Market-Based Greenhouse Gas Emission
September 3, 2021July 18, 2022
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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Contents
Introduction ..................................................................................................................................... 1
Background ..................................................................................................................................... 34
What Is a GHG Emissions Cap-and-Trade System? ................................................................. 4
What Is a Carbon Tax or Emissions Fee? .................................................................................. 5
GHG Emission Reduction Legislation by Congress ....................................................................... 6
Figures
Figure 1. Number and Type of Market-Based GHG Emission Reduction Bills Introduced
in 108th Congress Through 117th Congress ................................................................................... 3
Tables
Table 1. GHG Emission Reduction Proposals: 108th Congress ....................................................... 78
Table 2. GHG Emission Reduction Proposals: 109th Congress ...................................................... 11 10
Table 3. GHG Emission Reduction Proposals: 110th Congress ..................................................... 1718
Table 4. GHG Emission Reduction Proposals: 111th Congress ..................................................... 2728
Table 5. GHG Emission Reduction Proposals: 112th Congress ..................................................... 3536
Table 6. GHG Emission Reduction Proposals: 113th Congress ..................................................... 3738
Table 7. GHG Emission Reduction Proposals: 114th Congress ..................................................... 4041
Table 8. GHG Emission Reduction Proposals: 115th Congress ..................................................... 4647
Table 9. GHG Emission Reduction Proposals: 116th Congress ..................................................... 5859
Table 10. GHG Emission Reduction Proposals: 117th Congress ................................................... 7172
Contacts
Author Information ........................................................................................................................ 7981
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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 appellate court vacated and remanded the ACE rule.15
The court also vacated the CPP repeal but
In June 2022, the Supreme Court held that 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
15
SeeFor more background, see CRS Legal Sidebar LSB10666, Congress’s Delegation of “Major Questions”: The Supreme Court’s Review of EPA’s Authority to Regulate Greenhouse Gas Emissions May Have Broad Impacts, by Linda Tsang and Kate R. Bowers. See also Am. Lung Ass'n. v. EPA, No. 19-1140 (D.C. Cir. Jan.. 19, 2021), 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.
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stayed its mandate until the EPA responds to the court’s remand in a new rulemaking action.16when EPA promulgated the 2015 CPP, the agency exceeded its authority under the Clean Air Act. Under the West Virginia v. EPA decision, EPA retains the ability to regulate GHG emissions from power plants and other sources, but it now faces more constraints in how it regulates those emissions. For more details, see CRS Legal Sidebar LSB10791, Supreme Court Addresses Major Questions Doctrine and EPA’s Regulation of Greenhouse Gas Emissions, by Kate R. Bowers. 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.the direct impacts of the carbon price.
1716
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.
https://www.cadc.uscourts.gov/internet/opinions.nsf/6356486C5963F49185258662005677F6/$file/19-1140.correctedopinion.pdf.
16 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.
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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.innovation.
1817 Both carbon tax and emissions cap-and-trade programs would place a price— Both carbon tax and emissions cap-and-trade programs would place a price—
16 See CRS Insight IN11633, Clean Air Act: Electricity Sector and Greenhouse Gas Standards, by Kate C. Shouse. 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.
18 In some instances, legislation would have directed EPA to establish a GHG emissions reduction program with a
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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 system, one emission allowance represents the authority to emit one metric
ton19ton18 of carbon of carbon
dioxide-equivalent (mtCO2e).dioxide-equivalent (mtCO2e).
2019 The emissions cap creates a new commodity—the emission 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 number of emission allowance they need to purchase, or (3) bank them, if allowed, to use in a future year.
The use of emission offsets as a compliance option received attention during debate over cap-and-trade programs. An offset is a measurable reduction, avoidance, or sequestration of GHG emissions from a source not covered by an emission reduction program. Economic analyses of cap-and-trade proposals concluded that offset treatment (i.e., whether or not to allow their use
17 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 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.
1918 A metric ton is approximately 2,205 pounds. A short ton equals 2,000 pounds. A metric ton is approximately 2,205 pounds. A short ton equals 2,000 pounds.
2019 This term of measure (CO2e) is used because GHGs vary by global warming potential (GWP). GWP is an index 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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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 future year.
The use of emission offsets as a compliance option received attention during debate over cap-and-trade programs. An offset is a measurable reduction, avoidance, or sequestration of GHG emissions from a source not covered by an emission reduction program. Economic analyses of cap-and-trade proposals concluded that offset treatment (i.e., whether or not to allow their use and, if so, to what degree) would have a substantial impact on overall program cost. This is 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.fraudulent offsets could create uncertainty about the quantity of emission reductions.
2120
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.that may decrease emissions.
2221
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.program.
2322 For example, to address emissions from fossil fuel combustion—76% of total U.S. For example, to address emissions from fossil fuel combustion—76% of total U.S.
GHG GHG
emissions24emissions23—policymakers could apply a tax/fee to fossil fuels at approximately 3,000 —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.deliveries.
2524
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.of the program.
2625
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 emission allowance value distribution in a cap-and-trade system.
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 borne by specific groups—particularly low-income households and displaced workers or communities—and supporting a range of specific policy objectives.
21 20 Both the RGGI and California cap-and-trade systems allow offsets as a compliance option (see Both the RGGI and California cap-and-trade systems allow offsets as a compliance option (see
footnote 4). 22footnote 4). 21 This differs from a price system that applies to energy content, such as a tax based on British thermal units (Btu). In 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.
2322 See, for example, Alexander R. Barron et al., “Policy Insights from the EMF 32 Study on U.S. Carbon Tax 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).
2423 EPA, EPA,
Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2017, April 2019. , April 2019.
2524 See Table A-1 in CRS Report R45625, 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.
2625 Congressional Budget Office, Congressional Budget Office,
Options for Reducing the Deficit: 2017-2026, 2016. , 2016.
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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.
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 borne by specific groups—particularly low-income households and displaced workers or communities—and supporting a range of specific policy objectives.
A primary argument against a carbon tax/fee system (and a cap-and-trade program) is the concern 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.Congress by including a separate legislative table for each Congress.
2726 The tables compare the 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
further reduce GHG emissions that are not covered in the central program. For more information, see CRS
2726 One GHG emission reduction bill was introduced in the 107th Congress. Sen. Jeffords introduced S. 556, which 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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Report R47167, Border Carbon Adjustments: Background and Recent Developments, by Jonathan L. Ramseur, Brandon J. Murrill, and Christopher A. Casey.
Additional GHG reduction measures: other mechanisms that are designed to
further reduce GHG emissions that are not covered in the central program.
