approved international credits |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG emissions from multiple sectors |
Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; any refiner or importer of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and any importer or producer of HFCs, PFCs, or SF6 that, when used, will emit over 10,000 mtCO2e |
1990 GHG levels for covered sources by 2020, reduced by the level of emissions from non-covered sources |
Determined by EPA |
Up to 15% of allowance submission can come from domestic and/or international offsets |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG emissions |
Determined by EPA through a rulemaking process |
1990 GHG levels for covered sources by 2020 |
Determined by the President; Congress may enact alternative plan within one year |
No specific provision |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG emissions |
Determined by EPA through a rulemaking process |
1990 GHG levels for all sources by 2020 |
Determined by the President; Congress may enact alternative plan within one year |
No specific provision |
No specific provision |
GHG emission standards for vehicles, energy efficiency standards, renewable portfolio standards |
|
Tax starting at $10/short ton of carbon content in taxable fuels, which equates to approximately $2.70/tCO2 emissions The rate increases $10 per year (in nominal dollars) |
Manufacturers, producers, or importers who sell a taxable fuel, which includes coal, petroleum and petroleum products, and natural gas |
Tax rate freeze if CO2 emissions do not exceed 20% of U.S. 1990 CO2 emissions by 2020 |
No specific provision |
NA |
No specific provision |
No specific provision |
|
Cap-and-trade system for GHG emissions from multiple sectors with allowance price ceiling: in 2012, $12/ton, increasing by 5% annually plus inflation |
Petroleum refineries, natural gas processing plants, and imports of petroleum products, coke, or natural gas; entities that consume more than 5,000 tons of coal a year; importers of HFCs, PFC, SF6, N2O, or products containing such compounds, and adipic acid and nitric acid plants, aluminum smelters, and facilities that emit HFCs as a byproduct of HCFC production |
1990 GHG levels for covered sources by 2020 |
In 2012, 53% of allowances allocated to covered and certain industrial entities 23% allocated to states and for sequestration and early reduction activities 24% are auctioned to fund low-income assistance, carbon capture and storage, and adaptation activities The percentage auctioned increases steadily, reaching 53% by 2030 |
Unlimited use of domestic offsets; international offsets limited to 10% of a regulated entity's emissions target |
International reserve allowances must accompany imports of any covered GHG intensive goods and primary products to the United States Least developed nations or those that contribute no more than 0.5% of global emissions are excluded |
No specific provision |
|
Tax on CO2 content on fossil fuels, starting at $15/short ton CO2 emissions, increasing by 10% annually plus inflation |
Manufacturers, producers, or importers of coal, petroleum, and natural gas |
No specific provision |
In first year (2008), approximately 76% would support a payroll tax rebate 16% would fund clean energy technology 8% would support affected industry transition assistance (declining to zero by 2017) |
Allows for domestic offset projects (as prescribed by the Secretary of the Treasury) to be submitted as tax credits or tax refunds |
No specific provision other than direct assistance to affected industries (determined by the Secretaries of the Treasury and Labor) |
No specific provision |
|
Cap-and-trade system for GHG emissions from multiple sectors A Carbon Market Efficiency Board may implement cost-relief measures |
Electric power, industrial, or commercial entities that emit over 10,000 mtCO2e annually; refiners or importers of petroleum products for transportation use that, when combusted, will emit over 10,000 mtCO2e annually; and importers or producers of HFCs, PFCs, or SF6 that, when used, will emit over 10,000 mtCO2e |
85% of 2006 GHG levels from covered sources, reduced by the level of emissions from non-covered sources by 2020 |
Determined by EPA |
Up to 15% of allowance submission can come from domestic and/or international offsets |
The President may establish a program to require importers to pay the value of GHGs emitted during the production of goods or services imported into the United States from countries that have no comparable emission restrictions to those of the United States |
No specific provision |
Ordered reported by the Senate Committee on Environment and Public Works on Dec. 5, 2007 |
Cap-and-trade system for GHG emissions from multiple sectors |
Producers or importers of petroleum or coal-based liquid or gaseous fuel that emits GHGs, or facilities that produce or import more than 10,000 mtCO2e of GHG chemicals annually; facilities that use more than 5,000 tons of coal annually; natural gas processing plants or importers (including liquid natural gas [LNG]); or facilities that emit more than 10,000 mtCO2e of HFCs annually as a byproduct of HFC production |
Emission cap for covered sources in 2020 is 4.924 billion tCO2e (19% below 2005 levels for covered sources) |
In 2012: 40% of allowances allocated to covered electric utilities, industrial facilities, and coops 9% allocated to states for conservation, extra reductions, and other activities 11.5% for various sequestration activities 10% allocated for electricity consumer assistance 5% for early reductions 0.5% for tribal governments 18% (plus an early auction of 6%) auctioned to fund technology deployment, carbon capture and storage, low-income and rural assistance, and adaptation activities |
Up to 15% of allowance requirement may be achieved through domestic offsets; international offsets can satisfy an additional 15% |
International reserve allowances must accompany imports of any covered GHG-intensive goods and primary products to the United States Least developed nations or those that contribute no more than 0.5% of global emissions are excluded |
Low carbon fuel standard for transportation fuels |
S.Amdt. 4825 (in the nature of substitute) failed a cloture motion on June 6, 2008 |
Cap-and-trade system for GHG emissions from multiple sectors A Carbon Market Efficiency Board may implement cost-relief measures if necessary |
Producers or importers of petroleum- or coal-based liquid or gaseous fuel that emits GHGs, or facilities that produce or import more than 10,000 mtCO2e of GHG chemicals annually; facilities that use more than 5,000 tons of coal annually; natural gas processing plants or importers (including LNG); or facilities that emit more than 10,000 mtCO2e of HFCs annually as a byproduct of HFC production |
Emission cap for covered sources in 2020 is 4.924 billion tCO2e (19% below 2005 levels for covered sources) |
A share of allowances are auctioned for deficit reduction increasing from 6.1% in 2012 to 15.99% in 2031 and thereafter The "remainder allowances" are distributed in 2012 (adjusted in future years) as follows: 38% of allowances to covered electric utilities, industrial facilities, and co-ops 10.5% to states for conservation, extra reductions, and other activities 7.5% for various sequestration activities 11% allocated for electricity and natural gas consumer assistance 5% for early reductions 0.5% for tribal governments 1% for methane reduction projects 21.5% (plus an early auction of 5%) auctioned to fund technology deployment, carbon capture and storage, low income and rural assistance, and adaptation activities, as well as program management |
Up to 15% of allowance requirement may be achieved through domestic offsets; international allowances can satisfy an additional 15% |
International reserve allowances must accompany imports of any covered GHG-intensive goods and primary products to the United States Least developed nations or those that contribute no more than 0.5% of global emissions are excluded |
Low carbon fuel standard for transportation fuels |
|
Cap-and-trade system for GHG emissions from multiple sectors |
Electric power or industrial facilities that emit over 10,000 mtCO2e; producers or importers of petroleum or coal-based liquid products that, when combusted, will emit over 10,000 mtCO2e annually; local distribution companies that deliver natural gas that, when combusted, will emit over 10,000 tCO2e annually; producers or importers of HFCs, PFCs, SF6, or NF3 that, when used, will emit over 10,000 mtCO2e; sites at which CO2 is geologically sequestered on a commercial scale |
Emission cap for covered sources in 2020 is 4.983 billion tCO2e |
Between 2012 and 2019, 6% of allowances would be distributed to manufacturers of "trade-exposed primary goods" Remaining 94% auctioned (100% by 2020), with revenues distributed (in FY2010-FY2019) as follows: 58.5% to middle- and low-income households as tax credits and/or rebates 12.5% for development and promotion of low-carbon technology 12.5% for energy efficiency programs 4.5% for biological sequestration 1.5% for worker transition assistance 2% for domestic adaptation efforts 1.5% for protection of natural resources 1.5% for international forest protection 3.5% for international clean technology 2% for international adaptation efforts |
Up to 15% of allowance requirement may be achieved through domestic offsets; international offsets or allowances can satisfy an additional 15% |
International reserve allowances must accompany imports of any covered GHG intensive goods and primary products to the United States Least developed nations or those that contribute no more than 0.5% of global emissions are excluded |
EPA to develop emission performance standards for certain non-covered entities that exceed 10,000 tCO2e per year Low-carbon fuel standard for transportation fuels Performance standard for certain coal-fired power plants to capture and geologically sequester not less than 85% of their CO2 emissions |
|
Cap-and-trade system for GHG emissions from multiple sectors A Carbon Market Efficiency Board may implement cost-relief measures |
Producers or importers of petroleum- or coal-based liquid or gaseous fuel that emits GHGs, or facilities that produce or import more than 10,000 mtCO2e of GHG chemicals annually; facilities that use more than 5,000 tons of coal annually; natural gas processing plants or importers (including LNG); or, facilities that emit more than 10,000 mtCO2e of HFCs annually as a byproduct of HFC production |
Emission cap for covered sources in 2020 is 6.087 billion mtCO2e |
In 2012, 5% of the allowances are allocated to electric generators; 10% are allocated to energy intensive industries Remaining allowances are auctioned with revenues used for the following: 54% for consumer assistance (66% of which goes towards providing health insurance coverage, the remainder for rebates and tax relief) 15% of revenues for deficit reduction 11.4% for international activities 7.5% for energy efficiency 7% for natural resource adaptation 7% for green energy research 4% for worker assistance 3% for forestry and agricultural activities 2.7% for states and tribes 2% for transportation alternatives 1% for early action 0.4% for education |
Up to 10% of allowance requirement may be achieved through domestic offsets; international allowances can satisfy an additional 15% |
International reserve allowances must accompany imports of any covered GHG-intensive goods and primary products to the United States Least developed nations or those that contribute no more than 0.5% of global emissions are excluded |
EPA to promulgate regulations that address emissions in uncovered sectors |
Source: Prepared by CRS.
