Market-Based Greenhouse Gas Emission Reduction Legislation: 108th Through 118th Congresses

Changes from May 6, 2021 to September 3, 2021

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Market-Based Greenhouse Gas Emission
~~May 6~~September 3, 2021 , 2021
Reduction Legislation: 108th Through 117th
Jonathan L. Ramseur
Congresses
Specialist in Environmental Specialist in Environmental
Policy Policy
Congressional interest in market-based greenhouse gas (GHG) emission control legislation has Congressional interest in market-based greenhouse gas (GHG) emission control legislation has

fluctuated over the past 20 years. Market-based approaches that would address GHG emissions fluctuated over the past 20 years. Market-based approaches that would address GHG emissions
typically involve either a cap-and-trade system or a carbon tax or emissions fee program. Both typically involve either a cap-and-trade system or a carbon tax or emissions fee program. Both

approaches would place a price—directly or indirectly—on GHG emissions or their inputs, 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. namely fossil fuels. Both would increase the price of fossil fuels, and both would reduce GHG emissions to some degree.
Both would allow covered entities to choose the best way to meet their emission requirements or reduce costs, potentially by Both would allow covered entities to choose the best way to meet their emission requirements or reduce costs, potentially by
using market forces to minimize national costs of emission reductions. Preference between the two approaches ultimately using market forces to minimize national costs of emission reductions. Preference between the two approaches ultimately
depends on which variable policymakers prefer to precisely control—emission levels or emission prices. depends on which variable policymakers prefer to precisely control—emission levels or emission prices.
A primary policy concern with either approach is the economic impacts that may result. Expected energy price increases A primary policy concern with either approach is the economic impacts that may result. Expected energy price increases
could have both economy-wide impacts (e.g., on the U.S. gross domestic product) and disproportionate effects on specific could have both economy-wide impacts (e.g., on the U.S. gross domestic product) and disproportionate effects on specific
industries and particular demographic groups. The degree of these potential effects would depend on a number of factors, industries and particular demographic groups. The degree of these potential effects would depend on a number of factors,
including the magnitude, design, and scope of the program and the use of tax or fee revenues or emission allowance values. including the magnitude, design, and scope of the program and the use of tax or fee revenues or emission allowance values.
As the figure below illustrates, between the 108th and 111th Congresses, most of the introduced bills would have established As the figure below illustrates, between the 108th and 111th Congresses, most of the introduced bills would have established
cap-and-trade systems. Between the 112th and 117th Congresses, most of the introduced bills would have established carbon cap-and-trade systems. Between the 112th and 117th Congresses, most of the introduced bills would have established carbon
tax or emissions fee programs. The proposals ranged in the scope of emissions covered from CO2 emissions from fossil fuel tax or emissions fee programs. The proposals ranged in the scope of emissions covered from CO2 emissions from fossil fuel
combustion to multiple GHG emissions from a broader array of sources. In addition, the proposals differed by how, to whom, combustion to multiple GHG emissions from a broader array of sources. In addition, the proposals differed by how, to whom,
and for what purpose the fee revenues or allowance value would be applied. Some economic analyses indicate that policy 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 choices to distribute the tax, fee, or emission allowance revenue would yield greater economic impacts than the direct
impacts of the carbon price. impacts of the carbon price.
Number and Type of Introduced GHG Emission Reduction Bills
108th Congress through 117th Congress 108th Congress through 117th Congress

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

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Introduction
Human activities, particularly fossil fuel combustion and industrial operations, have raised the Human activities, particularly fossil fuel combustion and industrial operations, have raised the
atmospheric concentration of carbon dioxide (CO2) and other greenhouse gases (GHGs) since the atmospheric concentration of carbon dioxide (CO2) and other greenhouse gases (GHGs) since the
late 1700s—for example, CO2 has increased by over 40%.1 Almost all climate scientists agree late 1700s—for example, CO2 has increased by over 40%.1 Almost all climate scientists agree
that these GHG increases have contributed to a warmer climate today and that, if they continue, that these GHG increases have contributed to a warmer climate today and that, if they continue,
they will contribute to future climate change.2 Although a range of actions that seek to reduce they will contribute to future climate change.2 Although a range of actions that seek to reduce
GHG emissions are currently under way or being developed on the international3 and subnational GHG emissions are currently under way or being developed on the international3 and subnational
level (e.g., individual state actions or regional partnerships),4 federal policymakers and level (e.g., individual state actions or regional partnerships),4 federal policymakers and
stakeholders have different viewpoints over what, if anything, to do about future climate change stakeholders have different viewpoints over what, if anything, to do about future climate change
and related impacts. and related impacts.
Congressional interest in GHG emission control legislation has fluctuated over the last 20 years. Congressional interest in GHG emission control legislation has fluctuated over the last 20 years.
A number of proposals to limit GHG emissions have focused on market-based approaches, such A number of proposals to limit GHG emissions have 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 as a GHG emission cap-and-trade program or a GHG emissions tax (often referred to as a carbon
tax) or fee. In general, a market-based approach would place a price on GHG emissions (e.g., tax) or fee. In general, a market-based approach would place a price on GHG emissions (e.g.,
through an emissions cap or emission tax or fee), allowing covered entities to determine their through an emissions cap or emission tax or fee), allowing covered entities to determine their
pathway of compliance.5 This report focuses on these types of approaches to address GHG pathway of compliance.5 This report focuses on these types of approaches to address GHG
emissions. emissions.
Other approaches include a range of policy options, including performance-based or technology- Other approaches include a range of policy options, including performance-based or technology-
based standards (e.g., best available control technology), public investment in research and based standards (e.g., best available control technology), public investment in research and
development, and tax policies.6 Although not discussed in this report, Members have introduced development, and tax policies.6 Although not discussed in this report, Members have introduced
multiple, nonmarket-based proposals that would have likely resulted in reductions in GHG multiple, nonmarket-based proposals that would have likely resulted in reductions in GHG
emissions. Several of these proposals were enacted, including tax incentives to promote emissions. Several of these proposals were enacted, including tax incentives to promote

1 U.S. EPA, “EPA’s Climate Change Indicators in the United States,” https://www.epa.gov/climate-indicators/climate-1 U.S. EPA, “EPA’s Climate Change Indicators in the United States,” https://www.epa.gov/climate-indicators/climate-
change-indicators-atmospheric-concentrations-greenhouse-gases. change-indicators-atmospheric-concentrations-greenhouse-gases.
2 For the latest U.S. assessment of the human contribution to climate change, see Intergovernmental Panel on Climate 2 For the latest U.S. assessment of the human contribution to climate change, see Intergovernmental Panel on Climate
Change, Change, Global Warming of 1.5°C, Special Report, 2018; and U.S. Global Change Research Program, , 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, , 2018. See also CRS Report R45086,
Evolving Assessments of Human and Natural Contributions to Climate Change, by Jane A. Leggett. , 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 3 Some countries have levied carbon taxes (or something similar) for over 20 years. For a review of carbon prices in
other countries, see World Bank, other countries, see World Bank, State and Trends of Carbon Pricing 2020, https://openknowledge.worldbank.org/https://openknowledge.worldbank.org/
handle/10986/33809handle/10986/33809. The European Union established a cap-and-trade program in 2005 and covers emissions from the The European Union established a cap-and-trade program in 2005 and covers emissions from the
electricity sector, selected energy-intensive industries, and aviation. See, for example, Climate Action Tracker, electricity sector, selected energy-intensive industries, and aviation. See, for example, Climate Action Tracker,
https://climateactiontracker.org; and Climate Watch, https://www.climatewatchdata.org/. https://climateactiontracker.org; and Climate Watch, https://www.climatewatchdata.org/.
4 A number of U.S. states have taken action requiring GHG emission reductions. The most aggressive actions have 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 11 states from the come from California and from the Regional Greenhouse Gas Initiative (RGGI)—a coalition of 11 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 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, 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 , 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. 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/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 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). policies (e.g., renewable energy portfolio standards).
5 The 1990 Clean Air Act Amendments established a market-based cap-and-trade program to control the air emissions 5 The 1990 Clean Air Act Amendments established a market-based cap-and-trade program to control the air emissions
(sulfur dioxide and nitrogen oxides) that lead to acid rain. Although controversial at its inception, the program is widely (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., 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, , Harvard Environmental Economics Program,
2012, https://www.belfercenter.org/sites/default/files/legacy/files/so2-brief_digital4_final.pdf. 2012, https://www.belfercenter.org/sites/default/files/legacy/files/so2-brief_digital4_final.pdf.
6 See CRS In Focus IF11791, 6 See CRS In Focus IF11791, Mitigating Greenhouse Gas Emissions: Selected Policy Options, by Jonathan L. Ramseur , by Jonathan L. Ramseur
et al.; CRS Report R41973, et al.; CRS Report R41973, Climate Change: Conceptual Approaches and Policy Tools, by Jane A. Leggett. , by Jane A. Leggett.
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renewable energy sources7 and carbon capture and sequestration efforts.8 In addition, Congress renewable energy sources7 and carbon capture and sequestration efforts.8 In addition, Congress
enacted the American Innovation and Manufacturing (AIM) Act of 2020 to phase down enacted the American Innovation and Manufacturing (AIM) Act of 2020 to phase down
hydrofluorocarbons, potent GHGs used in air conditioning and refrigeration equipment.9 hydrofluorocarbons, potent GHGs used in air conditioning and refrigeration equipment.9
Members of Congress have expressed a range of perspectives regarding climate change issues. Members of Congress have expressed a range of perspectives regarding climate change issues.
For example, between the 112th Congress and going through the 115th Congress, Members For example, between the 112th Congress and going through the 115th Congress, Members
introduced resolutions in both the House and Senate expressing the view that a carbon tax is not introduced resolutions in both the House and Senate expressing the view that a carbon tax is not
in the economic interests of the United States. In 2014 and 2018, the House passed resolutions in the economic interests of the United States. In 2014 and 2018, the House passed resolutions
“expressing the sense of Congress that a carbon tax would be detrimental to the United States “expressing the sense of Congress that a carbon tax would be detrimental to the United States
economy” (H.Con.Res. 89 and H.Con.Res. 119, respectively). In the 117th Congress, during economy” (H.Con.Res. 89 and H.Con.Res. 119, respectively). In the 117th Congress, during
debate on S.Con.Res. 5, the Senate voted (50-50) on S.Amdt. 887, which would “establish a debate on S.Con.Res. 5, the Senate voted (50-50) on S.Amdt. 887, which would “establish a
deficit-neutral reserve fund relating to prohibiting a Federal carbon tax.” deficit-neutral reserve fund relating to prohibiting a Federal carbon tax.”
This report provides a comparison of the legislative proposals from the 108th through the 117th This report provides a comparison of the legislative proposals from the 108th through the 117th
Congresses that were and are designed primarily to reduce GHG emissions using market-based 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. Asapproaches such as cap-and-trade or carbon tax/fee programs. As Figure 1 illustrates, between the illustrates, between the
108th and 111th Congresses, most of the market-based climate mitigation bills would have 108th and 111th Congresses, most of the market-based climate mitigation bills would have
established cap-and-trade systems. Between the 112th and 117th Congresses, most of the established cap-and-trade systems. Between the 112th and 117th Congresses, most of the
introduced bills would have established carbon tax or emissions fee programs. introduced bills would have established carbon tax or emissions fee programs.
In the 111th Congress, Members offered multiple and varied proposals,10 ultimately resulting in In the 111th Congress, Members offered multiple and varied proposals,10 ultimately resulting in
the House passage of H.R. 2454, an economy-wide cap-and-trade bill.11 A companion bill in the the House passage of H.R. 2454, an economy-wide cap-and-trade bill.11 A companion bill in the
Senate (S. 1733) was ordered reported from the Committee on Environment and Public Works, Senate (S. 1733) was ordered reported from the Committee on Environment and Public Works,
but the bill was never brought to the Senate floor for consideration. but the bill was never brought to the Senate floor for consideration.
In subsequent Congresses, some Members continued to offer GHG emission control legislation, In subsequent Congresses, some Members continued to offer GHG emission control legislation,
but these proposals saw minimal legislative activity. During that time frame, the U.S. 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 Environmental Protection Agency (EPA) used existing Clean Air Act authorities to promulgate
GHG emission standards for key sectors, including the electric power and transportation sectors.12 GHG emission standards for key sectors, including the electric power and transportation sectors.12
Key EPA rulemakings in the electric power sector include the Obama Administration’s 2015 Key EPA rulemakings in the electric power sector include the Obama Administration’s 2015
Clean Power Plan (CPP) final rule13 and the Trump Administration’s 2019 Affordable Clean Clean Power Plan (CPP) final rule13 and the Trump Administration’s 2019 Affordable Clean
Energy (ACE) final rule,14 which repealed and replaced the CPP. In January 2021, a federal Energy (ACE) final rule,14 which repealed and replaced the CPP. In January 2021, a federal
appellate court vacated and remanded the ACE rule.15 The court also vacated the CPP repeal but appellate court vacated and remanded the ACE rule.15 The court also vacated the CPP repeal but