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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
will wil emit over 10,000 emit over 10,000
mtCO2e for covered
mtCO2e for covered
newly established,
newly established,
international
international
and Public Works
mtCO2e 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,
will wil 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
billionbil ion
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
followingfol owing: :
power plants;
power plants;
megawatts
megawatts
(equivalent to 1995
(equivalent to 1995
60% to
60% to
also addresses
also addresses
emissions)
emissions)
households to
households to
other air
other air
alleviate increased
alleviate increased
pollutantspol utants
electricity prices
electricity prices
(mercury,
(mercury,
CRS-
CRS-
78
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
pollutantspol utants
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-
CRS-
89
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
pollutantspol utants (mercury, (mercury,
sulfur dioxide, sulfur dioxide,
nitrogen oxide) nitrogen oxide)
H.R. 4067
H.R. 4067
Cap-and-trade
Cap-and-trade
Electric power, industrial,
Electric power, industrial,
1990 GHG levels 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
will wil 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,
will wil 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-
CRS-
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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
following:
air pollutantsfol owing:
air pol utants (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
billionbil ion
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-
CRS-
1011
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,
will wil 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,
will wil
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,
will wil 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,
will wil
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-
CRS-
1112
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
pollutantspol utants (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
pollutantspol utants (mercury, sulfur (mercury, sulfur
threshold)
threshold)
emissions of
emissions of
dioxide, nitrogen oxide)
dioxide, nitrogen oxide)
2.05
2.05
billionbil ion 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
pollutantspol utants (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,
will wil 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-
CRS-
1213
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,
will wil
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,
will wil 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,
will wil
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-
CRS-
1314
Bill
Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
from years
from years
5% to states for energy
5% to states for energy
prior to
prior to
assistance to low-
assistance to low-
enactment,
enactment,
income households
income households
without
without
25% to the Department
25% to the Department
reductions
reductions
of Energy to support
of Energy to support
in
in
energy research and
energy research and
subsequent
subsequent
development
development
years
years
10% to the Department
10% to the Department
of State to invest in of State to invest in
low-emission and low-emission and
emission-free policies emission-free policies
in developing countries in developing countries
25% to the Department 25% to the Department
of the Treasury to be of the Treasury to be
sold at auction with the sold at auction with the
proceeds deposited in proceeds deposited in
the Treasury the Treasury
S. 2724
S. 2724
Cap-and-trade system for
Cap-and-trade system for
Fossil-fuel-fired
Fossil-fuel-fired
2001 CO2
2001 CO2
Allotted to covered
Allotted to covered
Determined by
Determined by
No specific
No specific
No specific
No specific
Carper
Carper
CO2 emissions from
CO2 emissions from
electric generating
electric generating
emission
emission
sources based on
sources based on
EPA
EPA
provision
provision
provision
provision
May 4, 2006
May 4, 2006
electricity sector; also
electricity sector; also
facilities that have a
facilities that have a
levels by
levels by
previous years emission
previous years emission
addresses other air
addresses other air
capacity of greater
capacity of greater
2015
2015
levels
levels
pollutantspol utants (mercury, sulfur (mercury, sulfur
than 25 megawatts
than 25 megawatts
dioxide, nitrogen oxide)
dioxide, nitrogen oxide)
and generate
and generate
electricity for sale electricity for sale
H.R. 5642
H.R. 5642
Cap-and-trade system for
Cap-and-trade system for
Determined by EPA
Determined by EPA
1990 GHG
1990 GHG
Determined by the
Determined by the
No specific
No specific
No specific
No specific
EPA to
EPA to
Waxman
Waxman
GHG
GHG
levels for
levels for
President based on plan provision
President based on plan provision
provision
provision
promulgate
promulgate
June 20, 2006
June 20, 2006
covered
covered
submitted to Congress;
submitted to Congress;
additional
additional
sources by
sources by
sell via auction and
sell via auction and
regulations to
regulations to
2020; 80%
2020; 80%
distribute to non-
distribute to non-
reduce GHG
reduce GHG
below 1990
below 1990
covered sources to
covered sources to
emissions,
emissions,
CRS-
CRS-
1415
Bill
Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
levels by
levels by
achieve specified goals:
achieve specified goals:
including
including
2050
2050
maximize public
maximize public
performance
performance
benefit, mitigate energy
benefit, mitigate energy
standards,
standards,
costs to consumers,
costs to consumers,
efficiency
efficiency
provide worker
provide worker
standards,
standards,
transition assistance,
transition assistance,
technology
technology
among others
among others
requirements,
requirements,
among others; among others;
directs directs
Department of Department of
Energy to Energy to
promulgate promulgate
renewable renewable
portfolio portfolio
standards standards
S. 3698
S. 3698
Directs EPA to issue
Directs EPA to issue
Determined by EPA
Determined by EPA
1990 GHG
1990 GHG
Determined by EPA;
Determined by EPA;
No specific
No specific
No specific
No specific
Directs EPA to
Directs EPA to
Jeffords
Jeffords
regulations to meet GHG
regulations to meet GHG
levels by
levels by
allowances to covered
allowances to covered
provision
provision
provision;
provision;
issue CO2
issue CO2
July 20, 2006
July 20, 2006
emissions goals; may include
emissions goals; may include
2020; 80%
2020; 80%
entities; remaining
entities; remaining
allowances may
allowances may
emissions
emissions
a market-based approach
a market-based approach
below1990
below1990
allowances to
allowances to
be allotted to
be allotted to
standards for
standards for
levels by
levels by
households,
households,
companies that
companies that
vehicles and
vehicles and
2050
2050
communities, and other
communities, and other
experience
experience
CO2 emissions
CO2 emissions
groups for various
groups for various
disproportionate
disproportionate
standards for
standards for
objectives
objectives
impacts from
impacts from
new power
new power
lower-carbon
lower-carbon
plants, create
plants, create
economy
economy
low-carbon
low-carbon
electricity electricity
generation generation
standards and standards and
trading trading
program, program,
promulgate promulgate
CRS-
CRS-
1516
Bill
Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
electricity
electricity
efficiency efficiency
standards, and standards, and
establish establish
renewable renewable
energy energy
portfolio portfolio
standards standards
S. 4039
S. 4039
Cap-and-trade system for
Cap-and-trade system for
Determined by EPA
Determined by EPA
1990 GHG
1990 GHG
Determined by the
Determined by the
No specific
No specific
No specific
No specific
No specific
No specific
Kerry
Kerry
GHG emissions
GHG emissions
through a rulemaking
through a rulemaking
levels for
levels for
President; Congress
President; Congress
provision
provision
provision
provision
provision
provision
Sept. 29, 2006
Sept. 29, 2006
process
process
covered
covered
may enact alternative
may enact alternative
sources by
sources by
plan within one year
plan within one year
2020
2020
Source: Prepared by CRS. Prepared by CRS.
CRS-
CRS-
1617
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,
will wil
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,
will wil 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-
CRS-
1718
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
generators by increases: by 2036,
generators by increases: by 2036,
international
international
2020
2020
100% sold via
100% sold via
credits
credits
auction; activities
auction; activities
funded by auction funded by auction
revenues include revenues include
technology technology
development and development and
energy efficiency energy efficiency
H.R. 620
H.R. 620
Cap-and-trade
Cap-and-trade
Electric power,
Electric power,
1990 GHG
1990 GHG
Determined by EPA
Determined by EPA
Up to 15% of
Up to 15% of
No specific
No specific
No specific provision
No specific provision
Olver
Olver
system for GHG
system for GHG
industrial, or
industrial, or
levels for
levels for
allowance
allowance
provision
provision
Jan. 22, 2007
Jan. 22, 2007
emissions from
emissions from
commercial entities that covered
commercial entities that covered
submission can
submission 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 and/or
domestic and/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
offsets
transportation use that,
transportation use that,
emissions
emissions
when combusted,
when combusted,
will wil
from non-
from non-
emit over 10,000
emit over 10,000
covered
covered
mtCO2e annually; and
mtCO2e annually; and
sources
sources
any importer or
any importer or
producer of HFCs, producer of HFCs,
PFCs, or SF6 that, when PFCs, or SF6 that, when
used, used,
will wil emit over emit over
10,000 mtCO2e 10,000 mtCO2e
S. 485
S. 485
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
No specific provision
No specific provision
Kerry
Kerry
system for GHG
system for GHG
through a rulemaking
through a rulemaking
levels for
levels for
President; Congress
President; Congress
provision
provision
provision
provision
Feb. 1, 2007
Feb. 1, 2007
emissions
emissions
process
process
covered
covered
may enact
may enact
sources by
sources by
alternative plan
alternative plan
2020
2020
within one year
within one year
CRS-
CRS-
1819
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
pollutantspol utants (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
dollarsdol ars) )
CRS-
CRS-
1920
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
payroll payrol 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-
CRS-
2021
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,
will wil
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,
will wil
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
billionbil ion 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-
CRS-
2122
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
billionbil ion 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-
CRS-
2223
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
relief measures if
relief measures if
than 5,000 tons of coal
than 5,000 tons of coal
distributed in 2012
distributed in 2012
satisfy an
satisfy an
products to the
products to the
necessary
necessary
annually; natural gas
annually; natural gas
(adjusted in future
(adjusted in future
additional 15%
additional 15%
United States
United States
processing plants or
processing plants or
years) as
years) as
followsfol ows: :
Least developed
Least developed
importers (including
importers (including
38% of allowances
38% of allowances
nations or those
nations or those
LNG); or facilities that
LNG); or facilities that
to covered electric
to covered electric
that contribute
that contribute
emit more than 10,000
emit more than 10,000
utilities, industrial
utilities, industrial
no more than
no more than
mtCO2e of HFCs
mtCO2e of HFCs
facilities, and co-ops
facilities, and co-ops
0.5% of global
0.5% of global
annually as a byproduct
annually as a byproduct
emissions are
emissions are
of HFC production
of HFC production
10.5% to states for
10.5% to states for
conservation, extra conservation, extra
excluded
excluded
reductions, and
reductions, and
other activities other activities
7.5% for various 7.5% for various
sequestration sequestration
activities activities
11% allocated for 11% allocated for
electricity and electricity and
natural gas natural gas
consumer assistance consumer assistance
5% for early 5% for early
reductions reductions
0.5% for tribal 0.5% for tribal
governments governments
1% for methane 1% for methane
reduction projects reduction projects
21.5% (plus an early 21.5% (plus an early
auction of 5%) auction of 5%)
auctioned to fund auctioned to fund
technology technology
deployment, carbon deployment, carbon
capture and storage, capture and storage,
CRS-
CRS-
2324
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
billionbil ion 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,
will wil 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
followsfol ows: :
that contribute
that contribute
will wil 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,
will wil 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
geologicallygeological y
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-
CRS-
2425
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
billionbil ion
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
followingfol owing: :
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 which goes
towardstoward
no more than
no more than
CRS-
CRS-
2526
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
LNG); or, facilities that
LNG); or, facilities that
providing health
providing health
0.5% of global
0.5% of global
emit more than 10,000
emit more than 10,000
insurance coverage,
insurance coverage,
emissions are
emissions are
mtCO2e of HFCs
mtCO2e of HFCs
the remainder for
the remainder for
excluded
excluded
annually as a byproduct
annually as a byproduct
rebates and tax
rebates and tax
of HFC production
of HFC production
relief)
relief)
15% of revenues for 15% of revenues for
deficit reduction deficit reduction
11.4% for 11.4% for
international international
activities activities
7.5% for energy 7.5% for energy
efficiency efficiency
7% for natural 7% for natural
resource adaptation resource adaptation
7% for green energy 7% for green energy
research research
4% for worker 4% for worker
assistance assistance
3% for forestry and 3% for forestry and
agricultural activities agricultural activities
2.7% for states and 2.7% for states and
tribes tribes
2% for 2% for
transportation transportation
alternatives alternatives
1% for early action 1% for early action
0.4% for education 0.4% for education
Source: Prepared by CRS. Prepared by CRS.