Table 4. GHG Emission Reduction Proposals: 111th Congress
Ordered Chronologically by Introduced Date
|
Bill Number, Sponsor, Introduced Date, and Committee or Floor Action |
General Framework |
Covered Entities/Materials |
Emissions Limit or Target |
Distribution of Allowance Value or Tax/Fee Revenue |
Offset and International Allowance Treatment |
Mechanism to Address Carbon-Intensive Imports |
Additional GHG Reduction Measures |
|
Tax on CO2 content in fossil fuels, starting at $10/short ton, increasing by $10 per year |
Manufacturers, producers, or importers who sell a taxable fuel, which includes coal, petroleum and petroleum products, and natural gas |
Tax freezes if CO2 emissions do not exceed 20% of U.S. 1990 CO2 emissions by 2020 |
No specific provision |
NA |
No specific provision |
No specific provision |
|
Tax on CO2 content in fossil fuels, starting at $15/short ton, increasing by $10 each year emissions target is not met |
Manufacturers, producers, or importers of coal, petroleum, and natural gas |
EPA is to establish (within five years after enactment) annual CO2 emission targets in order to reach goal of 80% below 2005 CO2 emissions by 2050 |
In first year: 76% would support a payroll tax rebate 16% would fund clean energy technology 8% would support affected industry transition assistance (declining to zero by 2017) |
Instructs Department of the Treasury (in consultation with Department of Energy) to submit a report of qualified offset projects but does not allow for projects to generate tax credits |
Department of the Treasury imposes a carbon equivalency fee on imported carbon-intensive goods, including steel, aluminum, and paper; fee based on emissions associated with production of carbon-intensive goods |
No specific provision |
|
Cap-and-trade system for GHG emissions, with an oversight board to manage price path between 2012 and 2019 |
Not explicitly defined |
Target of 4.9 billion mtCO2e for covered entities by 2020 |
Oversight board administers auctions to manage the allowance price path; precise use of auction revenues is not specified |
No specific provision |
No specific provision |
No specific provision |
|
Hybrid cap/tax system for GHG emissions: covered persons must purchase an emission permit from the Department of the Treasury when a "GHG emission substance" is produced or enters the United States; permits may not be sold or exchanged; price for emission permits based on achieving annual emission targets |
Coal producers, petroleum refineries; producers of other GHG emission substances (including natural gas, among others); importers of GHG emission substances | 25% below 2005 GHG emissions by 2020 |
Establishes trust fund that would receive appropriations equal to revenue received by selling emission permits Precise use of the revenue is not specified |
No specific provision |
Department of the Treasury imposes a GHG emission permit equivalency fee on imported carbon-intensive goods, including steel, aluminum, and paper |
No specific provision |
|
Cap-and-trade system for CO2 emissions from multiple sectors |
Person who makes the first sale in United States of coal, oil, natural gas, and any fossil-fuel-derived products used as a combustible fuel |
25% below 2005 CO2 emissions by 2020 |
100% of allowances sold via auction; proceeds used to fund consumer dividend payments; each month, every person with a Social Security number would receive an equal payment |
No specific provision |
Department of the Treasury imposes a carbon equivalency fee on imported carbon-intensive goods, including steel, aluminum, and paper |
No specific provision |
|
Tax on fossil fuels, starting at $15/short ton of CO2 emissions, and increasing by approximately 6.5% each year, plus cost-of-living adjustments |
Manufacturers, producers, or importers of coal, petroleum, and natural gas |
No specific provision |
Tax revenue used to offset a corresponding reduction in payroll tax rates (employee, employer, and self-employed) |
No specific provision |
Imposes a tax on "imported taxable products" in relation to fossil fuels used or the CO2 emissions generated during the product's manufacturing process |
No specific provision |
Reported by the Committee on Energy and Commerce on June 5, 2009 Passed the House on June 26, 2009 For more information, see CRS Report R40643, Greenhouse Gas Legislation: Summary and Analysis of H.R. 2454 as Passed by the House of Representatives, coordinated by Mark Holt and Gene Whitney |
Cap-and-trade system for GHG emissions from multiple sectors |
Electricity generators, various fuel producers and importers, fluorinated gas producers and importers, geological sequestration sites, various industrial sources, and local distribution companies (LDCs) that deliver natural gas Covered entity coverage is phased in by category so that all of the above are under the cap in 2016 |
17% below 2005 emissions from covered sources by 2020 |
Emission allowance value distributed (as no-cost allowances or auction revenue) in the following manner in 2016: 30% (at minimum) to electricity LDCs; 0.5% for small electric LDCs; 9% to natural gas LDCs; 1.5% to states for home-heating oil consumers 15% directly to low-income consumers 13.4% to energy-intensive, trade-exposed industries; up to 3.5% to merchant coal units; 2% to petroleum refineries plus 0.25% for small business refineries; up to 1.5% for certain long-term power contract operators 7.1% to states to support renewable energy and energy efficiency efforts 6% to promote technological advances 5% to reduce international deforestation 0.2% for deficit reduction 5% to further other objectives |
In 2016, approximately 27% of an entity's allowance obligation can be satisfied with offsets; this percentage increases to 36% by 2030 Up to half of an entity's offsets can come from domestic sources and up to half from international sources Unless otherwise determined by EPA, covered entities may use unlimited amount of international allowances from "qualifying programs" |
Energy-intensive, trade-exposed industries to receive allowances at no cost until phased out in mid-2030s; and EPA to promulgate rules establishing an international reserve allowance system for any covered good of an eligible industrial sector from a covered country Exemptions are provided for (1) least developed countries, (2) countries that emit less than 0.5% of global GHG emissions, and (3) countries meeting specific criteria |
Establishes a separate cap-and-trade program that controls HFC emissions Directs EPA to establish emission performance standards for select sources not covered by the emissions cap |
Reported by the Committee on Environment and Public Works (a "Manager's Amendment" in the nature of substitute) on Nov. 5, 2009 |
Cap-and-trade system for GHG emissions from multiple sectors |
Electricity generators, various fuel producers and importers, fluorinated gas producers and importers, geological sequestration sites, various industrial sources, and LDCs that deliver natural gas Coverage is phased in by category so that all of the above are under the cap in 2016 |
20% below 2005 emissions from covered sources by 2020 |
Emission allowance value is distributed in the following manner in 2016: 25.8% (at minimum) to electricity LDCs; 0.94% for small electric LDCs 7.7% to natural gas LDCs 1.3% to states for home-heating oil consumers 12.9% directly to low-income consumers 12.1% to energy-intensive, trade-exposed industries up to 3.0% to merchant coal units 0.64% to petroleum refineries plus 0.86% for small business refineries and 0.43% for medium refineries up to 1.3% for certain long-term power contract operators 5.97% to states to support renewable energy and energy efficiency efforts 5.6% to promote technological advances 1.92% for GHG reductions in the transportation sector 10.3% for deficit reduction 8% to further other objectives |
In 2016, approximately 35% of an entity's allowance submission can comprise offsets; up to 75% of an entity's offsets can come from domestic sources and up to 25% from international sources Unless otherwise determined by EPA, unlimited use of international allowances from "qualifying programs" |
Trade-exposed, carbon-intensive industries to receive allowances at no cost; in addition, the bill states: "It is the sense of the Senate that this Act will contain a trade title that will include a border measure that is consistent with our international obligations and designed to work in conjunction with provisions that allocate allowances to energy-intensive and trade-exposed industries" |