7 See CRS In Focus IF11316, 7 See CRS In Focus IF11316, A Brief History of U.S. Electricity Portfolio Standard Proposals, by Ashley J. Lawson; , by Ashley J. Lawson;
and CRS In Focus IF10479, and CRS In Focus IF10479, The Energy Credit or Energy Investment Tax Credit (ITC), by Molly F. Sherlock. , by Molly F. Sherlock.
8 See CRS Report R44902, 8 See CRS Report R44902, Carbon Capture and Sequestration (CCS) in the United States, by Peter Folger. , by Peter Folger.
9 P.L. 116-260, Division S, §103, enacted December 27, 2020. See CRS In Focus IF11779, 9 P.L. 116-260, Division S, §103, enacted December 27, 2020. See CRS In Focus IF11779, Hydrofluorocarbon
Phasedown: Issues for Congress, by Kate C. Shouse. , by Kate C. Shouse.
10 See CRS Report R40556, 10 See CRS Report R40556, Market-Based Greenhouse Gas Control: Selected Proposals in the 111th Congress, by , by
Larry Parker, Brent D. Yacobucci, and Jonathan L. Ramseur. Larry Parker, Brent D. Yacobucci, and Jonathan L. Ramseur.
11 H.R. 2454 (111th Congress), which was introduced by Reps. Waxman and Markey, would have covered 11 H.R. 2454 (111th Congress), which was introduced by Reps. Waxman and Markey, would have covered
approximately 85% of the U.S. GHG emissions. Although not complete coverage, this approach is typically described approximately 85% of the U.S. GHG emissions. Although not complete coverage, this approach is typically described
as economy-wide. as economy-wide.
12 See CRS Report R45204, 12 See CRS Report R45204, Vehicle Fuel Economy and Greenhouse Gas Standards: Frequently Asked Questions, by , by
Richard K. Lattanzio, Linda Tsang, and Bill Canis. Richard K. Lattanzio, Linda Tsang, and Bill Canis.
13 For more details, see CRS Report R44341, 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. , by James E. McCarthy et al.
14 For more details, see CRS Report R46482, 14 For more details, see CRS Report R46482, EPA’s Affordable Clean Energy Rule and Related Issues: Frequently
Asked Questions, coordinated by Kate C. Shouse. , coordinated by Kate C. Shouse.
15 See Am. Lung Ass'n. v. EPA, No. 19-1140 (D.C. Cir. Jan.. 19, 2021), https://www.cadc.uscourts.gov/internet/ 15 See Am. Lung Ass'n. v. EPA, No. 19-1140 (D.C. Cir. Jan.. 19, 2021), https://www.cadc.uscourts.gov/internet/
opinions.nsf/6356486C5963F49185258662005677F6/$file/19-1140.correctedopinion.pdf. opinions.nsf/6356486C5963F49185258662005677F6/$file/19-1140.correctedopinion.pdf.
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stayed its mandate until the EPA responds to the court’s remand in a new rulemaking action.16 stayed its mandate until the EPA responds to the court’s remand in a new rulemaking action.16
Subsequent executive action from the Biden Administration in this setting will likely continue to Subsequent executive action from the Biden Administration in this setting will likely continue to
generate interest and debate in Congress. generate interest and debate in Congress.
The proposals in the 117th Congress range in their scope of emissions covered from CO2 The proposals in the 117th Congress range in their scope of emissions covered from CO2
emissions from fossil fuel combustion to multiple GHG emissions from a broader array of emissions from fossil fuel combustion to multiple GHG emissions from a broader array of
sources. In addition, the proposals differ by how, to whom, and for what purpose the fee revenues 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 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 distribute the tax, fee, or emission allowance revenue would yield greater economic impacts than
the direct impacts of the carbon price.17 the direct impacts of the carbon price.17
The first section of this report provides background information on cap-and-trade and carbon tax 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 or emission fee programs. The second section compares the GHG emission reduction legislation
in each Congress (108th-117th). in each Congress (108th-117th).
Figure 1. Number and Type of Market-Based GHG Emission Reduction Bills
Introduced in 108th Congress Through 117th Congress

Source: Prepared by CRS. Prepared by CRS.
Notes: “Other Approaches” include (1) proposals that did not specify the overall framework but would have “Other Approaches” include (1) proposals that did not specify the overall framework but would have
provided EPA with the authority to establish a GHG emission reduction program and (2) proposals that combine provided EPA with the authority to establish a GHG emission reduction program and (2) proposals that combine
elements from a cap-and-trade system with price control features in a carbon tax or emissions fee system, elements from a cap-and-trade system with price control features in a carbon tax or emissions fee system,
sometimes described as hybrid approaches. sometimes described as hybrid approaches.
Background
Over the last 15 years, broad GHG emission reduction legislation has generally involved market-Over the last 15 years, broad GHG emission reduction legislation has generally involved market-
based approaches—such as cap-and-trade systems or carbon tax programs—that rely on private-based approaches—such as cap-and-trade systems or carbon tax programs—that rely on private-
sector choices and market forces to minimize the costs of emission reductions and spur sector choices and market forces to minimize the costs of emission reductions and spur
innovation.18 Both carbon tax and emissions cap-and-trade programs would place a price—innovation.18 Both carbon tax and emissions cap-and-trade programs would place a price—