CRS-
CRS-
2627
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
payroll payrol 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
billionbil ion
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-
CRS-
2728
Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
price path
price path
entities by
entities by
auction revenues is
auction revenues is
between 2012
between 2012
2020
2020
not specified
not specified
and 2019
and 2019
H.R. 1683
H.R. 1683
Hybrid cap/tax
Hybrid cap/tax
Coal producers,
Coal producers,
25% below
25% below
Establishes trust
Establishes trust
No specific
No specific
Department of
Department of
No specific provision
No specific provision
McDermott
McDermott
system for GHG
system for GHG
petroleum refineries;
petroleum refineries;
2005 GHG
2005 GHG
fund that would
fund that would
provision
provision
the Treasury
the Treasury
Mar. 24, 2009
Mar. 24, 2009
emissions:
emissions:
producers of other
producers of other
emissions by
emissions by
receive
receive
imposes a GHG
imposes a GHG
covered persons
covered persons
GHG emission
GHG emission
2020
2020
appropriations equal
appropriations equal
emission permit
emission permit
must purchase
must purchase
substances (including
substances (including
to revenue received
to revenue received
equivalency fee
equivalency fee
an emission
an emission
natural gas, among
natural gas, among
by selling emission
by selling emission
on imported
on imported
permit from the
permit from the
others); importers of
others); importers of
permits
permits
carbon-intensive
carbon-intensive
Department of
Department of
GHG emission
GHG emission
Precise use of the
Precise use of the
goods, including
goods, including
the Treasury
the Treasury
substances
substances
revenue is not
revenue is not
steel, aluminum,
steel, aluminum,
when a “GHG
when a “GHG
specified
specified
and paper
and paper
emission
emission
substance” is
substance” is
produced or produced or
enters the enters the
United States; United States;
permits may not permits may not
be sold or be sold or
exchanged; price exchanged; price
for emission for emission
permits based on permits based on
achieving annual achieving annual
emission targets emission targets
H.R. 1862
H.R. 1862
Cap-and-trade
Cap-and-trade
Person who makes the
Person who makes the
25% below
25% below
100% of allowances
100% of allowances
No specific
No specific
Department of
Department of
No specific provision
No specific provision
Van
Van
HollenHol en
system for CO2
system for CO2
first sale in United
first sale in United
2005 CO2
2005 CO2
sold via auction;
sold via auction;
provision
provision
the Treasury
the Treasury
Apr. 1, 2009
Apr. 1, 2009
emissions from
emissions from
States of coal, oil,
States of coal, oil,
emissions by
emissions by
proceeds used to
proceeds used to
imposes a
imposes a
multiple sectors
multiple sectors
natural gas, and any
natural gas, and any
2020
2020
fund consumer
fund consumer
carbon
carbon
fossil-fuel-derived
fossil-fuel-derived
dividend payments;
dividend payments;
equivalency fee
equivalency fee
products used as a
products used as a
each month, every
each month, every
on imported
on imported
combustible fuel
combustible fuel
person with a Social
person with a Social
carbon-intensive
carbon-intensive
Security number
Security number
goods, including
goods, including
CRS-
CRS-
2829
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
payroll payrol
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
followingfol owing
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-
CRS-
2930
Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
the House of
up to 3.5% to
up to 3.5% to
EPA, covered
EPA, covered
from a covered
from a covered
Representatives, ,
merchant coal units;
merchant coal units;
entities may use entities may use
country
country
coordinated by
coordinated by
2% to petroleum
2% to petroleum
unlimited amount
unlimited amount
Exemptions are
Exemptions are
Mark Holt and
Mark Holt and
refineries plus
refineries plus
of international
of international
provided for (1)
provided for (1)
Gene Whitney
Gene Whitney
0.25% for small
0.25% for small
allowances from
allowances from
least developed
least developed
business refineries;
business refineries;
“qualifying
“qualifying
countries, (2)
countries, (2)
up to 1.5% for
up to 1.5% for
programs”
programs”
countries that
countries that
certain long-term
certain long-term
emit less than
emit less than
power contract
power contract
0.5% of global
0.5% of global
operators
operators
GHG emissions,
GHG emissions,
7.1% to states to
7.1% to states to
and (3) countries
and (3) countries
support renewable
support renewable
meeting specific
meeting specific
energy and energy
energy and energy
criteria
criteria
efficiency efforts
efficiency efforts
6% to promote 6% to promote
technological technological
advances advances
5% to reduce 5% to reduce
international international
deforestation deforestation
0.2% for deficit 0.2% for deficit
reduction reduction
5% to further other 5% to further other
objectives objectives
S. 1733
S. 1733
Cap-and-trade
Cap-and-trade
Electricity generators,
Electricity generators,
20% below
20% below
Emission allowance
Emission allowance
In 2016,
In 2016,
Trade-exposed,
Trade-exposed,
Establishes a separate
Establishes a separate
Kerry-Boxer
Kerry-Boxer
system for GHG
system for GHG
various fuel producers
various fuel producers
2005
2005
value is distributed
value is distributed
approximately
approximately
carbon-intensive
carbon-intensive
cap-and-trade program
cap-and-trade program
Sept. 30, 2009
Sept. 30, 2009
emissions from
emissions from
and importers,
and importers,
emissions
emissions
in the
in the
followingfol owing
35% of an entity’s
35% of an entity’s
industries to
industries to
that controls HFCs
that controls HFCs
Reported by the
multiple sectors
multiple sectors
fluorinated gas
fluorinated gas
from covered manner in 2016:
from covered manner in 2016:
allowance
allowance
receive
receive
Committee on
producers and
producers and
sources by
sources by
25.8% (at minimum)
25.8% (at minimum)
submission can
submission can
allowances at no
allowances at no
Environment and
importers, geological
importers, geological
2020
2020
to electricity LDCs;
to electricity LDCs;
comprise offsets;
comprise offsets;
cost; in addition,
cost; in addition,
Public Works (a
sequestration sites,
sequestration sites,
up to 75% of an
up to 75% of an
the
the
bill bil states: states:
various industrial
various industrial
entity’s offsets
entity’s offsets
CRS-
CRS-
3031
Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
“Manager’s
sources, and LDCs that
sources, and LDCs that
0.94% for small
0.94% for small
can come from
can come from
“It is the sense
“It is the sense
Amendment” in
deliver natural gas
deliver natural gas
electric LDCs
electric LDCs
domestic sources
domestic sources
of the Senate
of the Senate
the nature of
Coverage is phased in
Coverage is phased in
7.7% to natural gas
7.7% to natural gas
and up to 25%
and up to 25%
that this Act
that this Act
will wil
substitute) on Nov.