Establishes a separate cap-and-trade program that controls HFCs |
|
Hybrid cap/tax system for CO2 emissions: covered entities submit "carbon shares" for CO2 emissions associated with the use of the fossil fuels Trading of carbon shares is restricted to a dedicated exchange established by Treasury Price ceiling for carbon shares: initially at $21/tCO2 in 2012; if reached, additional shares made available, and this revenue would support mitigation from non-covered entities |
Fossil fuel producers (e.g., mines, wells) and importers who introduce "fossil carbon" into the United States economy |
20% below 2005 GHG levels from all sources by 2020 |
All carbon shares sold in auctions Subject to the appropriations process, 75% of the revenue would be distributed monthly in non-taxable dividends to all legally residing individuals in the United States Subject to the appropriations process, 25% could be used to support a myriad of policy objectives, including worker transition assistance, adaptation, technology development, energy efficiency, biological sequestration, and deficit reduction |
Offsets are not allowed for compliance purposes |
Treasury may impose fees for the "production process carbon" associated with commodities imported into the United States |
No specific provision |
|
Cap-and-trade system for GHG emissions from multiple sectors |
Electricity generators, various fuel producers and importers, fluorinated gas producers and importers, geological sequestration sites, various industrial sources, and LDCs that deliver natural gas Covered entity coverage is phased in by category so that all of the above are under the cap in 2016 |
17% below 2005 emissions from covered sources by 2020 |
Emission allowance value distributed in the following manner in 2016: 30% (at minimum) to electric LDCs; 9% for natural gas LDCs; 1.5% to states for home-heating oil and propane consumers; 12.3% directly to low-income consumers 15% to trade-exposed industries; up to 0.5% to merchant coal units; 3.75% to petroleum refineries; up to 4.5% to long-term power contract operators 2% to states to support renewable energy and energy efficiency efforts 4% to promote technological advances 9.2% to support transportation infrastructure and efficiency 6.75% for deficit reduction 1.5% auctioned to help mitigate against high allowance prices |
In 2016, approximately 35% of an entity's allowance submission can comprise offsets; up to 75% of an entity's offsets can come from domestic sources and up to 25% from international sources Unless otherwise determined by EPA, unlimited use of international allowances from "qualifying programs" |
Trade-exposed, carbon-intensive industries to receive allowances at no cost EPA to establish an international reserve allowance system for covered goods of an eligible industrial sector from a covered country Exemptions are provided for (1) least developed countries, (2) countries that emit less than 0.5% of global GHG emissions, and (3) countries meeting the specific criteria |
Establishes a separate cap-and-trade program that controls HFC |
Source: Prepared by CRS.
Table 5. GHG Emission Reduction Proposals: 112th Congress
Ordered Chronologically by Introduced Date
|
Bill Number, Sponsor, Introduced Date, and Committee or Floor Action |
General Framework |
Covered Entities/Materials |
Emissions Limit or Target |
Distribution of Allowance Value or Tax/Fee Revenue |
Offset and International Allowance Treatment |
Mechanism to Address Carbon-Intensive Imports |
Additional GHG Reduction Measures |
|
Tax on CO2 emissions from combustion of fossil fuels and other materials Rate starts at $10/short ton of CO2 emissions, increasing by $10 per year until emissions target reached |
Manufacturers, producers, or importers who sell coal, petroleum and petroleum products, natural gas, biomass, municipal solid waste, and any other organic material sold for energy use |
80% reduction of CO2 emission levels in 1990 |
Tax revenue is distributed annually in pro rata payments to individuals with a taxpayer identification number |
No specific provision |
Border adjustment fees for comparable imported products |
No specific provision |
|
Hybrid cap/tax approach on GHG emissions: covered entities purchase permits from the Department of the Treasury for expected emissions associated with combustion or use of covered material (e.g., fossil fuels) Permits cannot be sold or traded Price floor and price ceiling (i.e., price collar), ranges between $6.25 and $18.75 in 2015 |
Coal producers, petroleum refineries, first seller of natural gas, producers and importers of GHG emission substances |
Average emissions between 2015 and 2019 equal to GHG emissions in 2005 by 2020 |
75% of the permit revenue is used to send monthly dividend payments to taxpayers 25% retained for deficit reduction |
No specific provision |
Unless an exporting nation has implemented equivalent measures, imports of carbon-intensive goods will be subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the costs domestic producers of comparable products incur due to the carbon price Exporters of carbon-intensive goods may receive a payment related to the increased costs of inputs (i.e., fossil fuels) subject to the fee |
No specific provision |
Source: Prepared by CRS.
Table 6. GHG Emission Reduction Proposals: 113th Congress
Ordered Chronologically by Introduced Date
|
Bill Number, Sponsor, Introduced Date, and Committee or Floor Action |
General Framework |
Covered Entities/Materials |
Emissions Limit or Target |
Distribution of Allowance Value or Tax/Fee Revenue |
Offset and International Allowance Treatment |
Mechanism to Address Carbon-Intensive Imports |
Additional GHG Reduction Measures |
|
Upstream tax/fee on fossil fuels based on their carbon content |
EPA would impose a fee on coal, petroleum, and natural gas produced or imported into the United States |
GHG emissions at 80% below 2005 levels by 2050 |
60% distributed to EPA to provide monthly rebates to legal residents 40% finances a trust fund that distributes the following amounts annually for 10 years: $7.5 billion to mitigate economic impacts of Energy Intensive Trade Exposed (EITE) industries (25% must be energy efficiency investments in EITE industries) $5 billion to support the Weatherization Assistance Program $1 billion for job training and transition assistance $2 billion for Advanced Research Projects Agency-Energy Any remaining funds in the trust fund are applied to deficit reduction Revenues from the carbon equivalency fee on imports: 50% to EPA to distribute to state/local programs for adaptation, infrastructure improvement, and environmental protection 50% to the Department of Transportation to support state/local critical infrastructure and transportation projects that reduce vehicular traffic |
No specific provision |
A carbon equivalency fee would apply to imports of carbon-pollution-intensive goods |
Directs EPA to submit report to Congress describing fugitive methane emissions related to leaks in natural gas infrastructure and recommending ways to address these leaks; directs EPA to enter agreement with the National Academy of Sciences to study GHG emissions from non-covered sources and make recommendations for reducing these emissions |
|
Fee on fossil fuels based on their carbon content and certain facilities Fee set at $42/mtCO2 emissions in 2015, increasing by 2% plus inflation each year |
Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of CO2 annually |
Fee continues until national GHG emissions are 80% below 2005 levels |
Fee revenue used to create the American Opportunity Fund, appropriations from the fund could support the following (percentages not specified): income assistance to low-income households facing disproportionate energy costs tax cut offsets Social Security benefit increases tuition assistance-infrastructure improvements dividends to individuals and families transition assistance to workers in energy-intensive industries climate mitigation and adaptation national debt reduction |
No specific provisions |
Imports of carbon-intensive goods subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price and (2) the comparable costs (e.g., GHG fees) imposed by the nation exporting the material Exporters of carbon-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee |
Separate fee for non-CO2 GHG emissions at facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 mtCO2e (not including CO2 emissions) Additional fee for methane emissions from fossil fuel extraction, distribution, and combustion |
Source: Prepared by CRS.