16 See CRS Insight IN11633, 16 See CRS Insight IN11633, Clean Air Act: Electricity Sector and Greenhouse Gas Standards, by Kate C. Shouse. , by Kate C. Shouse.
17 For more information, see CRS Report R45625, 17 For more information, see CRS Report R45625, Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax
or Emissions Fee: Considerations and Potential Impacts, by Jonathan L. Ramseur and Jane A. Leggett. , by Jonathan L. Ramseur and Jane A. Leggett.
18 In some instances, legislation would have directed EPA to establish a GHG emissions reduction program with a 18 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~~
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directly or indirectly—on GHG emissions or their inputs (e.g., fossil fuels), both would increase directly or indirectly—on GHG emissions or their inputs (e.g., fossil fuels), both would increase
the price of fossil fuels for the consumer, and both would reduce GHG emissions to some degree. the price of fossil fuels for the consumer, and both would reduce GHG emissions to some degree.
Preference between the two approaches ultimately depends on which variable policymakers Preference between the two approaches ultimately depends on which variable policymakers
prefer to precisely control: emission levels or emission prices. As a practical matter, these market-prefer to precisely control: emission levels or emission prices. As a practical matter, these market-
based policies may include complementary or hybrid designs, incorporating elements to increase based policies may include complementary or hybrid designs, incorporating elements to increase
certainty in price or emissions quantity. For example, legislation could provide mechanisms for certainty in price or emissions quantity. For example, legislation could provide mechanisms for
adjusting a carbon tax/fee if a targeted range of emissions reductions were not achieved in a given adjusting a carbon tax/fee if a targeted range of emissions reductions were not achieved in a given
period. Alternatively, legislation could include mechanisms that would bound the range of market period. Alternatively, legislation could include mechanisms that would bound the range of market
prices for a cap-and-trade system’s emissions allowances to improve price certainty. prices for a cap-and-trade system’s emissions allowances to improve price certainty.
What Is a GHG Emissions Cap-and-Trade System?
A GHG cap-and-trade system creates an overall limit, or cap, on GHG emissions from certain A GHG cap-and-trade system creates an overall limit, or cap, on GHG emissions from certain
sources. Cap-and-trade programs can vary by the sources covered, which often include major sources. Cap-and-trade programs can vary by the sources covered, which often include major
emitting sectors (e.g., power plants and carbon-intensive industries), fuel producers and/or emitting sectors (e.g., power plants and carbon-intensive industries), fuel producers and/or
processors (e.g., coal mines or petroleum refineries), or some combination of both. processors (e.g., coal mines or petroleum refineries), or some combination of both.
The emissions cap is partitioned into The emissions cap is partitioned into emission allowances. Typically, in a GHG cap-and-trade . Typically, in a GHG cap-and-trade
system, one emission allowance represents the authority to emit one metric ton19 of carbon system, one emission allowance represents the authority to emit one metric ton19 of carbon
dioxide-equivalent (mtCO2e).20 The emissions cap creates a new commodity—the emission dioxide-equivalent (mtCO2e).20 The emissions cap creates a new commodity—the emission
allowance. Policymakers may decide to distribute the emission allowances to covered entities at allowance. Policymakers may decide to distribute the emission allowances to covered entities at
no cost (based on, for example, previous years’ emissions), sell the allowances (e.g., through an no cost (based on, for example, previous years’ emissions), sell the allowances (e.g., through an
auction), or use some combination of these strategies. The distribution of emission allowances is auction), or use some combination of these strategies. The distribution of emission allowances is
typically a source of significant debate during a cap-and-trade program’s development, because typically a source of significant debate during a cap-and-trade program’s development, because
the allowances have monetary value. the allowances have monetary value.
At the end of each established compliance period (e.g., a calendar year or multiple years), At the end of each established compliance period (e.g., a calendar year or multiple years),
covered sources submit emission allowances to an implementing agency to cover the number of covered sources submit emission allowances to an implementing agency to cover the number of
tons emitted. If a source did not provide enough allowances to cover its emissions, the source tons emitted. If a source did not provide enough allowances to cover its emissions, the source
would be subject to penalties. Covered sources would have a financial incentive to make would be subject to penalties. Covered sources would have a financial incentive to make
reductions beyond what is required, because they could (1) sell or trade unused emission reductions beyond what is required, because they could (1) sell or trade unused emission
allowances to entities that face higher costs to reduce their facility emissions, (2) reduce the allowances to entities that face higher costs to reduce their facility emissions, (2) reduce the
number of emission allowance they need to purchase, or (3) bank them, if allowed, to use in a number of emission allowance they need to purchase, or (3) bank them, if allowed, to use in a
future year. future year.
The use of emission offsets as a compliance option received attention during debate over cap-and- The use of emission offsets as a compliance option received attention during debate over cap-and-
trade programs. An offset is a measurable reduction, avoidance, or sequestration of GHG trade programs. An offset is a measurable reduction, avoidance, or sequestration of GHG
emissions from a source not covered by an emission reduction program. Economic analyses of emissions from a source not covered by an emission reduction program. Economic analyses of
cap-and-trade proposals concluded that offset treatment (i.e., whether or not to allow their use cap-and-trade proposals concluded that offset treatment (i.e., whether or not to allow their use
~~and, if so, to what degree) would have a substantial impact on overall program cost. This is~~

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 directives that require emission performance standards for specific sources or the application of best available control
technology. technology.
19 A metric ton is approximately 2,205 pounds. A short ton equals 2,000 pounds. 19 A metric ton is approximately 2,205 pounds. A short ton equals 2,000 pounds.
20 This term of measure (CO2e) is used because GHGs vary by global warming potential (GWP). GWP is an index 20 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 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 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 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 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 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 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. methane as ranging from 28 to 36. EPA compares the 100-year GWP values in Table 1-3 of its 2018 GHG Inventory.
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link to page 5 link to page 5 Market-Based Greenhouse Gas Emission Reduction Legislation

and, if so, to what degree) would have a substantial impact on overall program cost. This is because some emissions and sources often not covered in cap-and-trade programs can reduce because some emissions and sources often not covered in cap-and-trade programs can reduce
emissions at a lower cost per ton than many typically covered sources. However, the use of emissions at a lower cost per ton than many typically covered sources. However, the use of
offsets generates considerable controversy, primarily over the concern that difficult-to-assess or offsets generates considerable controversy, primarily over the concern that difficult-to-assess or
fraudulent offsets could create uncertainty about the quantity of emission reductions.21 fraudulent offsets could create uncertainty about the quantity of emission reductions.21
In addition, other mechanisms—such as allowance banking or borrowing—may be included to In addition, other mechanisms—such as allowance banking or borrowing—may be included to
increase the flexibility of the program and, generally, reduce the costs. increase the flexibility of the program and, generally, reduce the costs.
What Is a Carbon Tax or Emissions Fee?
In a carbon tax or emissions fee program, policymakers attach a price to GHG emissions or the 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—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 would increase the relative price of the more carbon-intensive energy sources. This result is
expected to spur innovation in less carbon-intensive technologies and stimulate other behavior expected to spur innovation in less carbon-intensive technologies and stimulate other behavior
that may decrease emissions.22 that may decrease emissions.22
Economic modeling indicates that a carbon tax/fee approach could achieve emission reductions, Economic modeling indicates that a carbon tax/fee approach could achieve emission reductions,
the level of which would depend on the scope and stringency (i.e., tax or fee level) of the the level of which would depend on the scope and stringency (i.e., tax or fee level) of the
program.23 For example, to address emissions from fossil fuel combustion—76% of total U.S. program.23 For example, to address emissions from fossil fuel combustion—76% of total U.S.
GHG emissions24—policymakers could apply a tax/fee to fossil fuels at approximately 3,000 GHG emissions24—policymakers could apply a tax/fee to fossil fuels at approximately 3,000
entities, including coal mines, petroleum refineries, and entities required to report natural gas entities, including coal mines, petroleum refineries, and entities required to report natural gas
deliveries.25 deliveries.25
A carbon tax/fee would generate a new revenue stream. The magnitude of the revenues would A carbon tax/fee would generate a new revenue stream. The magnitude of the revenues would
depend on the scope and rate of the tax or fee, the responsiveness of covered entities in reducing depend on the scope and rate of the tax or fee, the responsiveness of covered entities in reducing
their potential emissions, and multiple other market factors. A 2016 Congressional Budget Office their potential emissions, and multiple other market factors. A 2016 Congressional Budget Office
study estimated that a $25/ton carbon tax would yield approximately $100 billion in the first year study estimated that a $25/ton carbon tax would yield approximately $100 billion in the first year
of the program.26 of the program.26
When designing a carbon tax/fee system, one of the more controversial and challenging questions When designing a carbon tax/fee system, one of the more controversial and challenging questions
for policymakers is how, to whom, and for what purpose the new tax or fee revenues could be for policymakers is how, to whom, and for what purpose the new tax or fee revenues could be
applied. Congress would face the same issues that would be encountered during a debate over applied. Congress would face the same issues that would be encountered during a debate over
emission allowance value distribution in a cap-and-trade system. emission allowance value distribution in a cap-and-trade system.
When deciding how to allocate the revenues, policymakers would encounter trade-offs among When deciding how to allocate the revenues, policymakers would encounter trade-offs among
objectives. The central trade-offs involve minimizing economy-wide costs, lessening the costs objectives. The central trade-offs involve minimizing economy-wide costs, lessening the costs
borne by specific groups—particularly low-income households and displaced workers or borne by specific groups—particularly low-income households and displaced workers or
communities—and supporting a range of specific policy objectives. communities—and supporting a range of specific policy objectives.

21 Both the RGGI and California cap-and-trade systems allow offsets as a compliance option (see 21 Both the RGGI and California cap-and-trade systems allow offsets as a compliance option (see ~~footno~~tefootnot e 4). ~~4).~~
22 This differs from a price system that applies to energy content, such as a tax based on British thermal units (Btu). In 22 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 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 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 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 strong opposition and was not enacted; Congress ultimately enacted an approximately five-cent-per-gallon increase in
the motor fuels taxes. the motor fuels taxes.
23 See, for example, Alexander R. Barron et al., “Policy Insights from the EMF 32 Study on U.S. Carbon Tax 23 See, for example, Alexander R. Barron et al., “Policy Insights from the EMF 32 Study on U.S. Carbon Tax
Scenarios,” Scenarios,” Climate Change Economics, vol. 9, no. 1 (2018). , vol. 9, no. 1 (2018).
24 EPA, 24 EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2017, April 2019. , April 2019.
25 See Table A-1 in CRS Report R45625, 25 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. , by Jonathan L. Ramseur and Jane A. Leggett.
26 Congressional Budget Office, 26 Congressional Budget Office, Options for Reducing the Deficit: 2017-2026, 2016. , 2016.
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Market-Based Greenhouse Gas Emission Reduction Legislation