by category so that all
by category so that all
LDCs
LDCs
from international contain a trade
from international contain a trade
5, 2009
of the above are under
of the above are under
sources
sources
title that
title that
will wil
1.3% to states for
1.3% to states for
the cap in 2016
the cap in 2016
include a border
include a border
home-heating oil
home-heating oil
Unless otherwise
Unless otherwise
measure that is
measure that is
consumers
consumers
determined by
determined by
EPA, unlimited EPA, unlimited
consistent with
consistent with
12.9% directly to
12.9% directly to
use of
use of
our international
our international
low-income
low-income
international
international
obligations and
obligations and
consumers
consumers
allowances from
allowances from
designed to
designed to
12.1% to energy-
12.1% to energy-
“qualifying
“qualifying
work in
work in
intensive, trade-
intensive, trade-
programs”
programs”
conjunction with
conjunction with
exposed industries
exposed industries
provisions that
provisions that
up to 3.0% to
up to 3.0% to
allocate
allocate
merchant coal units
merchant coal units
allowances to
allowances to
energy-intensive energy-intensive
0.64% to petroleum
0.64% to petroleum
and trade-
and trade-
refineries plus
refineries plus
exposed
exposed
0.86% for small
0.86% for small
industries”
industries”
business refineries
business refineries
and 0.43% for and 0.43% for
medium refineries medium refineries
up to 1.3% for up to 1.3% for
certain long-term certain long-term
power contract power contract
operators operators
5.97% to states to 5.97% to states to
support renewable support renewable
energy and energy energy and energy
efficiency efforts efficiency efforts
CRS-
CRS-
3132
Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
5.6% to promote
5.6% to promote
technological technological
advances advances
1.92% for GHG 1.92% for GHG
reductions in the reductions in the
transportation transportation
sector sector
10.3% for deficit 10.3% for deficit
reduction reduction
8% to further other 8% to further other
objectives objectives
S. 2877
S. 2877
Hybrid cap/tax
Hybrid cap/tax
Fossil fuel producers
Fossil fuel producers
20% below
20% below
All carbon shares
All carbon shares
Offsets are not
Offsets are not
Treasury may
Treasury may
No specific provision
No specific provision
Cantwell
Cantwell
system for CO2
system for CO2
(e.g., mines, wells) and
(e.g., mines, wells) and
2005 GHG
2005 GHG
sold in auctions
sold in auctions
allowed for
allowed for
impose fees for
impose fees for
Dec. 11, 2009
Dec. 11, 2009
emissions:
emissions:
importers who
importers who
levels from all Subject to the
levels from all Subject to the
compliance
compliance
the “production
the “production
covered entities
covered entities
introduce “fossil
introduce “fossil
sources by
sources by
appropriations
appropriations
purposes
purposes
process carbon”
process carbon”
submit “carbon
submit “carbon
carbon” into the United 2020
carbon” into the United 2020
process, 75% of the
process, 75% of the
associated with
associated with
shares” for CO2
shares” for CO2
States economy
States economy
revenue would be
revenue would be
commodities
commodities
emissions
emissions
distributed monthly
distributed monthly
imported into
imported into
associated with
associated with
in non-taxable
in non-taxable
the United
the United
the use of the
the use of the
dividends to all
dividends to all
States
States
fossil fuels
fossil fuels
legally residing
legally residing
Trading of
Trading of
individuals in the
individuals in the
carbon shares is
carbon shares is
United States
United States
restricted to a
restricted to a
Subject to the
Subject to the
dedicated
dedicated
appropriations
appropriations
exchange
exchange
process, 25% could
process, 25% could
established by
established by
be used to support
be used to support
Treasury
Treasury
a myriad of policy
a myriad of policy
Price ceiling for
Price ceiling for
objectives, including
objectives, including
carbon shares:
carbon shares:
worker transition
worker transition
initially at
initially at
assistance,
assistance,
$21/tCO2 in
$21/tCO2 in
adaptation,
adaptation,
CRS-
CRS-
3233
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
followingfol owing
35% of an entity’s
35% of an entity’s
industries to
industries to
that controls HFC
that controls HFC
(considered by
(considered by
multiple 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-
CRS-
3334
Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
2% to states to
2% to states to
meeting the
meeting the
support renewable
support renewable
specific criteria
specific criteria
energy and energy
energy and energy
efficiency efforts efficiency efforts
4% to promote 4% to promote
technological technological
advances advances
9.2% to support 9.2% to support
transportation transportation
infrastructure and infrastructure and
efficiency efficiency
6.75% for deficit 6.75% for deficit
reduction reduction
1.5% auctioned to 1.5% auctioned to
help mitigate against help mitigate against
high allowance high allowance
prices prices
Source: Prepared by CRS. Prepared by CRS.
CRS-
CRS-
3435
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
will wil be be
expected
expected
subject to a
subject to a
emissions
emissions
fee—determined
fee—determined
associated with
associated with
by the Secretary
by the Secretary
combustion or
combustion or
of the
of the
use of covered
use of covered
Treasury—that
Treasury—that
material (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-
CRS-
3536
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
Permits cannot
Permits cannot
comparable
comparable
be sold or
be sold or
products incur
products incur
traded
traded
due to the
due to the
Price floor and
Price floor and
carbon price
carbon price
price ceiling (i.e.,
price ceiling (i.e.,
Exporters of
Exporters of
price
price
collarcol ar), ),
carbon-intensive
carbon-intensive
ranges between
ranges between
goods may
goods may
$6.25 and $18.75
$6.25 and $18.75
receive a
receive a
in 2015
in 2015
payment related
payment related
to the increased to the increased
costs of inputs costs of inputs
(i.e., fossil fuels) (i.e., fossil fuels)
subject to the subject to the
fee fee
Source: Prepared by CRS. Prepared by CRS.
CRS-
CRS-
3637
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
pollutionpol ution--
leaks in natural gas
leaks in natural gas
the
the
followingfol owing
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
billionbil ion 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
billionbil ion to to
support the support the
Weatherization Weatherization
Assistance Program Assistance Program
$1 $1
billionbil ion for job for job
training and training and
transition assistance transition assistance
$2 $2
billionbil ion for for
Advanced Research Advanced Research
CRS-
CRS-
3738
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
Projects Agency-
Projects Agency-
Energy Energy
Any remaining funds Any remaining funds
in the trust fund are in the trust fund are
applied to deficit applied to deficit
reduction reduction
Revenues from
the carbon
equivalency fee
on imports:
50% to EPA to 50% to EPA to
distribute to distribute to
state/local programs state/local programs
for adaptation, for adaptation,
infrastructure infrastructure
improvement, and improvement, and
environmental environmental
protectionprotection
50% to the 50% to the
Department of Department of
Transportation to Transportation to
support state/local support state/local
critical critical
infrastructure and infrastructure and
transportation transportation
projects that reduce projects that reduce
vehicular traffic vehicular traffic
S. 2940
S. 2940
Fee on fossil
Fee on fossil
Fee applies to coal at
Fee applies to coal at
Fee continues Fee revenue used to No specific
Fee continues Fee revenue used to No specific
Imports of
Imports of
Separate fee for non-
Separate fee for non-
Whitehouse
Whitehouse
fuels based on
fuels based on
mines, petroleum at
mines, petroleum at
until national
until national
create the American provisions
create the American provisions
carbon-intensive
carbon-intensive
CO2 GHG emissions
CO2 GHG emissions
Nov. 19, 2014
Nov. 19, 2014
their carbon
their carbon
refineries, natural gas at
refineries, natural gas at
GHG
GHG
Opportunity Fund,
Opportunity Fund,
goods subject to
goods subject to
at facilities that (1)
at facilities that (1)
processors, imported
processors, imported
emissions are
emissions are
appropriations from
appropriations from
a fee—
a fee—
are subject to GHG
are subject to GHG
CRS-
CRS-
3839
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
content and
content and
fossil fuels, and facilities
fossil fuels, and facilities
80% below
80% below
the fund could
the fund could
determined by
determined by
reporting
reporting
certain facilities
certain facilities
that (1) are subject to
that (1) are subject to
2005 levels
2005 levels
support the
support the
the Secretary of
the Secretary of
requirements in 40
requirements in 40
Fee set at
Fee set at
GHG reporting
GHG reporting
followingfol owing
the Treasury—
the Treasury—
C.F.R. Part 98 and (2)
C.F.R. Part 98 and (2)
$42/mtCO
$42/mtCO
requirements in 40
requirements in 40
(percentages not
(percentages not
that is equivalent emit more than
that is equivalent emit more than
2
2
emissions in
emissions in
C.F.R. Part 98 and (2)
C.F.R. Part 98 and (2)
specified):
specified):
to the difference
to the difference
25,000 mtCO2e (not
25,000 mtCO2e (not
2015, increasing
2015, increasing
emit more than 25,000
emit more than 25,000
income assistance
income assistance
in (1) costs
in (1) costs
including CO2
including CO2
by 2% plus
by 2% plus
tons of CO2 annually
tons of CO2 annually
to low-income
to low-income
domestic
domestic
emissions)
emissions)
inflation each
inflation each
households facing
households facing
producers of
producers of
Additional fee for
Additional fee for
year
year
disproportionate
disproportionate
comparable
comparable
methane emissions
methane emissions
energy costs
energy costs
products incur
products incur
from fossil fuel
from fossil fuel
due to the
due to the
tax cut offsets
tax cut offsets
extraction,
extraction,
carbon price and distribution, and
carbon price and distribution, and
Social Security
Social Security
(2) the
(2) the
combustion
combustion
benefit increases
benefit increases
comparable
comparable
tuition assistance-
tuition assistance-
costs (e.g., GHG
costs (e.g., GHG
infrastructure
infrastructure
fees) imposed by
fees) imposed by
improvements
improvements
the nation
the nation
dividends to
dividends to
exporting the
exporting the
individuals and
individuals and
material
material
families
families
Exporters of
Exporters of
transition assistance
transition assistance
carbon-intensive
carbon-intensive
to workers in
to workers in
goods may
goods may
energy-intensive
energy-intensive
receive a refund
receive a refund
industries
industries
related to the
related to the
increased costs increased costs
climate mitigation
climate mitigation
of inputs (i.e.,
of inputs (i.e.,
and adaptation
and adaptation
fossil fuels)
fossil fuels)
national debt
national debt
subject to the
subject to the
reduction
reduction
fee
fee
Source: Prepared by CRS. Prepared by CRS.