Table 7. GHG Emission Reduction Proposals: 114th Congress
Ordered Chronologically by Introduced Date
|
Bill Number, Sponsor, Introduced Date, and Committee or Floor Action |
General Framework |
Covered Entities/Materials |
Emissions Limit or Target |
Distribution of Allowance Value or Tax/Fee Revenue |
Offset and International Allowance Treatment |
Mechanism to Address Carbon-Intensive Imports |
Additional GHG Reduction Measures |
|
Hybrid cap/tax approach on GHG emissions: covered entities purchase permits from the Department of the Treasury for expected emissions associated with fossil fuel use Permits cannot be sold or traded Price floor and price ceiling, ranging between $18.75 and $31.25 in 2017, increasing each year |
Coal producers, petroleum refineries, first seller of natural gas, producers and importers of GHG emission substances |
Average emissions between 2016 and 2020 equal to 90% of GHG emissions in 2005 by 2020 |
100% of the permit revenue is used to send monthly dividend payments to taxpayers |
No specific provision |
Unless an exporting nation has implemented equivalent measures, imports of carbon-intensive goods will be subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the costs domestic producers of comparable products incur due to the carbon price Exporters of carbon-intensive goods may receive a payment related to the increased costs of inputs (i.e., fossil fuels) subject to the fee |
No specific provision |
|
Imposes an excise tax on GHG emissions Tax starts at $30/mtCO2e, increasing each year by 4% plus inflation |
Tax applies to GHG emissions associated with fossil fuel combustion and GHG emissions from facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually Directs the Treasury Secretary to apply the tax at natural "chokepoints" in the supply chain in a way that maximizes the coverage of the tax on sources of emission while minimizing the burden on administration and compliance |
No specific provisions |
Distributes monthly energy refund payments to households based on the household's gross income level; households with incomes up to 200% above poverty line are eligible, but higher-income households may receive scaled refunds under certain conditions; payments are based on estimates (calculated by the Energy Information Administration) of loss of purchasing power due to the carbon tax During the first 10 years of the tax, 2% of the revenues may be used to provide assistance to workers in the coal industry displaced by the act Although not explicitly tied to the GHG tax revenue, the bill would gradually reduce the highest tax rate on corporate income from 35% to 28% |
A tax refund is provided for GHG emissions that are captured and permanently sequestered |
The Secretary of the Treasury may impose an equivalency fee on the person importing a good that would have had an increased cost (imposed by the carbon tax) if the good were produced in the United States Exporters of carbon-intensive goods may receive compensation for losses related to the tax system |
No specific provision |
|
Fee on fossil fuels based on their carbon content and on certain facilities for GHG emissions |
Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs |
Fee continues until national GHG emissions are 80% below 2005 levels |
The bill reduces the highest tax rate on corporate income from 35% to 29%, provides an annual tax credit for each individual, provides an equivalent benefit to individuals not eligible for the tax credit, provides up to $20 billion in annual cost-mitigation grants to states to be used to assist low-income and rural households with energy costs and support job training and worker assistance programs |
No specific provisions |
Imports of carbon-intensive goods subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price, and (2) the comparable costs (e.g., GHG fees) imposed by the nation exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee |
Separate fee for fluorinated GHGs Separate fee for GHGs (other than CO2 and fluorinated gas emissions) set at $45/mtCO2e in 2016, increasing by 2% plus inflation each year Additional fee for methane emissions from fossil fuel extraction, distribution, and combustion (as determined by Secretary of the Treasury) |
|
Fee on fossil fuels based on carbon content Fee starts at $15 mtCO2e, increasing annually by $2 to $4, until reaching $73 in 2035; increasing thereafter by 5% plus inflation |
A carbon content fee is imposed on manufacturers, producers, or importers of a carbon polluting substance, which includes fossil fuels; carbon content determined by the Secretary of the Treasury |
Target of 5.8 billion metric tons in 2020, which is equivalent to 20% below 2005 CO2 emissions from fossil fuel combustion |
Distributes collected revenue from fees in equal quarterly rebates to each citizen or permanent resident; Secretary of the Treasury to issue regulations implementing rebate system; the rebates are phased out and eliminated for households earning over $100,000/year (with annual inflation adjustments); fees from imported materials would be used to support other objectives, including energy efficiency |
No specific provisions |
A carbon equivalency fee would apply to imports of carbon-pollution-intensive goods, as determined by the Secretary of the Treasury |
Establishes the Interagency Climate Council to monitor GHG emission progress and issue regulations to help meet reduction targets; creates a grant program to promote no-till farming practices and a nitrogen uptake pilot program |
Source: Prepared by CRS.
Table 8. GHG Emission Reduction Proposals: 115th Congress
Ordered Chronologically by Introduced Date
|
Bill Number, Sponsor, Introduced Date, and Committee or Floor Action |
General Framework |
Covered Entities/Materials |
Emissions Limit or Target |
Distribution of Allowance Value or Tax/Fee Revenue |
Offset and International Allowance Treatment |
Mechanism to Address Carbon-Intensive Imports |
Additional GHG Reduction Measures |
|
Imposes an excise tax on GHG emissions Tax starts at $30/metric ton of CO2e, increasing each year by 4% plus inflation |
Tax applies to GHG emissions associated with fossil fuel combustion and GHG emissions from persons who (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually Directs the Treasury Secretary to apply the tax at natural chokepoints in the supply chain in a way that maximizes the coverage of the tax on sources of emission while minimizing the burden on administration and compliance |
No specific provisions |
Distributes monthly energy refund payments to households, based on the household's gross income level; households with incomes up to 200% above poverty line are eligible, but higher-income households may receive scaled refunds under certain conditions; payments are based on estimates (calculated by the Energy Information Administration) of loss of purchasing power due to the carbon tax During the first 10 years of the tax, 2% of the revenues may be used to provide assistance to workers in the coal industry displaced by the act Although not explicitly tied to the GHG tax revenue, the bill would gradually reduce the highest tax rate on corporate income from 35% to 28% |
A tax refund is provided for GHG emissions that are captured and permanently sequestered |
The Secretary of the Treasury may impose an equivalency fee on the person importing a good that would have had an increased cost (imposed by the carbon tax) if the good is produced in the United States Exporters of carbon-intensive goods may receive compensation for losses related to the tax system |
|
|
Fee on fossil fuels based on their carbon content and certain facilities for GHG emissions Fee set at $49/ton CO2 emissions in 2018, increasing by 2% plus inflation each year |
Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually |
Fee continues until national GHG emissions are 80% below 2005 levels |
The bill reduces the highest tax rate on corporate income from 35% to 29%, provides an annual tax credit for each individual, provides an equivalent benefit to individuals not eligible for the tax credit, provides up to $20 billion in annual cost-mitigation grants to states to be used to assist low-income and rural households with energy costs and support job training and worker assistance programs |
No specific provisions |
Imports of carbon-intensive goods subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price, and (2) the comparable costs (e.g., GHG fees) imposed by the nation exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee |
Separate fee for fluorinated GHGs Fee for facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 mtCO2e emissions (other than CO2 or fluorinated GHGs) Additional fee for GHG emissions resulting from venting, flaring, and leaking across the coal, natural gas, and petroleum supply chains (as determined by Secretary of the Treasury) |
|
Fee on fossil fuels based on their carbon content and certain facilities for GHG emissions Fee set at $49/ton CO2 emissions in 2018, increasing by 2% plus inflation each year |
Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually |
Fee continues until national GHG emissions are 80% below 2005 levels |
The bill reduces the highest tax rate on corporate income from 35% to 29%, provides an annual tax credit for each individual, provides an equivalent benefit to individuals not eligible for the tax credit, provides up to $20 billion in annual cost-mitigation grants to states to be used to assist low-income and rural households with energy costs and support job training and worker assistance programs |
No specific provisions |
Imports of carbon-intensive goods subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price and (2) the comparable costs (e.g., GHG fees) imposed by the nation exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee |
Separate fee for fluorinated GHGs Fee for facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 mtCO2e (other than CO2 or fluorinated GHGs) Additional fee for GHG emissions resulting from venting, flaring, and leaking across the coal, natural gas, and petroleum supply chains (as determined by Secretary of the Treasury) |
|
Tax on fossil fuels based on their carbon content Tax set at $49/mtCO2 in 2019, increasing by 2% plus inflation each year |
Tax applies to manufacturers, producers, or importers of coal, petroleum, and natural gas |
No specific provision |
Establishes a trust fund that would receive appropriations equal to tax revenue received in the Treasury; the trust fund would provide annual funding for the following infrastructure programs:
In addition, the trust fund provides:
Any remaining revenues supports a consumer tax rebate for households with incomes up to 350% of the poverty line |
No specific provisions |
The Secretary of the Treasury shall impose a fee on imports of carbon-intensive goods; the fee will be equivalent to the cost that domestic producers incur due to the carbon tax; this fee expires if the exporting nation implements equivalent measures or if an international agreement requires equivalent measures |