A primary argument against a carbon tax/fee system (and a cap-and-trade program) is the concern A primary argument against a carbon tax/fee system (and a cap-and-trade program) is the concern
about the economy-wide costs that a carbon price could impose. The potential costs would about the economy-wide costs that a carbon price could impose. The potential costs would
depend on a number of factors, including the magnitude, design, and use of revenues of the depend on a number of factors, including the magnitude, design, and use of revenues of the
carbon tax or fee. carbon tax or fee.
Others who may oppose a carbon tax system express opposition to federal taxes in general or the Others who may oppose a carbon tax system express opposition to federal taxes in general or the
possibility that the revenues would enable greater federal spending. Owners of coal resources, in possibility that the revenues would enable greater federal spending. Owners of coal resources, in
particular, would likely lose asset values under a carbon tax system—as under a cap-and-trade 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. system—to the degree that coal becomes less competitive under the costs of emission reductions.
GHG Emission Reduction Legislation by Congress
This section compares GHG emission reduction legislation from the 108th Congress to the 116th This section compares GHG emission reduction legislation from the 108th Congress to the 116th
Congress by including a separate legislative table for each Congress.27 The tables compare the Congress by including a separate legislative table for each Congress.27 The tables compare the
bills by their overall framework, scope, stringency, and selected design elements. Categories of bills by their overall framework, scope, stringency, and selected design elements. Categories of
comparison include the following: comparison include the following:
  General framework: the proposed program structure—emissions cap, emissions the proposed program structure—emissions cap, emissions
tax or fee, or some combination of both—and scope in terms of emissions tax or fee, or some combination of both—and scope in terms of emissions
covered (multiple GHG emissions or just CO2 emissions). covered (multiple GHG emissions or just CO2 emissions).
  Covered entities/materials: the industries, sectors, or materials that would be the industries, sectors, or materials that would be
subject to the program. subject to the program.
  Emissions limit or target: the GHG or CO2 emissions target or cap for a the GHG or CO2 emissions target or cap for a
particular year. Some targets/caps would apply only to covered sources; others particular year. Some targets/caps would apply only to covered sources; others
apply to total U.S. GHG emissions. apply to total U.S. GHG emissions.
  Distribution of allowance value or tax revenue: how emission allowance value how emission allowance value
or carbon tax or fee revenue would be distributed (if applicable). or carbon tax or fee revenue would be distributed (if applicable).
  Offset and international allowance treatment: the degree to which offsets and the degree to which offsets and
international allowances could be used for compliance purposes and the types of international allowances could be used for compliance purposes and the types of
offset activities that would qualify. Some proposals limit offsets by percentage of offset activities that would qualify. Some proposals limit offsets by percentage of
required reductions; others limit offsets as a percentage of allowance required reductions; others limit offsets as a percentage of allowance
submissions. submissions.
  Mechanism to address carbon-intensive imports: a central concern with a U.S. a central concern with a U.S.
GHG reduction program is that it could raise U.S. prices more than goods GHG reduction program is that it could raise U.S. prices more than goods
manufactured abroad, potentially creating a competitive disadvantage for some manufactured abroad, potentially creating a competitive disadvantage for some
domestic businesses, particularly carbon-intensive, trade-exposed industries. domestic businesses, particularly carbon-intensive, trade-exposed industries.
Policymakers could address these potential impacts in several ways—for Policymakers could address these potential impacts in several ways—for
example, through border adjustments, tax rebates, or emission allowances example, through border adjustments, tax rebates, or emission allowances
provided at no cost to selected industrial sectors. provided at no cost to selected industrial sectors.
  Additional GHG reduction measures: other mechanisms that are designed to other mechanisms that are designed to
further reduce GHG emissions that are not covered in the central program. further reduce GHG emissions that are not covered in the central program.

27 One GHG emission reduction bill was introduced in the 107th Congress. Sen. Jeffords introduced S. 556, which 27 One GHG emission reduction bill was introduced in the 107th Congress. Sen. Jeffords introduced S. 556, which
would have amended the Clean Air Act to reduce CO2 emissions from electric power plants to below 1990 levels. would have amended the Clean Air Act to reduce CO2 emissions from electric power plants to below 1990 levels.
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Table 1. GHG Emission Reduction Proposals: 108th Congress
Ordered Chronologically by Introduced Date Ordered Chronologically by Introduced Date
Bill Number,
Sponsor,
Distribution of
Mechanism
Introduced
Allowance
Offset and
to Address
Additional
Date, and
Value or
International
Carbon-
GHG
Committee or
General
Covered
Emissions Limit or
Tax/Fee
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
S. 139 S. 139
Cap-and-trade Cap-and-trade
Electric power, industrial, Electric power, industrial,
Cap of 5,896 mtCO2e Cap of 5,896 mtCO2e
Determined by Determined by
From 2010 From 2010
No specific No specific
No specific No specific
Lieberman Lieberman
system for system for
or commercial entities that or commercial entities that
for covered sources by for covered sources by
the Secretary of the Secretary of
through 2015, through 2015,
provision provision
provision provision
Jan. 9, 2003 Jan. 9, 2003
GHG emissions emit over 10,000 mtCO2e GHG emissions emit over 10,000 mtCO2e
2010 (equivalent to 2010 (equivalent to
Commerce; Commerce;
up to 15% of up to 15% of
Discharged by
from multiple from multiple
annually; any refiner or annually; any refiner or
2000 levels), reduced by allowances 2000 levels), reduced by allowances
submitted submitted
unanimous
sectors sectors
importer of petroleum importer of petroleum
the level of emissions the level of emissions
provided to provided to
allowances can allowances can
consent by the
products for transportation from non-covered products for transportation from non-covered
covered entities at come from covered entities at come from
Senate Committee
use that, when combusted, use that, when combusted,
sources; cap of 5,123 sources; cap of 5,123
no cost and to the no cost and to the
domestic or domestic or
on Environment
~~wil~~ will emit over 10,000 emit over 10,000
mtCO2e for covered mtCO2e for covered
newly established, newly established,
international international
and Public Works
mtCO2e annually; and any mtCO2e annually; and any
sources by 2016 sources by 2016
nonprofit Climate nonprofit Climate
offsets; after offsets; after
on Oct. 29, 2003
importer or producer of importer or producer of
(equivalent to 1990 (equivalent to 1990
Change Credit Change Credit
2015, 10% of 2015, 10% of
HFC, PFC, and SF HFC, PFC, and SF
levels), reduced by the levels), reduced by the
Corporation, Corporation,
submitted submitted
S.Amdt. 2028 S.Amdt. 2028,
6 that, 6 that,
when used, when used, ~~wil~~ will emit over emit over
level of emissions from level of emissions from
which may use which may use
allowance can allowance can
which contained
10,000 mtCO 10,000 mtCO
non-covered sources non-covered sources
allowance to help allowance to help
come from come from
similar provisions,
2e 2e
energy consumers energy consumers
offsets offsets
was not agreed to
with increased with increased
on Oct. 30, 2003
prices and provide prices and provide
transition transition
assistance to assistance to
dislocated dislocated
workers and workers and
communities communities
S. 366 S. 366
Cap-and-trade Cap-and-trade
Fossil-fuel-fired electric Fossil-fuel-fired electric
Cap on electric power Cap on electric power
EPA allocates free EPA allocates free
No specific No specific
No specific No specific
No specific No specific
Jeffords Jeffords
system for CO2 generating facilities with a system for CO2 generating facilities with a
emissions of 2.05 emissions of 2.05 ~~bil ion~~billion
allowances to the allowances to the
provision provision
provision provision
provision provision
Feb. 12, 2003 Feb. 12, 2003
emissions from emissions from
capacity of greater than 15 capacity of greater than 15
metric tons in 2009 metric tons in 2009
~~fol owing~~following: :
power plants; power plants;
megawatts megawatts
(equivalent to 1995 (equivalent to 1995
60% to 60% to
also addresses also addresses
emissions) emissions)
households to households to
other air other air
alleviate increased alleviate increased
~~pol utants~~pollutants
electricity prices electricity prices
(mercury, (mercury,
CRS-7 CRS-7

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

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

Table 2. GHG Emission Reduction Proposals: 109th Congress
Ordered Chronologically by Introduced Date Ordered Chronologically by Introduced Date
Bill
Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
S. 150 S. 150
Cap-and-trade system for Cap-and-trade system for
Fossil-fuel-fired Fossil-fuel-fired
Cap on Cap on
In 2010, EPA allocates In 2010, EPA allocates
No specific No specific
No specific No specific
No specific No specific
Jeffords Jeffords
CO2 emissions from power CO2 emissions from power
electric generating electric generating
electric electric
free allowance to the free allowance to the
provision provision
provision provision
provision provision
Jan. 25, 2005 Jan. 25, 2005
plants; also addresses other plants; also addresses other
facilities with a facilities with a
power power
~~fol owing:~~
~~air pol utants~~following: air pollutants (mercury, (mercury,
capacity of greater capacity of greater
emissions of emissions of
60% to households to 60% to households to
sulfur dioxide, nitrogen sulfur dioxide, nitrogen
than 15 megawatts than 15 megawatts
2.05 2.05 ~~bil ion~~billion
alleviate increased alleviate increased
oxide) oxide)
metric tons metric tons
electricity prices electricity prices
in 2010 in 2010
6% for worker 6% for worker
transition assistance transition assistance
20% for renewable 20% for renewable
energy and energy energy and energy
efficiency efficiency
10% to electricity 10% to electricity
generation facilities generation facilities
1% for forest 1% for forest
sequestration sequestration
2% for geologic 2% for geologic
sequestration sequestration
S. 342 S. 342
Cap-and-trade system for Cap-and-trade system for
Electric power, Electric power,
Cap of Cap of
Determined by the Determined by the
Up to 15% of Up to 15% of
No specific No specific
No specific No specific
McCain McCain
GHG emissions from GHG emissions from
industrial, or industrial, or
5,896 5,896
Secretary of Secretary of
submitted submitted
provision provision
provision provision
Feb. 10, 2005 Feb. 10, 2005
multiple sectors multiple sectors
commercial entities commercial entities
mtCO2e for mtCO2e for
Commerce; allowances Commerce; allowances
allowances can allowances can
that emit over 10,000 that emit over 10,000
covered covered
provided to covered provided to covered
come from come from
mtCO2e annually; any mtCO2e annually; any
sources by sources by
entities at no cost and entities at no cost and
domestic or domestic or
refiner or importer of 2010 refiner or importer of 2010
to the newly to the newly
international international
petroleum products petroleum products
(equivalent (equivalent
established, nonprofit established, nonprofit
offsets; if offsets offsets; if offsets
for transportation use to 2000 for transportation use to 2000
Climate Change Credit Climate Change Credit
account for 15% account for 15%
that, when that, when
levels), levels),
Corporation, which Corporation, which
of allowances, at of allowances, at
CRS-10 CRS-10