CRS-
CRS-
3940
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
will wil be be
expected
expected
subject to a
subject to a
emissions
emissions
fee—determined
fee—determined
associated with
associated with
by the Secretary
by the Secretary
fossil 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-
CRS-
4041
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-
CRS-
4142
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
bill bil 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
bill bil 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
billionbil ion 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-
CRS-
4243
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
billionbil ion metric metric
collectedcol ected 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
pollutingpol uting substance, substance,
20% below
20% below
permanent resident;
permanent resident;
pollutionpol ution--
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-
till til
thereafter by 5%
thereafter by 5%
Treasury
Treasury
combustion
combustion
system; the rebates
system; the rebates
farming practices and
farming practices and
plus inflation
plus inflation
are phased out and
are phased out and
a nitrogen uptake
a nitrogen uptake
eliminated 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-
CRS-
4344
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
used to support
used to support
other objectives, other objectives,
including energy including energy
efficiency efficiency
H.R. 4283
H.R. 4283
Tax on fossil
Tax on fossil
Tax imposed on
Tax imposed on
Tax ceases if
Tax ceases if
Tax revenue used
Tax revenue used
No specific
No specific
Imports of
Imports of
No specific
No specific
McNerney
McNerney
fuels based on
fuels based on
producers, miners, or
producers, miners, or
life-cycle
life-cycle
to provide quarterly provisions
to provide quarterly provisions
goods containing
goods containing
provisions provisions
Dec. 17, 2015
Dec. 17, 2015
their carbon
their carbon
importers of fossil fuels
importers of fossil fuels
emissions
emissions
dividends to every
dividends to every
or produced
or produced
content “of the
content “of the
from fossil
from fossil
person with a Social
person with a Social
using fossil fuels
using fossil fuels
life cycle
life cycle
fuels reach
fuels reach
Security number
Security number
subject to a
subject to a
emissions”
emissions”
50% below
50% below
carbon
carbon
Tax starts in
Tax starts in
2005 levels
2005 levels
equivalency
equivalency
2016 at $15 per
2016 at $15 per
(as
(as
fee—determined
fee—determined
metric ton of
metric ton of
determined
determined
by the Secretary
by the Secretary
CO
CO
by the
by the
of the
of the
2 emissions;
2 emissions;
tax rate
tax rate
Secretary of
Secretary of
Treasury—that
Treasury—that
increases
increases
the Treasury
the Treasury
is equal to the
is equal to the
annually by
annually by
in
in
cost that U.S.
cost that U.S.
$10/ton; if
$10/ton; if
consultation
consultation
producers of a
producers of a
emission targets
emission targets
with EPA)
with EPA)
comparable
comparable
are met, tax
are met, tax
good incur as a
good incur as a
ceases to apply
ceases to apply
result of the U.S.
result of the U.S.
for four years;
for four years;
carbon tax; this
carbon tax; this
tax reapplies if
tax reapplies if
fee expires if the
fee expires if the
subsequent
subsequent
exporting nation
exporting nation
targets not met
targets not met
implements
implements
equivalent equivalent
measures or if measures or if
an international an international
agreement agreement
requires requires
equivalent equivalent
measures measures
CRS-
CRS-
4445
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
Exporters of
Exporters of
fossil fuels or fossil fuels or
materials that materials that
used fossil fuels used fossil fuels
during during
production or production or
manufacture may manufacture may
receive a tax receive a tax
refund related to refund related to
the increased the increased
costs of inputs costs of inputs
(i.e., fossil fuels) (i.e., fossil fuels)
subject to the subject to the
carbon tax carbon tax
Source: Prepared by CRS. Prepared by CRS.
CRS-
CRS-
4546
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
bill bil 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
bill bil 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-
CRS-
4647
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
billionbil ion in annual in annual
equivalent to the
equivalent to the
that (1) are
that (1) are
Fee set at
Fee set at
reporting
reporting
cost-mitigation grants to states to
cost-mitigation grants to states to
difference in (1)
difference in (1)
subject to
subject to
$49/ton 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
bill bil 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-
CRS-
4748
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
billionbil ion 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
followingfol owing
intensive goods;
intensive goods;
$49/mtCO
$49/mtCO
gas
gas
infrastructure programs:
infrastructure programs:
the fee
the fee
will wil be be
2 in
2 in
CRS-
CRS-
4849
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
2019, increasing
2019, increasing
$50
$50
billionbil ion (plus the Highway Trust (plus the Highway Trust
equivalent to the
equivalent to the
by 2% plus
by 2% plus
Fund shortfall) for highway (80%)
Fund shortfall) for highway (80%)
cost that domestic
cost that domestic
inflation each
inflation each
and mass transit (20%);
and mass transit (20%);
producers incur
producers incur
year
year
$5
$5
billionbil ion for the Transportation for the Transportation
due to the carbon
due to the carbon
Investments Generating Economic
Investments Generating Economic
tax; this fee
tax; this fee
Recovery program;
Recovery program;
expires if the
expires if the
$3
$3
billionbil ion for aviation; for aviation;
exporting nation
exporting nation
$5
$5
billionbil ion for passenger rail; for passenger rail;
implements
implements
$6
$6
billionbil ion for harbors, waterways, for harbors, waterways,
equivalent
equivalent
flood protection, and dams;
flood protection, and dams;
measures or if an
measures or if an
$6
$6
billionbil ion for wastewater and for wastewater and
international
international
drinking water; and
drinking water; and
agreement
agreement
$3
$3
billionbil ion for broadband for broadband
requires equivalent
requires equivalent
In addition, the trust fund provides:
In addition, the trust fund provides:
measures
measures
$5
$5
billionbil ion annually for worker annually for worker
transition assistance in the fossil transition assistance in the fossil
fuel industries; and fuel industries; and
12.5% for an energy refund 12.5% for an energy refund
program that would provide program that would provide
monthly payments to households monthly payments to households
with incomes up to 150% of with incomes up to 150% of
poverty line poverty line
Any remaining revenues supports a Any remaining revenues supports a
consumer tax rebate for consumer tax rebate for
households with incomes up to households with incomes up to
350% of the poverty line 350% of the poverty line
S. 2352
S. 2352
Cap-and-trade
Cap-and-trade
Covered materials
Covered materials
2020 limit:
2020 limit:
Auction revenue distributed via
Auction revenue distributed via
No specific
No specific
Unless an
Unless an
EPA directed
EPA directed
Van
Van
HollenHol en
system for CO2
system for CO2
include crude oil, coal,
include crude oil, coal,
permits sold
permits sold
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
equal to 20%
equal to 20%
persons with a valid Social Security
persons with a valid Social Security
has implemented
has implemented
regulations to
regulations to
fossil fuel
fossil fuel
products derived from
products derived from
below 2005
below 2005
number
number
equivalent
equivalent
address other
address other
combustion
combustion
measures, imports
measures, imports
GHG
GHG
CRS-
CRS-
4950
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%
will wil 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
will wil 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-
CRS-
5051
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
bill bil 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
billionbil ion 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-
CRS-
5152
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
bill bil 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
billionbil ion 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-
CRS-
5253
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
followingfol owing objectives objectives
Secretary of the
Secretary of the
regulations for
regulations for
and sources
and sources
industrial sectors that
industrial sectors that
rate if annual,
rate if annual,
(“as provided in appropriations
(“as provided in appropriations
Treasury—that is
Treasury—that is
stationary
stationary
Tax starts at
Tax starts at
emit more 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
millionmil ion 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-
CRS-
5354
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-
CRS-
5455
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
metric ton of
metric ton of
fuels below
fuels below
in 2019; remaining revenues would
in 2019; remaining revenues would
Treasury—that is
Treasury—that is
CO2 emissions;
CO2 emissions;
2005 levels:
2005 levels:
be allocated as
be allocated as
followsfol ows: :
equal to the cost
equal to the cost
tax rate increases
tax rate increases
80% used to provide quarterly
80% used to provide quarterly
that U.S.
that U.S.