No specific provisions |
|
Cap-and-trade system for CO2 emissions from fossil fuel combustion Permits sold through quarterly auctions by the Department of the Treasury Auction revenue distributed to individuals, often described as a "cap and dividend" approach A permit reserve and borrowed permits from future years may be used to help stabilize auction prices |
Covered materials include crude oil, coal, natural gas, and products derived from these materials used for combustion Covered entities include petroleum refineries and importers, coal mines and importers, and natural gas deliverers (as reported on Energy Information Administration Form 176) and some natural gas processors |
2020 limit: permits sold equal to 20% below 2005 2025 limit: permits sold equal to 30% below 2005 U.S. CO2 emissions 2030 limit: permits sold equal to 40% below 2005 U.S. CO2 emissions 2040 limit: permits sold equal to 60% below 2005 U.S. CO2 emissions |
Auction revenue distributed via quarterly dividend payments to all persons with a valid Social Security number |
No specific provisions |
Unless an exporting nation has implemented equivalent measures, imports of carbon-intensive goods will be subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the costs domestic producers of comparable products incur due to the carbon price Exporters of carbon-intensive goods may receive compensation for losses related to the permit system |
EPA directed to promulgate regulations to address other GHG emissions that are not covered by the permit program; emissions "directly attributable to the production of animals for food or food products" are excluded |
|
Cap-and-trade system for CO2 emissions from fossil fuel combustion Permits sold through quarterly auctions by the Department of the Treasury Auction revenue distributed to individuals, often described as a "cap and dividend" approach A permit reserve and borrowed permits from future years may be used to help stabilize auction prices |
Covered materials include crude oil, coal, natural gas, and products derived from these materials used for combustion Covered entities include petroleum refineries and importers, coal mines and importers, and natural gas deliverers (as reported on Energy Information Administration Form 176) and some natural gas processors |
2020 target: reduce U.S. CO2 emissions to 20% below 2005 levels 2030 target: 40% below 2005 levels |
Auction revenue distributed via quarterly dividend payments to all persons with a valid Social Security number |
No specific provisions |
Unless an exporting nation has implemented equivalent measures, imports of carbon-intensive goods will be subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the costs domestic producers of comparable products incur due to the carbon price Exporters of carbon-intensive goods may receive compensation for losses related to the permit system |
EPA directed to promulgate regulations to address other GHG emissions that are not covered by the permit program; emissions "directly attributable to the production of animals for food or food products" are excluded |
|
Fee on fossil fuels based on their carbon content and certain facilities for GHG emissions Fee set at $50/ton CO2 emissions in 2019, increasing by 2% plus inflation each year |
Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually |
Fee continues until national GHG emissions are 80% below 2005 levels |
The bill provides an annual tax credit for each individual, provides an equivalent benefit to individuals not eligible for the tax credit, provides up to $10 billion in annual cost-mitigation grants to states to be used to assist low-income and rural households with energy costs and support job training and worker assistance programs; this amount increases annually |
No specific provisions |
Imports of carbon-intensive goods subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price and (2) the comparable costs (e.g., GHG fees) imposed by the nation exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee |
Separate fee for fluorinated GHGs Separate fee for GHGs (other than CO2 and fluorinated gas emissions) at facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 mtCO2e emissions Additional fee for GHG emissions resulting from venting, flaring, and leaking across the coal, natural gas, and petroleum supply chains (as determined by Secretary of the Treasury) |
|
Fee on fossil fuels based on their carbon content and certain facilities for GHG emissions Fee set at $50/ton CO2 emissions in 2019, increasing by 2% plus inflation each year |
Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually |
Fee continues until national GHG emissions are 80% below 2005 levels |
The bill provides an annual tax credit for each individual, provides an equivalent benefit to individuals not eligible for the tax credit, provides up to $10 billion in annual cost-mitigation grants to states to be used to assist low-income and rural households with energy costs and support job training and worker assistance programs; this amount increases annually |
No specific provisions |
Imports of carbon-intensive goods subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price and (2) the comparable costs (e.g., GHG fees) imposed by the nation exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee |
Separate fee for fluorinated GHGs Separate fee for GHGs (other than CO2 and fluorinated gas emissions) at facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 mtCO2e Additional fee for GHG emissions resulting from venting, flaring, and leaking across the coal, natural gas, and petroleum supply chains (as determined by Secretary of the Treasury) |
|
Tax on fossil fuels based on their carbon content and on emissions from specific facilities and sources Tax starts at $24/metric ton of CO2e, increasing by 2% plus inflation each year |
Tax applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, facilities in specified industrial sectors that emit more than 25,000 metric tons of CO2e annually, facilities that manufacture or import specified products, and facilities that combust biomass with emissions above 25,000 metric tons of CO2e |
No specific provision Authorizes the Secretary of the Treasury to increase the tax rate if annual, cumulative emission reduction targets are not met (e.g., 5,177 million metric tons CO2e in 2020) |
Establishes a trust fund that receives appropriations equal to 75% of tax revenue deposited in the Treasury; from this amount, the trust fund provides annual funding for the following objectives ("as provided in appropriations acts") between FY2021 and FY2030: 70% to the Federal Highway Trust Fund; 10% to the states as grants to low-income households; 5.0% for frequent and chronic coastal flooding mitigation and adaptation infrastructure projects; 3.0% for displaced energy workers; 2.7% for various energy-related research and development objectives (e.g., carbon capture and storage); 3.0% to support agricultural GHG sequestration projects; 2.5% for the Airport and Airway Trust Fund; 2.0% for the Abandoned Mine Reclamation Fund; 1.5% for the Department of Energy weatherization program; 0.1% for the Leaking Underground Storage Tank trust fund; 0.1% for the Reforestation Trust Fund; 0.1% to decrease the environmental impact of renewable energy activities pursuant to Section 931 of the Energy Policy Act of 2005 |
No specific provisions |
Imports of carbon-intensive goods subject to a border tax—determined by the Secretary of the Treasury—that is equivalent to the costs in comparable domestic manufactured goods (associated with the carbon tax) Exporters of energy-intensive goods may receive a tax refund related to the increased costs of inputs (i.e., fossil fuels) subject to the tax |
Establishes a conditional moratorium on Clean Air Act GHG regulations for stationary emissions sources (with some exceptions) Creates a National Climate Commission to set five-year emission reduction goals between 2025 and 2050 and assess the effectiveness of federal policies in meeting these goals |
|
Fee on fossil fuels based on their GHG content Fee set at $15/mtCO2e emissions in 2019, increasing by $10 each year If emission reduction targets are not met, fee increases by $15; if targets met, fee does not increase Provides a rebate for fuels used on a farm |
Covered entities include petroleum refineries and importers, coal mines and importers, natural gas deliverers, and some natural gas processors |
Emission reduction targets apply to fossil fuel combustion emissions; starting in 2022, annual reductions of 5% of 2015 levels (253 million mtCO2e) between 2022 and 2029; less stringent reductions in subsequent years |
Establishes a trust fund that receives appropriations equal to emission fee revenues received in the Treasury; monies in the trust fund are available (after administrative expenses) to provide monthly payments to eligible individuals (i.e., persons with a Social Security number or taxpayer identification number); adults get one share and children receive a half-share |
No specific provisions |
Imports of carbon-intensive products subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the excess of (1) GHG emissions from production multiplied by the relevant U.S. emissions fee over (2) the total foreign product cost of carbon; Exporters of carbon-intensive products (and covered fuels) may receive a refund under an analogous formula |
Separate fee for fluorinated GHGs set at 10% of fee for fossil fuel emissions Suspends enforcement of certain Clean Air Act GHG regulations; if EPA determines (in 2030 and every five years thereafter) emission targets are not met, the enforcement suspension would cease and EPA must promulgate regulations to reduce emissions from covered fuels |
|
Fee on fossil fuels based on their GHG content Fee set at $15/mtCO2e emissions in 2019, increasing by $10 each year If emission reduction targets are not met, fee increases by $15; if targets met, fee does not increase Provides a rebate for fuels used on a farm |
Covered entities include petroleum refineries and importers, coal mines and importers, natural gas deliverers, and some natural gas processors |
Emission reduction targets apply to fossil fuel combustion emissions; starting in 2022, annual reductions of 5% of 2015 levels (253 million mtCO2e) between 2022 and 2029; this equates to a 50% reduction in 2030 compared to 2005 levels; less stringent reductions in subsequent years |
Establishes a trust fund that receives appropriations equal to emission fee revenues received in the Treasury; monies in the trust fund are available (after administrative expenses) to provide monthly payments to eligible individuals (i.e., persons with a Social Security number or taxpayer identification number); adults get one share and children receive a half-share |
No specific provisions |
Imports of carbon-intensive products subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the excess of(1) GHG emissions from production multiplied by the relevant U.S. emissions fee over (2) the total foreign product cost; Exporters of carbon-intensive products (and covered fuels) may receive a refund under an analogous formula |