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

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

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

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

Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
H.R. 1590 H.R. 1590
Cap-and-trade Cap-and-trade
Determined by EPA Determined by EPA
1990 GHG 1990 GHG
Determined by the Determined by the
No specific No specific
No specific No specific
GHG emission GHG emission
Waxman Waxman
system for GHG system for GHG
through a rulemaking through a rulemaking
levels for all levels for all
President; Congress President; Congress
provision provision
provision provision
standards for standards for
Mar. 20, 2007 Mar. 20, 2007
emissions emissions
process process
sources by sources by
may enact may enact
vehicles, energy vehicles, energy
2020 2020
alternative plan alternative plan
efficiency standards, efficiency standards,
within one year within one year
renewable portfolio renewable portfolio
standards standards
S. 1177 S. 1177
Cap-and-trade Cap-and-trade
Fossil-fuel-fired electric Fossil-fuel-fired electric
2001 CO2 2001 CO2
Allotted to covered Allotted to covered
Determined by Determined by
No specific No specific
No specific provision No specific provision
Carper Carper
system for CO2 system for CO2
generating facilities that generating facilities that
emission emission
sources based on sources based on
EPA EPA
provision provision
Apr. 20, 2007 Apr. 20, 2007
emissions from emissions from
have a capacity of have a capacity of
levels by levels by
previous years previous years
electricity electricity
greater than 25 greater than 25
2015 2015
emission levels emission levels
sector; also sector; also
megawatts and generate megawatts and generate
addresses other addresses other
electricity for sale electricity for sale
air air ~~pol utants~~pollutants
(mercury, sulfur (mercury, sulfur
dioxide, nitrogen dioxide, nitrogen
oxide) oxide)
H.R. 2069 H.R. 2069
Tax starting at Tax starting at
Manufacturers, Manufacturers,
Tax rate Tax rate
No specific No specific
NA NA
No specific No specific
No specific provision No specific provision
Stark Stark
$10/short ton of $10/short ton of
producers, or producers, or
freeze if CO2 freeze if CO2
provision provision
provision provision
Apr. 26, 2007 Apr. 26, 2007
carbon content carbon content
importers who sell a importers who sell a
emissions do emissions do
in taxable fuels, in taxable fuels,
taxable fuel, which taxable fuel, which
not exceed not exceed
which equates to includes coal, which equates to includes coal,
20% of U.S. 20% of U.S.
approximately approximately
petroleum and petroleum and
1990 CO2 1990 CO2
$2.70/tCO2 $2.70/tCO2
petroleum products, petroleum products,
emissions by emissions by
emissions emissions
and natural gas and natural gas
2020 2020
The rate The rate
increases $10 increases $10
per year (in per year (in
nominal nominal ~~dol ars~~dollars) )
CRS-19 CRS-19

Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
S. 1766 S. 1766
Cap-and-trade Cap-and-trade
Petroleum refineries, Petroleum refineries,
1990 GHG 1990 GHG
In 2012, 53% of In 2012, 53% of
Unlimited use of Unlimited use of
International International
No specific provision No specific provision
Bingaman Bingaman
system for GHG system for GHG
natural gas processing natural gas processing
levels for levels for
allowances allocated domestic offsets; allowances allocated domestic offsets;
reserve reserve
July 11, 2007 July 11, 2007
emissions from emissions from
plants, and imports of plants, and imports of
covered covered
to covered and to covered and
international international
allowances must allowances must
multiple sectors multiple sectors
petroleum products, petroleum products,
sources by sources by
certain industrial certain industrial
offsets limited to offsets limited to
accompany accompany
with allowance with allowance
coke, or natural gas; coke, or natural gas;
2020 2020
entities entities
10% of a 10% of a
imports of any imports of any
price ceiling: in price ceiling: in
entities that consume entities that consume
23% allocated to 23% allocated to
regulated entity’s regulated entity’s
covered GHG covered GHG
2012, $12/ton, 2012, $12/ton,
more than 5,000 tons of more than 5,000 tons of
states and for states and for
emissions target emissions target
intensive goods intensive goods
increasing by 5% increasing by 5%
coal a year; importers coal a year; importers
sequestration and sequestration and
and primary and primary
annually plus annually plus
of HFCs, PFC, SF6, of HFCs, PFC, SF6,
early reduction early reduction
products to the products to the
inflation inflation
N2O, or products N2O, or products
activities activities
United States United States
containing such containing such
Least developed Least developed
compounds, and adipic compounds, and adipic
24% are auctioned 24% are auctioned
nations or those nations or those
acid and nitric acid acid and nitric acid
to fund low-income to fund low-income
that contribute that contribute
plants, aluminum plants, aluminum
assistance, carbon assistance, carbon
no more than no more than
smelters, and facilities smelters, and facilities
capture and storage, capture and storage,
0.5% of global 0.5% of global
that emit HFCs as a that emit HFCs as a
and adaptation and adaptation
emissions are emissions are
byproduct of HCFC byproduct of HCFC
activities activities
excluded excluded
production production
The percentage The percentage
auctioned increases auctioned increases
steadily, reaching steadily, reaching
53% by 2030 53% by 2030
H.R. 3416 H.R. 3416
Tax on CO2 Tax on CO2
Manufacturers, Manufacturers,
No specific No specific
In first year (2008), In first year (2008),
Allows for Allows for
No specific No specific
No specific provision No specific provision
Larson Larson
content on fossil content on fossil
producers, or producers, or
provision provision
approximately 76% approximately 76%
domestic offset domestic offset
provision other provision other
Aug. 3, 2007 Aug. 3, 2007
fuels, starting at fuels, starting at
importers of coal, importers of coal,
would support a would support a
projects (as projects (as
than direct than direct
$15/short ton $15/short ton
petroleum, and natural petroleum, and natural
~~payrol~~ payroll tax rebate tax rebate
prescribed by the prescribed by the
assistance to assistance to
CO2 emissions, CO2 emissions,
gas gas
16% would fund 16% would fund
Secretary of the Secretary of the
affected affected
increasing by increasing by
clean energy clean energy
Treasury) to be Treasury) to be
industries industries
10% annually 10% annually
technology technology
submitted as tax submitted as tax
(determined by (determined by
plus inflation plus inflation
credits or tax credits or tax
the Secretaries the Secretaries
8% would support 8% would support
refunds refunds
of the Treasury of the Treasury
affected industry affected industry
and Labor) and Labor)
transition assistance transition assistance
CRS-20 CRS-20

Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
(declining to zero by (declining to zero by
2017) 2017)
H.R. 4226 H.R. 4226
Cap-and-trade Cap-and-trade
Electric power, Electric power,
85% of 2006 85% of 2006
Determined by EPA Determined by EPA
Up to 15% of Up to 15% of
The President The President
No specific provision No specific provision
Gilchrest Gilchrest
system for GHG system for GHG
industrial, or industrial, or
GHG levels GHG levels
allowance allowance
may establish a may establish a
Nov. 15, 2007 Nov. 15, 2007
emissions from emissions from
commercial entities that from covered commercial entities that from covered
submission can submission can
program to program to
multiple sectors multiple sectors
emit over 10,000 emit over 10,000
sources, sources,
come from come from
require require
A Carbon A Carbon
mtCO2e annually; mtCO2e annually;
reduced by reduced by
domestic and/or domestic and/or
importers to pay importers to pay
Market Efficiency Market Efficiency refiners or importers of refiners or importers of
the level of the level of
international international
the value of the value of
Board may Board may
petroleum products for petroleum products for
emissions emissions
offsets offsets
GHGs emitted GHGs emitted
implement cost- implement cost-
transportation use that, transportation use that,
from non- from non-
during the during the
relief measures relief measures
when combusted, when combusted, ~~wil~~
will covered covered
production of production of
emit over 10,000 emit over 10,000
sources by sources by
goods or goods or
mtCO2e annually; and mtCO2e annually; and
2020 2020
services services
importers or producers importers or producers
imported into imported into
of HFCs, PFCs, or SF6 of HFCs, PFCs, or SF6
the United the United
that, when used, that, when used, ~~wil~~
will States from States from
emit over 10,000 emit over 10,000
countries that countries that
mtCO2e mtCO2e
have no have no
comparable comparable
emission emission
restrictions to restrictions to
those of the those of the
United States United States
S. 2191 S. 2191
Cap-and-trade Cap-and-trade
Producers or importers Producers or importers
Emission cap Emission cap
In 2012: 40% of In 2012: 40% of
Up to 15% of Up to 15% of
International International
Low carbon fuel Low carbon fuel
Lieberman Lieberman
system for GHG system for GHG
of petroleum or coal- of petroleum or coal-
for covered for covered
allowances allocated allowance allowances allocated allowance
reserve reserve
standard for standard for
Oct. 18, 2007 Oct. 18, 2007
emissions from emissions from
based liquid or gaseous based liquid or gaseous
sources in sources in
to covered electric to covered electric
requirement may requirement may
allowances must allowances must
transportation fuels transportation fuels
Ordered
multiple sectors multiple sectors
fuel that emits GHGs, fuel that emits GHGs,
2020 is 4.924 2020 is 4.924
utilities, industrial utilities, industrial
be achieved be achieved
accompany accompany
reported by the
or facilities that or facilities that
~~bil ion~~billion tCO2e tCO2e
facilities, and coops facilities, and coops
through domestic through domestic
imports of any imports of any
Senate
produce or import produce or import
(19% below (19% below
9% allocated to 9% allocated to
offsets; offsets;
covered GHG- covered GHG-
Committee on
more than 10,000 more than 10,000
2005 levels 2005 levels
states for states for
international international
intensive goods intensive goods
Environment
mtCO2e of GHG mtCO2e of GHG
conservation, extra conservation, extra
and primary and primary
chemicals annually; chemicals annually;
CRS-21 CRS-21

Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
and Public
facilities that use more facilities that use more
for covered for covered
reductions, and reductions, and
offsets can satisfy offsets can satisfy
products to the products to the
Works on Dec.
than 5,000 tons of coal than 5,000 tons of coal
sources) sources)
other activities other activities
an additional 15% an additional 15%
United States United States
5, 2007
annually; natural gas annually; natural gas
11.5% for various 11.5% for various
Least developed Least developed
processing plants or processing plants or
sequestration sequestration
nations or those nations or those
importers (including importers (including
activities activities
that contribute that contribute
liquid natural gas liquid natural gas
no more than no more than
[LNG]); or facilities that [LNG]); or facilities that
10% allocated for 10% allocated for
0.5% of global 0.5% of global
emit more than 10,000 emit more than 10,000
electricity consumer electricity consumer
emissions are emissions are
mtCO mtCO
assistance assistance
2e of HFCs 2e of HFCs
excluded excluded
annually as a byproduct annually as a byproduct
5% for early 5% for early
of HFC production of HFC production
reductions reductions
0.5% for tribal 0.5% for tribal
governments governments
18% (plus an early 18% (plus an early
auction of 6%) auction of 6%)
auctioned to fund auctioned to fund
technology technology
deployment, carbon deployment, carbon
capture and storage, capture and storage,
low-income and low-income and
rural assistance, and rural assistance, and
adaptation activities adaptation activities
S. 3036 S. 3036
Cap-and-trade Cap-and-trade
Producers or importers Producers or importers
Emission cap Emission cap
A share of A share of
Up to 15% of Up to 15% of
International International
Low carbon fuel Low carbon fuel
Boxer Boxer
system for GHG system for GHG
of petroleum- or coal- of petroleum- or coal-
for covered for covered
allowances are allowances are
allowance allowance
reserve reserve
standard for standard for
May 20, 2008 May 20, 2008
emissions from emissions from
based liquid or gaseous based liquid or gaseous
sources in sources in
auctioned for deficit auctioned for deficit
requirement may requirement may
allowances must allowances must
transportation fuels transportation fuels
S.Amdt. 4825 S.Amdt. 4825
multiple sectors multiple sectors
fuel that emits GHGs, fuel that emits GHGs,
2020 is 4.924 2020 is 4.924
reduction increasing reduction increasing be achieved be achieved
accompany accompany
(in the nature of
A Carbon A Carbon
or facilities that or facilities that
~~bil ion~~billion tCO2e tCO2e
from 6.1% in 2012 from 6.1% in 2012
through domestic through domestic
imports of any imports of any
substitute) failed
Market Efficiency Market Efficiency produce or import produce or import
(19% below (19% below
to 15.99% in 2031 to 15.99% in 2031
offsets; offsets;
covered GHG- covered GHG-
a cloture motion
Board may Board may
more than 10,000 more than 10,000
2005 levels 2005 levels
and thereafter and thereafter
international international
intensive goods intensive goods
on June 6, 2008
implement cost- implement cost-
mtCO2e of GHG mtCO2e of GHG
for covered for covered
The “remainder The “remainder
allowances can allowances can
and primary and primary
chemicals annually; chemicals annually;
sources) sources)
allowances” are allowances” are
facilities that use more facilities that use more
CRS-22 CRS-22

Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
low income and low income and
rural assistance, and rural assistance, and
adaptation activities, adaptation activities,
as well as program as well as program
management management
H.R. 6186 H.R. 6186
Cap-and-trade Cap-and-trade
Electric power or Electric power or
Emission cap Emission cap
Between 2012 and Between 2012 and
Up to 15% of Up to 15% of
International International
EPA to develop EPA to develop
Markey Markey
system for GHG system for GHG
industrial facilities that industrial facilities that
for covered for covered
2019, 6% of 2019, 6% of
allowance allowance
reserve reserve
emission emission
June 4, 2008 June 4, 2008
emissions from emissions from
emit over 10,000 emit over 10,000
sources in sources in
allowances would allowances would
requirement may requirement may
allowances must allowances must
performance performance
multiple sectors multiple sectors
mtCO2e; producers or mtCO2e; producers or
2020 is 4.983 2020 is 4.983
be distributed to be distributed to
be achieved be achieved
accompany accompany
standards for certain standards for certain
importers of petroleum importers of petroleum
~~bil ion~~billion tCO2e tCO2e
manufacturers of manufacturers of
through domestic through domestic
imports of any imports of any
non-covered entities non-covered entities
or coal-based liquid or coal-based liquid
“trade-exposed “trade-exposed
offsets; offsets;
covered GHG covered GHG
that exceed 10,000 that exceed 10,000
products that, when products that, when
primary goods” primary goods”
international international
intensive goods intensive goods
tCO2e per year tCO2e per year
combusted, combusted, ~~wil~~ will emit emit
Remaining 94% Remaining 94%
offsets or offsets or
and primary and primary
Low-carbon fuel Low-carbon fuel
over 10,000 mtCO2e over 10,000 mtCO2e
auctioned (100% by auctioned (100% by
allowances can allowances can
products to the products to the
standard for standard for
annually; local annually; local
2020), with 2020), with
satisfy an satisfy an
United States United States
transportation fuels transportation fuels
distribution companies distribution companies
revenues distributed additional 15% revenues distributed additional 15%
Least developed Least developed
that deliver natural gas that deliver natural gas
Performance Performance
(in FY2010-FY2019) (in FY2010-FY2019)
nations or those nations or those
that, when combusted, that, when combusted,
standard for certain standard for certain
as as ~~fol ows~~follows: :
that contribute that contribute
~~wil~~ will emit over 10,000 emit over 10,000
coal-fired power coal-fired power
no more than no more than
tCO tCO
58.5% to middle- 58.5% to middle-
plants to capture and plants to capture and
2e annually; 2e annually;
0.5% of global 0.5% of global
producers or importers producers or importers
and low-income and low-income
geologically sequester geologically sequester
emissions are emissions are
of HFCs, PFCs, SF of HFCs, PFCs, SF
households as tax households as tax
not less than 85% of not less than 85% of
6, or 6, or
excluded excluded
NF NF
credits and/or credits and/or
their CO2 emissions their CO2 emissions
3 that, when used, 3 that, when used,
~~wil~~ will emit over 10,000 emit over 10,000
rebates rebates
mtCO2e; sites at which mtCO2e; sites at which
12.5% for 12.5% for
CO2 is CO2 is ~~geological y~~geologically
development and development and
sequestered on a sequestered on a
promotion of low- promotion of low-
commercial scale commercial scale
carbon technology carbon technology
12.5% for energy 12.5% for energy
efficiency programs efficiency programs
CRS-24 CRS-24

Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
4.5% for biological 4.5% for biological
sequestration sequestration
1.5% for worker 1.5% for worker
transition assistance transition assistance
2% for domestic 2% for domestic
adaptation efforts adaptation efforts
1.5% for protection 1.5% for protection
of natural resources of natural resources
1.5% for 1.5% for
international forest international forest
protection protection
3.5% for 3.5% for
international clean international clean
technology technology
2% for international 2% for international
adaptation efforts adaptation efforts
H.R. 6316 H.R. 6316
Cap-and-trade Cap-and-trade
Producers or importers Producers or importers
Emission cap Emission cap
In 2012, 5% of the In 2012, 5% of the
Up to 10% of Up to 10% of
International International
EPA to promulgate EPA to promulgate
Doggett Doggett
system for GHG system for GHG
of petroleum- or coal- of petroleum- or coal-
for covered for covered
allowances are allowances are
allowance allowance
reserve reserve
regulations that regulations that
June 19, 2008 June 19, 2008
emissions from emissions from
based liquid or gaseous based liquid or gaseous
sources in sources in
allocated to electric allocated to electric
requirement may requirement may
allowances must allowances must
address emissions in address emissions in
multiple sectors multiple sectors
fuel that emits GHGs, fuel that emits GHGs,
2020 is 6.087 2020 is 6.087
generators; 10% are generators; 10% are
be achieved be achieved
accompany accompany
uncovered sectors uncovered sectors
A Carbon A Carbon
or facilities that or facilities that
~~bil ion~~billion
allocated to energy allocated to energy
through domestic through domestic
imports of any imports of any
Market Efficiency Market Efficiency produce or import produce or import
mtCO2e mtCO2e
intensive industries intensive industries
offsets; offsets;
covered GHG- covered GHG-
Board may Board may
more than 10,000 more than 10,000
Remaining Remaining
international international
intensive goods intensive goods
implement cost- implement cost-
mtCO2e of GHG mtCO2e of GHG
allowances are allowances are
allowances can allowances can
and primary and primary
relief measures relief measures
chemicals annually; chemicals annually;
auctioned with auctioned with
satisfy an satisfy an
products to the products to the
facilities that use more facilities that use more
revenues used for revenues used for
additional 15% additional 15%
United States United States
than 5,000 tons of coal than 5,000 tons of coal
the the ~~fol owing~~following: :
Least developed Least developed
annually; natural gas annually; natural gas
nations or those nations or those
processing plants or processing plants or
54% for consumer 54% for consumer
that contribute that contribute
importers (including importers (including
assistance (66% of assistance (66% of
which goes towards which goes towards
no more than no more than
CRS-25 CRS-25