annually by
annually by
2025: 30%
2025: 30%
dividends to every person with a
dividends to every person with a
producers of a
producers of a
$10/ton; if
$10/ton; if
2030: 40%
2030: 40%
Social Security number
Social Security number
comparable good
comparable good
emission targets
emission targets
2035: 50%
2035: 50%
incur as a result of
incur as a result of
are met, tax
are met, tax
20% used to support a range of
20% used to support a range of
2040: 70%
2040: 70%
the U.S. carbon
the U.S. carbon
ceases to apply
ceases to apply
objectives, including:
objectives, including:
2050: 80%
2050: 80%
tax; this fee
tax; this fee
for four years;
for four years;
-worker transition assistance
-worker transition assistance
expires if the
expires if the
tax reapplies if
tax reapplies if
-rural energy assistance
-rural energy assistance
exporting nation
exporting nation
subsequent
subsequent
-technology-neutral research and
-technology-neutral research and
implements
implements
targets not met
targets not met
development
development
equivalent
equivalent
-electric grid innovation
-electric grid innovation
measures or if an
measures or if an
-infrastructure resilience
-infrastructure resilience
international
international
-energy efficiency and conservation
-energy efficiency and conservation
agreement
agreement
requires equivalent requires equivalent
measures measures
Exporters of fossil Exporters of fossil
fuels or materials fuels or materials
that used fossil that used fossil
fuels during fuels during
production or production or
manufacture may manufacture may
receive a tax receive a tax
refund related to refund related to
the increased the increased
costs of inputs costs of inputs
(i.e., fossil fuels) (i.e., fossil fuels)
subject to the subject to the
carbon tax carbon tax
CRS-
CRS-
5556
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
millionmil ion
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-
CRS-
5657
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Fee set at
Fee set at
and importers, natural
and importers, natural
combustion
combustion
fund are available (after
fund are available (after
Secretary of the
Secretary of the
fossil fuel
fossil fuel
$15/mtCO2e
$15/mtCO2e
gas deliverers, and
gas deliverers, and
emissions;
emissions;
administrative expenses) to
administrative expenses) to
Treasury—that is
Treasury—that is
emissions
emissions
emissions in
emissions in
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
Directs EPA to
Directs EPA to
2019, increasing
2019, increasing
processors
processors
annual
annual
eligible individuals (i.e., persons
eligible individuals (i.e., persons
excess of(1) GHG
excess of(1) GHG
evaluate
evaluate
by $10 each year
by $10 each year
reductions of
reductions of
with a Social Security number or
with a Social Security number or
emissions from
emissions from
effectiveness of
effectiveness of
If emission
If emission
5% of 2015
5% of 2015
taxpayer identification number);
taxpayer identification number);
production
production
fee program in
fee program in
reduction targets
reduction targets
levels (253
levels (253
adults get one share and children
adults get one share and children
multiplied by the
multiplied by the
meeting
meeting
are not met, fee
are not met, fee
millionmil ion
receive a half-share
receive a half-share
relevant U.S.
relevant U.S.
emission
emission
increases by $15;
increases by $15;
mtCO2e)
mtCO2e)
emissions fee over
emissions fee over
reduction
reduction
if targets met, fee
if targets met, fee
between 2022
between 2022
(2) the total
(2) the total
targets; if
targets; if
does not increase
does not increase
and 2029; this
and 2029; this
foreign product
foreign product
targets are
targets are
equates to a
equates to a
cost;
cost;
Provides a rebate
Provides a rebate
met, EPA may
met, EPA may
50% reduction
50% reduction
for fuels used on
for fuels used on
Exporters of
Exporters of
review existing
review existing
in 2030
in 2030
a farm
a farm
carbon-intensive
carbon-intensive
regulations on
regulations on
compared to
compared to
products (and
products (and
fossil fuel
fossil fuel
2005 levels; less
2005 levels; less
covered fuels) may combustion
covered fuels) may combustion
stringent
stringent
receive a refund
receive a refund
and fluorinated
and fluorinated
reductions in
reductions in
under an
under an
GHG
GHG
subsequent
subsequent
analogous formula
analogous formula
emissions
emissions
years
years
Source: Prepared by CRS. Prepared by CRS.
CRS-
CRS-
5758
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
millionmil ion 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
millionmil ion 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-
CRS-
5859
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
S. 940
S. 940
Cap-and-trade
Cap-and-trade
Covered materials
Covered materials
2020 limit: permits
2020 limit: permits
Auction revenue distributed
Auction revenue distributed
No specific
No specific
Unless an
Unless an
EPA directed to
EPA directed to
Van
Van
HollenHol en
system for CO2
system for CO2
include crude oil,
include crude oil,
sold equal to 12.5%
sold equal to 12.5%
via quarterly dividend
via quarterly dividend
provisions
provisions
exporting nation
exporting nation
promulgate
promulgate
Mar. 28, 2019
Mar. 28, 2019
emissions from
emissions from
coal, natural gas,
coal, natural gas,
below 2005 U.S. CO2
below 2005 U.S. CO2
payments to all persons with a
payments to all persons with a
has implemented
has implemented
regulations to
regulations to
This proposal is
fossil fuel
fossil fuel
and products
and products
emissions
emissions
valid Social Security number
valid Social Security number
equivalent
equivalent
address other GHG
address other GHG
identical to H.R. H.R.
combustion
combustion
derived from these
derived from these
2025 limit: permits
2025 limit: permits
measures, imports
measures, imports
emissions that are
emissions that are
1960
1960
(Beyer)
Permits sold
Permits sold
materials used for
materials used for
sold equal to 30%
sold equal to 30%
of carbon-intensive
of carbon-intensive
not covered by the
not covered by the
through
through
combustion
combustion
below 2005 U.S. CO
below 2005 U.S. CO
goods
goods
will wil be be
permit program;
permit program;
2
2
quarterly
quarterly
Covered entities
Covered entities
emissions
emissions
subject to a fee—
subject to a fee—
emissions “directly
emissions “directly
auctions by the
auctions by the
include petroleum
include petroleum
determined by the
determined by the
attributable to the
attributable to the
2030 limit: permits
2030 limit: permits
Department of
Department of
refineries and
refineries and
Secretary of the
Secretary of the
production of animals
production of animals
sold equal to 50%
sold equal to 50%
the Treasury
the Treasury
importers, coal
importers, coal
Treasury—that is
Treasury—that is
for food or food
for food or food
below 2005 U.S. CO2
below 2005 U.S. CO2
equivalent to the
equivalent to the
products” are
products” are
Auction revenue
Auction revenue
mines and
mines and
emissions
emissions
costs domestic
costs domestic
excluded
excluded
distributed to
distributed to
importers, and
importers, and
2040 limit: permits
2040 limit: permits
producers of
producers of
individuals, often
individuals, often
natural gas
natural gas
sold equal to 80%
sold equal to 80%
comparable
comparable
described as a
described as a
deliverers (as
deliverers (as
below 2005 U.S. CO2
below 2005 U.S. CO2
products incur due
products incur due
“cap and
“cap and
reported on Energy
reported on Energy
emissions
emissions
to the carbon price
to the carbon price
dividend”
dividend”
Information
Information
approach
approach
Administration
Administration
Exporters of
Exporters of
Form 176) and
Form 176) and
carbon-intensive
carbon-intensive
A permit reserve some natural gas
A permit reserve some natural gas
goods may receive
goods may receive
and borrowed
and borrowed
processors
processors
compensation for
compensation for
permits from
permits from
losses related to
losses related to
future years may
future years may
the permit system
the permit system
be used to help
be used to help
stabilize auction stabilize auction
prices prices
H.R. 1960
H.R. 1960
Cap-and-trade
Cap-and-trade
Covered materials
Covered materials
2020 limit: permits
2020 limit: permits
Auction revenue distributed
Auction revenue distributed
No specific
No specific
Unless an
Unless an
EPA directed to
EPA directed to
Beyer
Beyer
system for CO2
system for CO2
include crude oil,
include crude oil,
sold equal to 12.5%
sold equal to 12.5%
via quarterly dividend
via quarterly dividend
provisions
provisions
exporting nation
exporting nation
promulgate
promulgate
Mar. 28, 2019
Mar. 28, 2019
emissions from
emissions from
coal, natural gas,
coal, natural gas,
below 2005 U.S. CO2
below 2005 U.S. CO2
payments to all persons with a
payments to all persons with a
has implemented
has implemented
regulations to
regulations to
This proposal is
fossil fuel
fossil fuel
and products
and products
emissions
emissions
valid Social Security number
valid Social Security number
equivalent
equivalent
address other GHG
address other GHG
identical to S. 940S. 940
combustion
combustion
derived from these
derived from these
2025 limit: permits
2025 limit: permits
measures, imports
measures, imports
emissions that are
emissions that are
(Van Hollen)
Permits sold
Permits sold
materials used for