Separate fee for fluorinated GHGs set at 10% of fee for fossil fuel emissions Directs EPA to evaluate effectiveness of fee program in meeting emission reduction targets; if targets are met, EPA may review existing regulations on fossil fuel combustion and fluorinated GHG emissions |
Table 9. GHG Emission Reduction Proposals: 116th Congress
Ordered Chronologically by Introduced Date
|
Bill Number, Sponsor, Introduced Date, and Committee or Floor Action |
General Framework |
Covered Entities/Materials |
Emissions Limit or Target |
Distribution of Allowance Value or Tax/Fee Revenue |
Offset and International Allowance Treatment |
Mechanism to Address Carbon-Intensive Imports |
Additional GHG Reduction Measures |
|
Fee on fossil fuels based on their GHG content Fee set at $15/mtCO2e emissions in 2019, increasing by $10 each year plus inflation If emission reduction targets are not met, fee increases by $15 plus inflation; if targets met, fee does not increase Provides a rebate for fuels used on a farm and for fuels or their derivatives used by U.S. Armed Forces |
Covered entities include petroleum refineries and importers, coal mines and importers, natural gas deliverers, and some natural gas processors |
Emission reduction targets apply to fossil fuel combustion emissions; starting in 2025, annual reductions of 5% of 2016 levels (248 million mtCO2e) between 2025 and 2034; annual reductions of 2.5% of 2016 levels between 2035 and 2050 Fee ceases if emissions from covered fuels decrease to 10% of 2016 levels (497 million mtCO2e) and monthly dividend check reach certain levels |
Establishes a trust fund that receives appropriations equal to emission fee revenues received in the Treasury; monies in the trust fund are available (after administrative expenses) to provide monthly payments to eligible individuals (i.e., persons with a Social Security number or taxpayer identification number); adults get one share and children receive a half-share |
No specific provisions |
Imports of carbon-intensive products subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the excess of (1) GHG emissions from production multiplied by the relevant U.S. emissions fee over (2) the total foreign product cost of carbon Exporters of carbon-intensive products (and covered fuels) may receive a refund under an analogous formula |
Separate fee for fluorinated GHGs set at 10% of fee for fossil fuel emissions Suspends enforcement of certain Clean Air Act GHG regulations; if EPA determines (in 2030 and every five years thereafter) emission targets are not met, the enforcement suspension would cease and EPA must promulgate regulations to reduce emissions from covered fuels |
This proposal is identical to H.R. 1960 (Beyer) |
Cap-and-trade system for CO2 emissions from fossil fuel combustion Permits sold through quarterly auctions by the Department of the Treasury Auction revenue distributed to individuals, often described as a "cap and dividend" approach A permit reserve and borrowed permits from future years may be used to help stabilize auction prices |
Covered materials include crude oil, coal, natural gas, and products derived from these materials used for combustion Covered entities include petroleum refineries and importers, coal mines and importers, and natural gas deliverers (as reported on Energy Information Administration Form 176) and some natural gas processors |
2020 limit: permits sold equal to 12.5% below 2005 U.S. CO2 emissions 2025 limit: permits sold equal to 30% below 2005 U.S. CO2 emissions 2030 limit: permits sold equal to 50% below 2005 U.S. CO2 emissions 2040 limit: permits sold equal to 80% below 2005 U.S. CO2 emissions |
Auction revenue distributed via quarterly dividend payments to all persons with a valid Social Security number |
No specific provisions |
Unless an exporting nation has implemented equivalent measures, imports of carbon-intensive goods will be subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the costs domestic producers of comparable products incur due to the carbon price Exporters of carbon-intensive goods may receive compensation for losses related to the permit system |
EPA directed to promulgate regulations to address other GHG emissions that are not covered by the permit program; emissions "directly attributable to the production of animals for food or food products" are excluded |
This proposal is identical to S. 940 (Van Hollen) |
Cap-and-trade system for CO2 emissions from fossil fuel combustion Permits sold through quarterly auctions by the Department of the Treasury Auction revenue distributed to individuals, often described as a "cap and dividend" approach A permit reserve and borrowed permits from future years may be used to help stabilize auction prices |
Covered materials include crude oil, coal, natural gas, and products derived from these materials used for combustion Covered entities include petroleum refineries and importers, coal mines and importers, and natural gas deliverers (as reported on Energy Information Administration Form 176) and some natural gas processors |
2020 limit: permits sold equal to 12.5% below 2005 U.S. CO2 emissions 2025 limit: permits sold equal to 30% below 2005 U.S. CO2 emissions 2030 limit: permits sold equal to 50% below 2005 U.S. CO2 emissions 2040 limit: permits sold equal to 80% below 2005 U.S. CO2 emissions |
Auction revenue distributed via quarterly dividend payments to all persons with a valid Social Security number |
No specific provisions |
Unless an exporting nation has implemented equivalent measures, imports of carbon-intensive goods will be subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the costs domestic producers of comparable products incur due to the carbon price Exporters of carbon-intensive goods may receive compensation for losses related to the permit system |
EPA directed to promulgate regulations to address other GHG emissions that are not covered by the permit program; emissions "directly attributable to the production of animals for food or food products" are excluded |
|
Fee on fossil fuels based on their carbon content and certain facilities for GHG emissions Fee set at $52/ton CO2 emissions in 2020, increasing by 6% plus inflation each year |
Fee applies to coal at mines, petroleum at refineries, natural gas at processors, imported fossil fuels, and facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 tons of GHGs annually Fee also applies to certain industrial sources, regardless of their emissions output, including aluminum production, HCFC-22 production and HFC-23 destruction, and fluorinated gas production; this fee starts as a percentage of the fossil fuel fee and increases annually |
Fee continues until national GHG emissions are 80% below 2005 levels |
The bill provides an annual tax credit for each individual; provides an equivalent benefit to individuals not eligible for the tax credit Provides up to $10 billion in annual grants to states to be used to (1) assist low-income and rural households with energy costs, (2) support job training and worker assistance programs, and (3) assist the state in climate change adaptation or transition to a low-carbon economy; this amount increases annually |
No specific provisions |
Imports of carbon-intensive goods subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the difference in (1) costs domestic producers of comparable products incur due to the carbon price and (2) the comparable costs (e.g., GHG fees) imposed by the nation exporting the material Exporters of energy-intensive goods may receive a refund related to the increased costs of inputs (i.e., fossil fuels) subject to the fee |
Separate fee for fluorinated GHGs Separate fee for GHGs (other than CO2 and fluorinated gas emissions) at facilities that (1) are subject to GHG reporting requirements in 40 C.F.R. Part 98 and (2) emit more than 25,000 mtCO2e emissions Additional fee for GHG emissions (described as "associated emissions") resulting from venting, flaring, and leaking across the coal, natural gas, and petroleum supply chains (as determined by Secretary of the Treasury) |
This proposal is identical to H.R. 4051 (Panetta) |
Fee on fossil fuels based on their GHG content Fee on solid biomass based on GHG content as determined by EPA, using a life-cycle analysis Fee set at $15/mtCO2e emissions in 2020, increasing by $15 each year If emission reduction targets are not met, fee increases by $30; if annual targets met, fee does not increase Fee collected quarterly |
Covered entities include petroleum refineries and importers, coal mines and importers, natural gas wells and importers, solid biomass combustion facilities |
Emission reduction targets apply to emissions from covered fuels; starting in 2020, target equals 90% of 2017 levels, reaching 59% of 2017 levels in 2025 and 45% of 2017 levels in 2030; in subsequent years, the targets are reduced by 2.25% of 2017 emission levels each year Fee ceases if emissions from covered fuels equal 10% of 2017 emission levels |
Establishes a trust fund that receives appropriations equal to emission fee revenues collected in the Treasury; monies in the trust fund (after administrative expenses) are allocated as follows: 70% to provide monthly payments to eligible individuals (i.e., persons with a Social Security number or taxpayer identification number); adults get one share and children receive a half-share; payments are phased-out at certain income levels 20% to support existing and new infrastructure funding programs and other objectives 5% to the Department of Energy to support development of GHG mitigation technology and related technologies 5% to support transition assistance through new and existing programs |
Directs the Department of Agriculture (in consultation with EPA) to provide payments for farmers and landowners for eligible sequestration activities; directs Department of Energy to provide payments for direct air capture of CO2 emissions; the funding source for these payments is not specified |
Imports of carbon-intensive products subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the excess of (1) GHG emissions from production multiplied by the relevant U.S. emissions fee over (2) the total foreign product cost Exporters of carbon-intensive products (and covered fuels) may receive a refund under an analogous formula |
Separate fee for fluorinated GHGs set at 20% of fee for fossil fuel emissions |
This proposal is identical to S. 2284 (Coons) |
Fee on fossil fuels based on their GHG content Fee on solid biomass based on GHG content as determined by EPA using a life-cycle analysis Fee set at $15/mtCO2e emissions in 2020, increasing by $15 each year If emission reduction targets are not met, fee increases by $30; if annual targets met, fee does not increase Fee collected quarterly |
Covered entities include petroleum refineries and importers, coal mines and importers, natural gas wells and importers, solid biomass combustion facilities |