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Table 9. GHG Emission Reduction Proposals: 116th Congress
Ordered Chronologically by Introduced Date Ordered Chronologically by Introduced Date
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
H.R. 763 H.R. 763
Fee on fossil Fee on fossil
Covered entities Covered entities
Emission reduction Emission reduction
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of carbon- Imports of carbon-
Separate fee for Separate fee for
Deutch Deutch
fuels based on fuels based on
include petroleum include petroleum
targets apply to fossil targets apply to fossil
receives appropriations equal receives appropriations equal
provisions provisions
intensive products intensive products
fluorinated GHGs set fluorinated GHGs set
Jan. 24, 2019 Jan. 24, 2019
their GHG their GHG
refineries and refineries and
fuel combustion fuel combustion
to emission fee revenues to emission fee revenues
subject to a fee— subject to a fee—
at 10% of fee for at 10% of fee for
content content
importers, coal importers, coal
emissions; starting in emissions; starting in
received in the Treasury; received in the Treasury;
determined by the determined by the
fossil fuel emissions fossil fuel emissions
Fee set at Fee set at
mines and mines and
2025, annual 2025, annual
monies in the trust fund are monies in the trust fund are
Secretary of the Secretary of the
Suspends Suspends
$15/mtCO $15/mtCO
importers, natural importers, natural
reductions of 5% of reductions of 5% of
available (after administrative available (after administrative
Treasury—that is Treasury—that is
2e 2e
enforcement of enforcement of
emissions in emissions in
gas deliverers and gas deliverers and
2016 levels (248 2016 levels (248
expenses) to provide monthly expenses) to provide monthly
equivalent to the equivalent to the
certain Clean Air Act certain Clean Air Act
2019, increasing 2019, increasing
importers importers
~~mil ion~~million mtCO2e) mtCO2e)
payments to eligible individuals payments to eligible individuals
excess of (1) GHG excess of (1) GHG
GHG regulations; if GHG regulations; if
by $10 each year by $10 each year
between 2025 and between 2025 and
(i.e., persons with a Social (i.e., persons with a Social
emissions from emissions from
EPA determines (in EPA determines (in
plus inflation plus inflation
2034; annual 2034; annual
Security number or taxpayer Security number or taxpayer
production production
2030 and every five 2030 and every five
reductions of 2.5% of reductions of 2.5% of
identification number); adults identification number); adults
multiplied by the multiplied by the
If emission If emission
years thereafter) years thereafter)
2016 levels between 2016 levels between
get one share and children get one share and children
relevant U.S. relevant U.S.
reduction targets reduction targets
emission targets are emission targets are
2035 and 2050 2035 and 2050
receive a half-share receive a half-share
emissions fee over emissions fee over
are not met, fee are not met, fee
not met, the not met, the
(2) the total foreign (2) the total foreign
increases by $15 increases by $15
Fee ceases if emissions Fee ceases if emissions
enforcement enforcement
product cost of product cost of
plus inflation; if plus inflation; if
from covered fuels from covered fuels
suspension would suspension would
carbon carbon
targets met, fee targets met, fee
decrease to 10% of decrease to 10% of
cease and EPA must cease and EPA must
does not does not
2016 emission levels 2016 emission levels
Exporters of Exporters of
promulgate promulgate
increase increase
of covered fuels (500 of covered fuels (500
carbon-intensive carbon-intensive
regulations to reduce regulations to reduce
~~mil ion~~million mtCO mtCO
products (and products (and
emissions from emissions from
Provides a Provides a
2e) and 2e) and
monthly dividend monthly dividend
covered fuels) may covered fuels) may
covered fuels covered fuels
rebate for fuels rebate for fuels
check reach certain check reach certain
receive a refund receive a refund
used on a farm used on a farm
Directs Department Directs Department
levels levels
under an analogous under an analogous
and for fuels or and for fuels or
of Energy to enter of Energy to enter
formula formula
their derivatives their derivatives
agreement with the agreement with the
used by U.S. used by U.S.
National Academy of National Academy of
Armed Forces Armed Forces
Sciences to study Sciences to study
effects of the fee on effects of the fee on
emissions from emissions from
biomass and resulting biomass and resulting
impacts on carbon impacts on carbon
sinks sinks
CRS-58 CRS-58

Table 10. GHG Emission Reduction Proposals: 117th Congress
Ordered Chronologically by Introduced Date Ordered Chronologically 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. 1512 H.R. 1512
Among a range Among a range
Carbon fee applies Carbon fee applies
EPA to set emission EPA to set emission
Carbon fees used to fund a Carbon fees used to fund a
Offsets may be Offsets may be
No specific No specific
The Climate The Climate
Pallone Pallone
of other climate of other climate
to fossil fuel storage to fossil fuel storage
reduction targets for reduction targets for
“Race to Net-Zero Grant “Race to Net-Zero Grant
used by states as used by states as
provisions provisions
Leadership and Leadership and
Mar. 2, 2021 Mar. 2, 2021
mitigation mitigation
terminals and terminals and
CO2 and methane CO2 and methane
Program,” which provides Program,” which provides
part of their state part of their state
Environmental Action Environmental Action
provisions, provisions,
distributors; electric emissions from distributors; electric emissions from
grants to sources that paid a grants to sources that paid a
climate plans; EPA climate plans; EPA
for our Nation’s for our Nation’s
requires states requires states
power generators; power generators;
covered sources, so covered sources, so
carbon fee in the current or carbon fee in the current or
is to develop is to develop
Future (CLEAN Future (CLEAN
to prepare and to prepare and
and sources that and sources that
that the national GHG preceding fiscal year; grant that the national GHG preceding fiscal year; grant
process for process for
Future Act) includes Future Act) includes
submit to EPA a submit to EPA a
emit more than emit more than
emissions targets are emissions targets are
used to support emission used to support emission
accounting for accounting for
a number of a number of
plan for achieving 25,000 mtCO2e plan for achieving 25,000 mtCO2e
achieved, including a achieved, including a
reduction efforts at covered reduction efforts at covered
offsets; the type offsets; the type
provisions that would provisions that would
GHG emission GHG emission
Carbon fee amount Carbon fee amount
2030 target of 50% 2030 target of 50%
sources sources
of offsets allowed of offsets allowed
directly or indirectly directly or indirectly
reductions reductions
determined by EPA, determined by EPA,
reduction in GHG reduction in GHG
is unspecified is unspecified
reduce GHG reduce GHG
As part of their As part of their
based on modeling based on modeling
emissions compared emissions compared
emissions, including a emissions, including a
plans, states may plans, states may
analysis of the fee analysis of the fee
to 2005 levels to 2005 levels
clean electricity clean electricity
adopt emission adopt emission
needed to achieve needed to achieve
standard, energy standard, energy
control control
specific emission specific emission
efficiency standards efficiency standards
strategies strategies
reduction targets reduction targets
and incentives, and incentives,
developed and developed and
among other among other

administered by administered by
approaches approaches
EPA, including EPA, including
emissions trading emissions trading
systems systems
Establishes a Establishes a
“federal “federal
backstop” backstop”
carbon fee in a carbon fee in a
state that does state that does
not submit an not submit an
acceptable acceptable
climate plan, as climate plan, as
determined by determined by
EPA EPA
CRS-71 CRS-71

~~link to page 79~~
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 increases are fee increases are
2050: 90% below 2018 5% to support agricultural and 2050: 90% below 2018 5% to support agricultural and
the exporting the exporting

greater greater
forestry sequestration forestry sequestration
nation nation

Fee on other Fee on other
activities; activities;
Exporters of fossil Exporters of fossil
sources starts in sources starts in
10% for grants to eligible 10% for grants to eligible
fuels and carbon- fuels and carbon-
2025 2025
entities to support transition entities to support transition
intensive products intensive products
A rebate is A rebate is
assistance to a lower carbon assistance to a lower carbon
may receive a may receive a
provided for provided for
economy; economy;
rebate based on rebate based on
carbon capture, carbon capture,
15% for a newly established 15% for a newly established
the emissions fee the emissions fee
sequestration, sequestration,
Climate Change Finance Climate Change Finance
and manufacturing and manufacturing
and utilization and utilization
Corporation to finance “clean Corporation to finance “clean
costs attributable costs attributable
activities, if activities, if
energy” and climate change energy” and climate change
to the emissions to the emissions
certain certain
resiliency activities, including resiliency activities, including
fee fee
conditions are conditions are
research and development and research and development and
met met
commercialization of commercialization of
technologies technologies
H.R. H.R. ~~230~~7a2307
Fee on fossil Fee on fossil
Covered entities Covered entities
Emission reduction Emission reduction
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of carbon- Imports of carbon-
Directs Department Directs Department
Deutch Deutch
fuels based on fuels based on
include petroleum include petroleum
targets apply to fossil targets apply to fossil
receives appropriations equal receives appropriations equal
provisions provisions
intensive products intensive products
of Energy to enter of Energy to enter
Apr. 1, 2021 Apr. 1, 2021
their GHG their GHG
refineries and refineries and
fuel combustion fuel combustion
to emission fee revenues to emission fee revenues
subject to a fee— subject to a fee—
agreement with the agreement with the
content content
importers, coal importers, coal
emissions; starting in emissions; starting in
received in the Treasury; received in the Treasury;
determined by the determined by the
National Academy of National Academy of
Fee set at Fee set at
mines and mines and
2023, annual 2023, annual
monies in the trust fund are monies in the trust fund are
Secretary of the Secretary of the
Sciences to study Sciences to study
$15/mtCO $15/mtCO
importers, natural importers, natural
reductions of 5% of reductions of 5% of
available (after administrative available (after administrative
Treasury—equal to effects of the fee on Treasury—equal to effects of the fee on
2e 2e
emissions in emissions in
gas deliverers and gas deliverers and
2010 net GHG levels 2010 net GHG levels
expenses) to provide monthly expenses) to provide monthly
the total carbon the total carbon
emissions from emissions from
2021, increasing 2021, increasing
importers importers
(287 (287 ~~mil ion~~million mtCO2e) mtCO2e)
payments to eligible individuals payments to eligible individuals
fee that would fee that would ~~have~~ biomass and resulting biomass and resulting
by $10 each year by $10 each year
between 2023 and between 2023 and
(i.e., persons with a Social (i.e., persons with a Social
~~accumulated upon~~have accumulated
impacts on carbon impacts on carbon
plus inflation plus inflation
2030; annual 2030; annual
Security number or taxpayer Security number or taxpayer
upon the GHG the GHG ~~content~~
sinks sinks
reductions of 3% of reductions of 3% of
identification number); adults identification number); adults
content of the ~~of the product if~~
If emission If emission
2010 net GHG levels 2010 net GHG levels
get one share and children get one share and children
~~the product were~~product if the
reduction targets reduction targets
(172 (172 ~~mil ion~~million mtCO mtCO
receive a half-share receive a half-share
~~produced in the~~product were
are not met, fee are not met, fee
2e) 2e)
between 2031 and between 2031 and
~~United States;~~produced in the the
increases by $15 increases by $15
2050 2050
~~Secretary may~~United States; the
plus inflation; if plus inflation; if
~~modify this fee~~Secretary may
targets met, fee targets met, fee
Fee ceases if emissions Fee ceases if emissions
from covered fuels from covered fuels
modify this fee based on mitigation based on mitigation
CRS-73 CRS-73