materials used for
sold equal to 30%
sold equal to 30%
of carbon-intensive
of carbon-intensive
not covered by the
not covered by the
through
through
combustion
combustion
goods
goods
will wil be be
permit program;
permit program;
CRS-
CRS-
5960
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
quarterly
quarterly
Covered entities
Covered entities
below 2005 U.S. CO2
below 2005 U.S. CO2
subject to a fee—
subject to a fee—
emissions “directly
emissions “directly
auctions by the
auctions by the
include petroleum
include petroleum
emissions
emissions
determined by the
determined by the
attributable to the
attributable to the
Department of
Department of
refineries and
refineries and
2030 limit: permits
2030 limit: permits
Secretary of the
Secretary of the
production of animals
production of animals
the Treasury
the Treasury
importers, coal
importers, coal
sold equal to 50%
sold equal to 50%
Treasury—that is
Treasury—that is
for food or food
for food or food
Auction revenue
Auction revenue
mines and
mines and
below 2005 U.S. CO
below 2005 U.S. CO
equivalent to the
equivalent to the
products” are
products” are
2
2
distributed to
distributed to
importers, and
importers, and
emissions
emissions
costs domestic
costs domestic
excluded
excluded
individuals, often
individuals, often
natural gas
natural gas
producers of
producers of
2040 limit: permits
2040 limit: permits
described as a
described as a
deliverers (as
deliverers (as
comparable
comparable
sold equal to 80%
sold equal to 80%
“cap and
“cap and
reported on Energy
reported on Energy
products incur due
products incur due
below 2005 U.S. CO2
below 2005 U.S. CO2
dividend”
dividend”
Information
Information
to the carbon price
to the carbon price
emissions
emissions
approach
approach
Administration
Administration
Exporters of
Exporters of
Form 176) and
Form 176) and
A permit reserve
A permit reserve
carbon-intensive
carbon-intensive
some natural gas
some natural gas
and borrowed
and borrowed
goods may receive
goods may receive
processors
processors
permits from
permits from
compensation for
compensation for
future years may
future years may
losses related to
losses related to
be used to help
be used to help
the permit system
the permit system
stabilize auction
stabilize auction
prices prices
S. 1128
S. 1128
Fee on fossil
Fee on fossil
Fee applies to coal
Fee applies to coal
Fee continues until
Fee continues until
The
The
bill bil provides an annual tax provides an annual tax
No specific
No specific
Imports of carbon-
Imports of carbon-
Separate fee for
Separate fee for
Whitehouse
Whitehouse
fuels based on
fuels based on
at mines, petroleum
at mines, petroleum
national GHG
national GHG
credit for each individual;
credit for each individual;
provisions
provisions
intensive goods
intensive goods
fluorinated GHGs
fluorinated GHGs
Apr. 10, 2019
Apr. 10, 2019
their carbon
their carbon
at refineries, natural
at refineries, natural
emissions are 80%
emissions are 80%
provides an equivalent benefit
provides an equivalent benefit
subject to a fee—
subject to a fee—
Separate fee for
Separate fee for
content and
content and
gas at processors,
gas at processors,
below 2005 levels
below 2005 levels
to individuals not eligible for
to individuals not eligible for
determined by the
determined by the
GHGs (other than
GHGs (other than
certain facilities
certain facilities
imported fossil fuels,
imported fossil fuels,
the tax credit
the tax credit
Secretary of the
Secretary of the
CO2 and fluorinated
CO2 and fluorinated
for GHG
for GHG
and facilities that (1)
and facilities that (1)
Provides up to $10
Provides up to $10
billionbil ion in in
Treasury—that is
Treasury—that is
gas emissions) at
gas emissions) at
emissions
emissions
are subject to GHG
are subject to GHG
annual grants to states to be
annual grants to states to be
equivalent to the
equivalent to the
facilities that (1) are
facilities that (1) are
Fee set at
Fee set at
reporting
reporting
used to
used to
difference in (1)
difference in (1)
subject to GHG
subject to GHG
$52/ton CO
$52/ton CO
requirements in 40
requirements in 40
costs domestic
costs domestic
2
2
(1) assist low-income and rural
(1) assist low-income and rural
reporting
reporting
emissions in
emissions in
C.F.R. Part 98 and
C.F.R. Part 98 and
producers of
producers of
households with energy costs,
households with energy costs,
requirements in 40
requirements in 40
2020, increasing
2020, increasing
(2) emit more than
(2) emit more than
comparable
comparable
C.F.R. Part 98 and (2)
C.F.R. Part 98 and (2)
by 6% plus
by 6% plus
25,000 tons of
25,000 tons of
(2) support job training and
(2) support job training and
products incur due
products incur due
emit more than
emit more than
inflation each
inflation each
GHGs annually
GHGs annually
worker assistance programs,
worker assistance programs,
to the carbon price 25,000 mtCO2e
to the carbon price 25,000 mtCO2e
year
year
and
and
and (2) the
and (2) the
emissions
emissions
comparable costs
comparable costs
CRS-
CRS-
6061
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 also applies to
Fee also applies to
(3) assist the state in climate
(3) assist the state in climate
(e.g., GHG fees)
(e.g., GHG fees)
Additional fee for
Additional fee for
certain industrial
certain industrial
change adaptation or transition
change adaptation or transition
imposed by the
imposed by the
GHG emissions
GHG emissions
sources, regardless
sources, regardless
to a low-carbon economy; this
to a low-carbon economy; this
nation exporting
nation exporting
(described as
(described as
of their emissions
of their emissions
amount increases annually
amount increases annually
the material
the material
“associated
“associated
output, including
output, including
Exporters of
Exporters of
emissions”) resulting
emissions”) resulting
aluminum
aluminum
energy-intensive
energy-intensive
from venting, flaring,
from venting, flaring,
production, HCFC-
production, HCFC-
goods may receive
goods may receive
and leaking across
and leaking across
22 production and
22 production and
a refund related to
a refund related to
the coal, natural gas,
the coal, natural gas,
HFC-23 destruction,
HFC-23 destruction,
the increased costs
the increased costs
and petroleum supply
and petroleum supply
and fluorinated gas
and fluorinated gas
of inputs (i.e., fossil
of inputs (i.e., fossil
chains (as determined
chains (as determined
production; this fee
production; this fee
fuels) subject to
fuels) subject to
by Secretary of the
by Secretary of the
starts as a
starts as a
the fee
the fee
Treasury)
Treasury)
percentage of the
percentage of the
fossil fuel fee and fossil fuel fee and
increases annually increases annually
S. 2284
S. 2284
Fee on fossil
Fee on fossil
Covered entities
Covered entities
Emission reduction
Emission reduction
Establishes a trust fund that
Establishes a trust fund that
Directs the
Directs the
Imports of carbon-
Imports of carbon-
Separate fee for
Separate fee for
Coons
Coons
fuels based on
fuels based on
include petroleum
include petroleum
targets apply to
targets apply to
receives appropriations equal
receives appropriations equal
Department of
Department of
intensive products
intensive products
fluorinated GHGs set
fluorinated GHGs set
July 25, 2019
July 25, 2019
their GHG
their GHG
refineries and
refineries and
emissions from
emissions from
to emission fee revenues
to emission fee revenues
Agriculture (in
Agriculture (in
subject to a fee—
subject to a fee—
at 20% of fee for
at 20% of fee for
This proposal is
content
content
importers, coal
importers, coal
covered fuels; starting
covered fuels; starting
collectedcol ected in the Treasury; in the Treasury;
consultation with
consultation with
determined by the
determined by the
fossil fuel emissions
fossil fuel emissions
identical to H.R. H.R.
Fee on solid
Fee on solid
mines and
mines and
in 2020, target equals
in 2020, target equals
monies in the trust fund (after
monies in the trust fund (after
EPA) to provide
EPA) to provide
Secretary of the
Secretary of the
4051
4051
(Panetta)
biomass based
biomass based
importers, natural
importers, natural
90% of 2017 levels,
90% of 2017 levels,
administrative expenses) are
administrative expenses) are
payments for
payments for
Treasury—that is
Treasury—that is
on GHG content gas wells and
on GHG content gas wells and
reaching 59% of 2017
reaching 59% of 2017
allocated as
allocated as
followsfol ows: :
farmers and
farmers and
equivalent to the
equivalent to the
as determined by importers, solid
as determined by importers, solid
levels in 2025 and 45% 70% to provide monthly
levels in 2025 and 45% 70% to provide monthly
landowners for
landowners for
excess of (1) GHG
excess of (1) GHG
EPA, using a life-
EPA, using a life-
biomass combustion of 2017 levels in 2030;
biomass combustion of 2017 levels in 2030;
payments to eligible individualspayments to eligible individuals
eligible eligible
emissions from
emissions from
cycle analysis
cycle analysis
facilities
facilities
in subsequent years,
in subsequent years,
(i.e., persons with a Social
(i.e., persons with a Social
sequestration
sequestration
production
production
the targets are
the targets are
activities; directs
activities; directs
multiplied by the
multiplied by the
Fee set at
Fee set at
Security number or taxpayer
Security number or taxpayer
reduced by 2.25% of
reduced by 2.25% of
Department of
Department of
relevant U.S.
relevant U.S.