Emission reduction targets apply to emissions from covered fuels; starting in 2020, target equals 90% of 2017 levels, reaching 59% of 2017 levels in 2025 and 45% of 2017 levels in 2030; in subsequent years, the targets are reduced by 2.25% of 2017 emission levels each year Fee ceases if emissions from covered fuels equal 10% of 2017 emission levels |
Establishes a trust fund that receives appropriations equal to emission fee revenues collected in the Treasury; monies in the trust fund (after administrative expenses) are allocated as follows: 70% to provide monthly payments to eligible individuals (i.e., persons with a Social Security number or taxpayer identification number); adults get one share and children receive a half-share; payments are phased-out at certain income levels 20% to support existing and new infrastructure funding programs and other objectives 5% to the Department of Energy to support development of GHG mitigation technology and related technologies 5% to support transition assistance through new and existing programs |
Directs the Department of Agriculture (in consultation with EPA) to provide payments for farmers and landowners for eligible sequestration activities; directs Department of Energy to provide payments for direct air capture of CO2 emissions; the funding source for these payments is not specified |
Imports of carbon-intensive products subject to a fee—determined by the Secretary of the Treasury—that is equivalent to the excess of (1) GHG emissions from production multiplied by the relevant U.S. emissions fee over (2) the total foreign product cost Exporters of carbon-intensive products (and covered fuels) may receive a refund under an analogous formula |
Separate fee for fluorinated GHGs set at 20% of fee for fossil fuel emissions |
|
Tax on fossil fuels based on their potential CO2 emissions; tax rate set in 2020 at $40/short ton of CO2, increasing annually by 2.5% plus inflation; if GHG emissions target is met, the rate increases only by inflation |
Tax imposed on manufacturers, producers, and importers of fossil fuels at first point of sale |
GHG emissions target of 80% below 2005 levels |
Net revenues from the tax on fossil fuels, imported products, and fluorinated GHGs support the following objectives: 10% used to increase monthly payments to Social Security beneficiaries 5% allocated to the Low-Income Home Energy Assistance program 1% allocated to the Department of Energy's weatherization assistance program After these allocations, remaining revenues used to reduce the payroll tax rates that apply to employees and the self-employed |
No specific provisions |
Tax applies to specific imported products based on the lesser of the fossil fuels used during production or the CO2 emissions attributable to their production; eligible products based on a list of domestic industries (prepared by EPA) that, "in the aggregate, account for 95% percent of the taxable carbon substances used in the United States" Exporters may receive a refund for fossil fuels and any other product with increased costs attributable to the new tax |
Separate tax for fluorinated GHGs (based on metric tons of CO2e) set at 10% of the tax rate for fossil fuel emissions Suspends enforcement of certain Clean Air Act GHG regulations; if EPA determines (in 2030 and every five years thereafter) that emission targets are not met, the enforcement suspension would cease and EPA must promulgate regulations to reduce emissions from covered fuels |
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Tax on fossil fuels based on their potential GHG emissions, GHG emissions from specific industrial sources, and GHG emissions from specific products Tax rate set in 2021 at $30/mtCO2e, increasing annually by 5% plus inflation; if covered emissions do not meet emission reduction schedule, the tax rate increases by an additional $3 |
Tax imposed on coal at coal mines and importers, petroleum products at refineries and importers, and natural gas at processors or at point of sale for combustion Tax imposed on facilities—in specific industrial source categories—that emit more than 25,000 mtCO2e per year Tax imposed on facilities that manufacture or import specified products or combust biomass with emissions above 25,000 mtCO2e |
Emission reduction schedule for covered emissions starts in 2021 at 5,000 mmtCO2e; the annual emission schedule is cumulative, reaching 49,000 mmtCO2e in 2031; assuming annual emission levels followed this decreasing schedule, covered emissions would decrease to 4,200 mmtCO2e in 2031 |
Tax revenue supports the following objectives: 52.5% to offset a reduction in payroll tax rates that apply to employees, employers, and self-employed persons 7.5% to provide a payment to Social Security beneficiaries 7.5% to provide block grants to states to offset higher energy costs for low-income households 7.5% to support climate adaptation, carbon sequestration, energy efficiency, and research and development programs |
No specific provisions |
Imports of carbon-intensive goods subject to a border tax—determined by the Secretary of the Treasury—that is equivalent to the costs in comparable domestic manufactured goods (associated with the carbon tax) Exporters of energy-intensive goods may receive a tax refund related to the increased costs of inputs (i.e., fossil fuels) subject to the tax |
Establishes a conditional moratorium on Clean Air Act GHG regulations for stationary emissions sources (with some exceptions) Creates a credit system, which phases out after five years, for persons making payments under existing state GHG reduction programs |
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Tax on fossil fuels based on their carbon content Tax set at $52/mtCO2 in 2020, increasing by 6% plus inflation each year |
Tax applies to manufacturers, producers, or importers of coal, petroleum, and natural gas |
No specific provisions |
Establishes a trust fund that would receive appropriations equal to tax revenue received in the Treasury; the trust fund would provide annual funding for the following infrastructure programs: $61 billion (plus the Highway Trust Fund shortfall) for highway (80%) and mass transit (20%); $6.4 billion for the Transportation Investments Generating Economic Recovery program; $4 billion for aviation; $6.6 billion for passenger rail; $8 billion for harbors, waterways, flood protection, and dams; $8.4 billion for wastewater and drinking water; $4 billion for broadband; $3 billion for education infrastructure; $1.5 billion for health care research and infrastructure; $2 billion for the Public Housing Capital Fund; $4.4 billion for Department of Energy research and development programs; and $1.5 billion for Department of Agriculture climate-related research In addition, the trust fund provides: $7 billion annually for worker and community transition assistance, and 12.5% for an energy refund program that would provide monthly payments to households with incomes up to 150% of poverty line Any remaining revenues support a consumer tax rebate for households with incomes up to 350% of the poverty line |
No specific provisions |
The Secretary of the Treasury shall impose a fee on imports of carbon-intensive goods; the fee will be equivalent to the cost that domestic producers incur due to the carbon tax; this fee expires if the exporting nation implements equivalent measures or if an international agreement requires equivalent measures |
No specific provisions |
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Tax on fossil fuels based on their potential GHG emissions, GHG emissions from specific industrial sources, and GHG emissions from specific products Tax rate set in 2021 at $35/mtCO2e, increasing annually by 5% plus inflation; if covered emissions do not meet emission reduction schedule, the tax rate increases by an additional $4 |
Tax imposed on coal at coal mines and importers, petroleum products at refineries and importers, and natural gas at processors or at point of sale for combustion Tax imposed on facilities—in specific industrial source categories—that emit more than 25,000 mtCO2e per year Tax imposed on facilities that manufacture or import specified products or combust biomass with emissions above 25,000 mtCO2e |
Emission reduction schedule for covered emissions starts in 2021 at 4,900 mmtCO2e; the annual emission schedule is cumulative, reaching 48,800 mmtCO2e in 2031; assuming annual emission levels followed this decreasing schedule, covered emissions would decrease to 4,000 mmtCO2e in 2031 |
Establishes a trust fund that would receive appropriations equal to 75% of the tax revenue received in the Treasury; the trust fund would provide annual funding for the following infrastructure programs ("as provided in appropriations acts") between FY2021 and FY2030: 70% to the Federal Highway Trust Fund; 10% to the states as grants to allocate to low-income households; 4.2% for various energy-related research and development objectives, including carbon capture and storage and battery technology; 4.0% for frequent and chronic coastal flooding mitigation and adaptation infrastructure projects; 3.0% for displaced energy workers; 2.5% for the Airport and Airway Trust Fund; 1.5% for the Department of Energy weatherization program; 1.5% for the Abandoned Mine Reclamation Fund; 1.0% for the Reforestation Trust Fund; 0.5% to support agricultural GHG sequestration projects; 0.1% to decrease the environmental impact of renewable energy activities pursuant to Section 931 of the Energy Policy Act of 2005; 0.1% for the Leaking Underground Storage Tank trust fund |
No specific provisions |
Imports of carbon-intensive goods subject to a border tax—determined by the Secretary of the Treasury—that is equivalent to the costs in comparable domestic manufactured goods (associated with the carbon tax) Exporters of energy-intensive goods may receive a tax refund related to the increased costs of inputs (i.e., fossil fuels) subject to the tax |
Establishes a conditional moratorium on Clean Air Act GHG regulations for stationary emissions sources (with some exceptions) Creates a credit system, which phases out after five years, for persons making payments under existing state GHG reduction programs Creates a National Climate Commission to set five-year emission reduction goals between 2025 and 2050 and assess the effectiveness of federal policies in meeting these goals |
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Tax on fossil fuels based on their carbon content Tax rate starts in 2020 at $40 per ton of carbon, which equates to approximately $11/tCO2 emissions; tax rate increases annually by a cost of living adjustment as defined in the bill |
Tax imposed at coal mines and oil and gas wells and on fuels "entered into the United States" |
No specific provision |
Provides a $1,000 income tax credit for individuals and each of their dependents; tax credit phases out at adjusted gross income levels exceeding $314,000; tax credit and income phase-out level increases each year by a cost of living adjustment |
No specific provisions |
No specific provisions |
No specific provisions |
Source: Prepared by CRS.