~~link to page 79~~
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
does not does not
decrease to 10% of decrease to 10% of
efforts/costs in the efforts/costs in the
increase increase
2010 emissions from 2010 emissions from
country of export country of export
Provides a Provides a
covered fuels (544 covered fuels (544
Exporters of Exporters of
rebate for fuels rebate for fuels
~~mil ion~~million mtCO2e) and mtCO2e) and
carbon-intensive carbon-intensive
used on a farm used on a farm
monthly dividend monthly dividend
products (and products (and
and for fuels or and for fuels or
check reach certain check reach certain
covered fuels) may covered fuels) may
their derivatives their derivatives
levels levels
receive a refund receive a refund
used by U.S. used by U.S.
based on fee levied based on fee levied
Armed Forces Armed Forces
before exportation before exportation
H.R. H.R. ~~245~~1b2451
Fee on fossil Fee on fossil
Fee imposed on coal Fee increases are Fee imposed on coal Fee increases are
Establishes a trust fund that Establishes a trust fund that
No specific No specific
Imports of carbon- Imports of carbon-
Directs EPA to enter Directs EPA to enter
Newman Newman
fuels and other fuels and other
at coal mines and at coal mines and
based on emission based on emission
receives appropriations equal receives appropriations equal
provisions provisions
intensive goods are agreement with the intensive goods are agreement with the
Apr. 12, 2021 Apr. 12, 2021
selected GHG selected GHG
importers, crude oil importers, crude oil
targets; targets based targets; targets based
to emission fees received in to emission fees received in
subject to a fee subject to a fee
National Academy of National Academy of

emission sources at refineries and emission sources at refineries and
on percentage on percentage
the Treasury; after subtracting the Treasury; after subtracting
(determined by the (determined by the
Sciences to study Sciences to study
This proposal is
Fee on fossil Fee on fossil
importers, and importers, and
reductions compared reductions compared
fee rebates and, in the first 18 fee rebates and, in the first 18
Secretary of the Secretary of the
effects of fee effects of fee
identical to S. 685
fuels starts in fuels starts in
natural gas at natural gas at
to emission levels to emission levels
years, approximately $5.5 years, approximately $5.5
Treasury) that is Treasury) that is
program program
(Durbin)
2023 at 2023 at
producing producing ~~wel s~~wells and and
from covered fuels from covered fuels
~~bil ion~~billion per year, the remaining per year, the remaining
equivalent to the equivalent to the
Directs the Council Directs the Council
$25/mtCO $25/mtCO
importers; and importers; and
and sources in 2018: and sources in 2018:
funds are allocated funds are allocated
difference in (1) difference in (1)
2e, 2e,
on Environmental on Environmental
increasing increasing
select sources that select sources that

approximately as approximately as ~~fol ows~~follows
costs domestic costs domestic
Quality to develop Quality to develop
annually by $10 annually by $10
emit 25,000 emit 25,000
2030: 45% below 2018 during the first 10 years: 2030: 45% below 2018 during the first 10 years:
producers of producers of
carbon sequestration carbon sequestration
plus inflation; if plus inflation; if
mtCO2e or more of mtCO2e or more of
comparable comparable
2035: 60% below 2018 70% for direct payments to 2035: 60% below 2018 70% for direct payments to
targets and strategies targets and strategies
emission targets emission targets
CO2 or methane CO2 or methane
eligible individuals, phasing out eligible individuals, phasing out
products incur due products incur due
for public and private for public and private
are not met, the are not met, the
per year per year
2040: 70% below 2018 at certain income levels; 2040: 70% below 2018 at certain income levels;
to the fee and (2) to the fee and (2)
land and water land and water
fee increases are fee increases are

2045: 80% below 2018 2045: 80% below 2018
the comparable the comparable
5% to support agricultural and 5% to support agricultural and
resources resources
greater greater
2050: 90% below 2018 2050: 90% below 2018
costs imposed by costs imposed by
forestry sequestration forestry sequestration

the exporting the exporting
Fee on other Fee on other
activities; activities;

nation nation
sources starts in sources starts in
10% for grants to eligible 10% for grants to eligible
2025 2025
Exporters of fossil Exporters of fossil
entities to support transition entities to support transition
fuels and carbon fuels and carbon
A rebate is A rebate is
assistance to a lower carbon assistance to a lower carbon
intensive products intensive products
provided for provided for
economy; economy;
may receive a may receive a
carbon capture, carbon capture,
15% for a newly established 15% for a newly established
rebate based on rebate based on
sequestration, sequestration,
Climate Change Finance Climate Change Finance
the emissions fee the emissions fee
and utilization and utilization
Corporation to finance “clean Corporation to finance “clean
and manufacturing and manufacturing
CRS-74 CRS-74

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
activities, if activities, if
energy” and climate change energy” and climate change
costs attributable costs attributable
certain certain
resiliency activities, including resiliency activities, including
to the emissions to the emissions
conditions are conditions are
research and development and research and development and
fee fee
met met
commercialization of commercialization of
technologies technologies
Source: Prepared by CRS.
~~a. Based on unofficial text available at Representative Deutch’s website, https://teddeutch.house.gov/news/documentsingle.aspx?DocumentID=402941.~~
~~b. Based on unofficial text provided by the office of Representative Newman.~~

~~CRS-75~~H.R. 3039 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 May 7, 2021 their potential and importers, emissions starts in equal to 75% of the tax subject to a border moratorium on GHG emissions, petroleum products 2023 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 following infrastructure is equivalent to the sources (with some sources, and processors or at 47,100 mmtCO2e in programs (“as provided in costs in exceptions) GHG emissions point of sale for 2033; assuming annual appropriations acts”) between comparable Creates a credit from specific combustion emission levels FY2023 and FY2032: domestic system, which phases products Tax imposed on followed 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 2023 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 allocate to low-income existing state GHG increasing emit more than 4,000 mmtCO2e in households; Exporters of goods reduction programs annually by 5% 25,000 mtCO 2033 2e per that are both Creates a National plus inflation; if year 4.2% for various energy- energy-intensive Climate Commission covered related research and Tax imposed on and trade-intensive to set five-year emissions do not development objectives, facilities that may receive a tax emission reduction meet emission including carbon capture and manufacture or refund related to goals between 2027 reduction storage and battery import specified the increased costs and 2052 and assess schedule, the tax technology; products or of inputs (i.e., fossil the effectiveness of rate increases by combust biomass 4.0% for frequent and chronic fuels) subject to federal policies in an additional $4 with emissions coastal flooding mitigation and the tax meeting these goals above 25,000 adaptation infrastructure mtCO projects; 2e CRS-75 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 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 S. 2085 Fee on fossil Fee applies to coal Fee continues until The bill provides an annual tax No specific Imports of carbon- Separate fee for Whitehouse fuels based on at mines and national GHG credit for each individual; provisions intensive goods fluorinated GHGs June 16, 2021 their carbon importers, emissions are 80% provides an equivalent benefit subject to a fee— Separate fee for content and petroleum at below 2005 levels to individuals not eligible for determined by the GHGs (other than certain facilities refineries and the tax credit Secretary of the CO2 and fluorinated for GHG importers, natural Provides up to $10 billion in Treasury—that is gas emissions) at emissions gas deliverers (as annual grants to states to be equivalent to the facilities that (1) are Fee set at reported on Energy used to difference in (1) subject to GHG $54/ton CO Information costs domestic 2 reporting emissions in Administration producers of requirements in 40 CRS-76 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 2023, increasing Form 176) and (1) assist low-income and rural comparable C.F.R. Part 98 and (2) by 6% plus some natural gas households with energy costs, products incur due emit more than inflation each processors; and (2) support job training and to the carbon price 25,000 mtCO2e year facilities that (1) are worker assistance programs, and (2) the emissions subject to GHG and comparable costs Additional fee for reporting (e.g., GHG fees) GHG emissions requirements in 40 (3) assist the state in climate imposed by the (described as C.F.R. Part 98 and change adaptation or transition nation exporting “associated (2) emit more than to a low-carbon economy; this the material emissions”) resulting 25,000 tons of amount increases annually Exporters of from venting, flaring, GHGs annually energy-intensive and leaking across Fee also applies to goods may receive the coal, natural gas, certain industrial a refund related to and petroleum supply sources, regardless the increased costs chains (as determined of their emissions of inputs (i.e., fossil by Secretary of the output, including fuels) subject to Treasury) aluminum the fee 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 H.R. 4084 Directs Fee imposed on No specific provisions Transfers revenues from the No specific No specific No specific Deutch Secretary of the each company that fee on CH4 emissions to the provisions provisions provisions June 23, 2021 Treasury to produces, gathers, National Fish and Wildlife This proposal is estimate the processes, or Foundation to provide grants identical to S. 645 methane (CH4) transmits oil or through the National Coastal (Whitehouse) emissions and natural gas Resilience Fund emission rates CRS-77 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 from each oil- Fee on CH4 and natural-gas- emissions based on producing basin (1) proportion of oil Fee starts in or natural gas 2023 at produced in a $1,800/ton, particular location, increasing or (2) another annually by 2% method of measure plus inflation proposed by a company and approved by the Secretary Source: Prepared by CRS. CRS-78

Market-Based Greenhouse Gas Emission Reduction Legislation

Author Information

Jonathan L. Ramseur Jonathan L. Ramseur

Specialist in Environmental Policy Specialist in Environmental Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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