Author Contact Information
Footnotes
| 1. |
GHGs in the atmosphere trap radiation as heat, warming the Earth's surface and oceans. The primary GHGs emitted 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 include carbonaceous and sulfuric aerosols, hydrochlorofluorocarbons, and elevated tropospheric ozone pollution generated by emissions of nitrogen oxides and volatile organic compounds, such as solvents. |
| 2. |
For the latest U.S. assessment of the human contribution to climate change, see Intergovernmental Panel on Climate Change, Global Warming of 1.5°C, Special Report, 2018; and U.S. Global Change Research Program, Fourth National Climate Assessment, vol. II: Impacts, Risks, and Adaptation in the United States, 2018. See also CRS Report R45086, Evolving Assessments of Human and Natural Contributions to Climate Change, by Jane A. Leggett. |
| 3. |
Some countries have levied carbon taxes (or something similar) for over 20 years. For a review of carbon prices in other countries, see OECD, Effective Carbon Rates: Pricing CO2 through Taxes and Emissions Trading Systems, 2016, http://www.oecd-ilibrary.org/taxation/effective-carbon-rates_9789264260115-en; and the Carbon Tax 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. The most aggressive actions have come from California and from the Regional Greenhouse Gas Initiative (RGGI)—a coalition of nine states from the Northeast and Mid-Atlantic regions. The RGGI is a cap-and-trade system that took effect in 2009 that applies to CO2 emissions from electric power plants. (See CRS Report R41836, The Regional Greenhouse Gas Initiative: Background, Impacts, and Selected Issues, by Jonathan L. Ramseur.) California established a cap-and-trade program that took effect in 2013. California's cap covers multiple GHGs, which account for approximately 85% of California's GHG emissions. For more details, see the California Air Resources Board website, 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 policies (e.g., renewable energy portfolio standards). |
| 5. |
Other approaches may include performance-based or technology-based standards (e.g., best available control technology). See CRS Report R41973, Climate Change: Conceptual Approaches and Policy Tools, by Jane A. Leggett. |
| 6. |
The 1990 Clean Air Act Amendments established a market-based cap-and-trade program to control the air emissions (sulfur dioxide and nitrogen oxides) that lead to acid rain. Although controversial at its inception, the program is widely considered a success. See, for example, Gabriel Chan et al., The SO2 Allowance Trading System and the Clean Air Act Amendments of 1990: Reflections on Twenty Years of Policy Innovation, Harvard Environmental Economics Program, 2012, https://www.belfercenter.org/sites/default/files/legacy/files/so2-brief_digital4_final.pdf. |
| 7. |
See CRS In Focus IF10479, The Energy Credit: An Investment Tax Credit for Renewable Energy, by Molly F. Sherlock. |
| 8. |
See CRS Report R44902, Carbon Capture and Sequestration (CCS) in the United States, by Peter Folger. |
| 9. |
The House passed an identical resolution in the 114th Congress (H.Con.Res. 89). |
| 10. |
See CRS Report R40556, Market-Based Greenhouse Gas Control: Selected Proposals in the 111th Congress, by Larry Parker, Brent D. Yacobucci, and Jonathan L. Ramseur. |
| 11. |
H.R. 2454 (111th Congress), which was introduced by Representatives Waxman and Markey, would have covered approximately 85% of the U.S. GHG emissions. Although not complete coverage, this approach is typically described as economy-wide. |
| 12. |
See CRS Report R45204, Vehicle Fuel Economy and Greenhouse Gas Standards: Frequently Asked Questions, by Richard K. Lattanzio, Linda Tsang, and Bill Canis. |
| 13. |
For more details, see CRS Report R44341, EPA's Clean Power Plan for Existing Power Plants: Frequently Asked Questions, by James E. McCarthy et al. |
| 14. |
For more details, see CRS Insight IN11142, EPA Repeals the Clean Power Plan and Finalizes Affordable Clean Energy Rule, by Kate C. Shouse and CRS Report R45393, EPA's Affordable Clean Energy Proposal, by Kate C. Shouse, Jonathan L. Ramseur, and Linda Tsang. |
| 15. |
In some instances, legislation would have directed EPA to establish a GHG emissions reduction program with a market-based approach as one option. An alternative approach to a market-based system might involve regulatory directives that require emission performance standards for specific sources or the application of best available control technology. |
| 16. |
A metric ton is approximately 2,205 pounds. A short ton equals 2,000 pounds. |
| 17. |
This term of measure (CO2e) is used because GHGs vary by global warming potential (GWP). GWP is an index developed by the Intergovernmental Panel on Climate Change (IPCC) that allows comparisons of the heat-trapping ability of different gases over a period of time, typically 100 years. Consistent with international GHG reporting requirements, EPA's most recent GHG inventory (2018) uses the GWP values presented in the IPCC's 2007 Fourth Assessment Report. For example, based on these GWP values, a ton of methane is 25 times more potent than a ton of CO2 when averaged over a 100-year time frame. The 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 100-year GWP for methane as ranging from 28 to 36. EPA compares the 100-year GWP values in Table 1-3 of its 2018 GHG Inventory. |
| 18. |
Both the RGGI and California cap-and-trade systems allow offsets as a compliance option (see footnote 4). |
| 19. |
This differs from a price system that applies to energy content, such as a tax based on British thermal units (Btu). In 1993, President Clinton proposed a deficit reduction package that included a tax based on energy content, measured in Btu. The goals of the 1993 Btu tax proposal were to promote energy conservation and raise revenue. At the time, the proposed tax would have generated a new revenue stream of about $30 billion per year. The proposal was met with strong opposition and was not enacted; Congress ultimately enacted an approximately five-cent-per-gallon increase in the motor fuels taxes. |
| 20. |
See, for example, Alexander R. Barron et al., "Policy Insights from the EMF 32 Study on U.S. Carbon Tax Scenarios," Climate Change Economics, vol. 9, no. 1 (2018). |
| 21. |
EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2017, April 2019. |
| 22. |
See Table A-1 in CRS Report R45625, Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax or Emissions Fee: Considerations and Potential Impacts, by Jonathan L. Ramseur and Jane A. Leggett. |
| 23. |
Congressional Budget Office, Options for Reducing the Deficit: 2017-2026, 2016. |
| 24. |
One GHG emission reduction bill was introduced in the 107th Congress. Senator Jeffords introduced S. 556, which would have amended the Clean Air Act to reduce CO2 emissions from electric power plants to below 1990 levels. |