$15/mtCO
$15/mtCO
identification number); adults
identification number); adults
2e
2e
2017 emission levels
2017 emission levels
Energy to provide
Energy to provide
emissions fee over
emissions fee over
emissions in
emissions in
get one share and children
get one share and children
each year
each year
payments for
payments for
(2) the total foreign
(2) the total foreign
2020, increasing
2020, increasing
receive a half-share; payments
receive a half-share; payments
direct air capture
direct air capture
product cost
product cost
by $15 each year
by $15 each year
Fee ceases if emissions are phased-out at certain
Fee ceases if emissions are phased-out at certain
from covered fuels from covered fuels
income levels
income levels
of CO2 emissions; Exporters of
of CO2 emissions; Exporters of
If emission
If emission
equal 10% of 2017
equal 10% of 2017
the funding
the funding
carbon-intensive
carbon-intensive
reduction targets
reduction targets
emission levels
emission levels
source for these
source for these
products (and
products (and
CRS-
CRS-
6162
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
are not met, fee
are not met, fee
20% to support existing and
20% to support existing and
payments is not
payments is not
covered fuels) may
covered fuels) may
increases by $30;
increases by $30;
new infrastructure funding
new infrastructure funding
specified
specified
receive a refund
receive a refund
if annual targets
if annual targets
programs and other objectives
programs and other objectives
under an analogous
under an analogous
met, fee does
met, fee does
5% to the Department of
5% to the Department of
formula
formula
not increase
not increase
Energy to support
Energy to support
Fee
Fee
collectedcol ected
development of GHG
development of GHG
quarterly
quarterly
mitigation technology and
mitigation technology and
related technologies related technologies
5% to support transition 5% to support transition
assistance through new and assistance through new and
existing programs existing programs
H.R. 4051
H.R. 4051
Fee on fossil
Fee on fossil
Covered entities
Covered entities
Emission reduction
Emission reduction
Establishes a trust fund that
Establishes a trust fund that
Directs the
Directs the
Imports of carbon-
Imports of carbon-
Separate fee for
Separate fee for
Panetta
Panetta
fuels based on
fuels based on
include petroleum
include petroleum
targets apply to
targets apply to
receives appropriations equal
receives appropriations equal
Department of
Department of
intensive products
intensive products
fluorinated GHGs set
fluorinated GHGs set
July 25, 2019
July 25, 2019
their GHG
their GHG
refineries and
refineries and
emissions from
emissions from
to emission fee revenues
to emission fee revenues
Agriculture (in
Agriculture (in
subject to a fee—
subject to a fee—
at 20% of fee for
at 20% of fee for
This proposal is
content
content
importers, coal
importers, coal
covered fuels; starting
covered fuels; starting
collectedcol ected in the Treasury; in the Treasury;
consultation with
consultation with
determined by the
determined by the
fossil fuel emissions
fossil fuel emissions
identical to S. S.
Fee on solid
Fee on solid
mines and
mines and
in 2020, target equals
in 2020, target equals
monies in the trust fund (after
monies in the trust fund (after
EPA) to provide
EPA) to provide
Secretary of the
Secretary of the
2284
2284
(Coons)
biomass based
biomass based
importers, natural
importers, natural
90% of 2017 levels,
90% of 2017 levels,
administrative expenses) are
administrative expenses) are
payments for
payments for
Treasury—that is
Treasury—that is
on GHG content gas wells and
on GHG content gas wells and
reaching 59% of 2017
reaching 59% of 2017
allocated as
allocated as
followsfol ows: :
farmers and
farmers and
equivalent to the
equivalent to the
as determined by importers, solid
as determined by importers, solid
levels in 2025 and 45% 70% to provide monthly
levels in 2025 and 45% 70% to provide monthly
landowners for
landowners for
excess of (1) GHG
excess of (1) GHG
EPA using a life-
EPA using a life-
biomass combustion of 2017 levels in 2030;
biomass combustion of 2017 levels in 2030;
payments to eligible individualspayments to eligible individuals
eligible eligible
emissions from
emissions from
cycle analysis
cycle analysis
facilities
facilities
in subsequent years,
in subsequent years,
(i.e., persons with a Social
(i.e., persons with a Social
sequestration
sequestration
production
production
the targets are
the targets are
activities; directs
activities; directs
multiplied by the
multiplied by the
Fee set at
Fee set at
Security number or taxpayer
Security number or taxpayer
reduced by 2.25% of
reduced by 2.25% of
Department of
Department of
relevant U.S.
relevant U.S.
$15/mtCO
$15/mtCO
identification number); adults
identification number); adults
2e
2e
2017 emission levels
2017 emission levels
Energy to provide
Energy to provide
emissions fee over
emissions fee over
emissions in
emissions in
get one share and children
get one share and children
each year
each year
payments for
payments for
(2) the total foreign
(2) the total foreign
2020, increasing
2020, increasing
receive a half-share; payments
receive a half-share; payments
direct air capture
direct air capture
product cost
product cost
by $15 each year
by $15 each year
Fee ceases if emissions are phased-out at certain
Fee ceases if emissions are phased-out at certain
from covered fuels from covered fuels
income levels
income levels
of CO2 emissions; Exporters of
of CO2 emissions; Exporters of
If emission
If emission
equal 10% of 2017
equal 10% of 2017
the funding
the funding
carbon-intensive
carbon-intensive
reduction targets
reduction targets
20% to support existing and
20% to support existing and
emission levels
emission levels
source for these
source for these
products (and
products (and
are not met, fee
are not met, fee
new infrastructure funding
new infrastructure funding
payments is not
payments is not
covered fuels) may
covered fuels) may
increases by $30;
increases by $30;
programs and other objectives
programs and other objectives
specified
specified
receive a refund
receive a refund
if annual targets
if annual targets
5% to the Department of
5% to the Department of
Energy to support Energy to support
CRS-
CRS-
6263
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
met, fee does
met, fee does
development of GHG
development of GHG
under an analogous
under an analogous
not increase
not increase
mitigation technology and
mitigation technology and
formula
formula
Fee
Fee
collectedcol ected
related technologies
related technologies
quarterly
quarterly
5% to support transition
5% to support transition
assistance through new and assistance through new and
existing programs existing programs
H.R. 3966
H.R. 3966
Tax on fossil
Tax on fossil
Tax imposed on
Tax imposed on
GHG emissions target
GHG emissions target
Net revenues from the tax on
Net revenues from the tax on
No specific
No specific
Tax applies to
Tax applies to
Separate tax for
Separate tax for
Lipinski
Lipinski
fuels based on
fuels based on
manufacturers,
manufacturers,
of 80% below 2005
of 80% below 2005
fossil fuels, imported products,
fossil fuels, imported products,
provisions
provisions
specific imported
specific imported
fluorinated GHGs
fluorinated GHGs
July 25, 2019
July 25, 2019
their potential
their potential
producers, and
producers, and
levels
levels
and fluorinated GHGs support
and fluorinated GHGs support
products based on
products based on
(based on metric
(based on metric
CO2 emissions;
CO2 emissions;
importers of fossil
importers of fossil
the
the
followingfol owing objectives: objectives:
the lesser of the
the lesser of the
tons of CO2e) set at
tons of CO2e) set at
tax rate set in
tax rate set in
fuels at first point of
fuels at first point of
10% used to increase monthly
10% used to increase monthly
fossil fuels used
fossil fuels used
10% of the tax rate
10% of the tax rate
2020 at
2020 at
sale
sale
payments to Social Security
payments to Social Security
during production
during production
for fossil fuel
for fossil fuel
$40/short ton of
$40/short ton of
beneficiaries
beneficiaries
or the CO2
or the CO2
emissions
emissions
CO2, increasing
CO2, increasing
emissions
emissions
Suspends
Suspends
annually by 2.5%
annually by 2.5%
5% allocated to the Low-
5% allocated to the Low-
attributable to
attributable to
enforcement of
enforcement of
plus inflation; if
plus inflation; if
Income Home Energy
Income Home Energy
their production;
their production;
certain Clean Air Act
certain Clean Air Act
GHG emissions
GHG emissions
Assistance program
Assistance program
eligible products
eligible products
GHG regulations; if
GHG regulations; if
target is met, the
target is met, the
1% allocated to the
1% allocated to the
based on a list of
based on a list of
EPA determines (in
EPA determines (in
rate increases
rate increases
Department of Energy’s
Department of Energy’s
domestic industries 2030 and every five
domestic industries 2030 and every five
only by inflation
only by inflation
weatherization assistance
weatherization assistance
(prepared by EPA)
(prepared by EPA)
years thereafter) that
years thereafter) that
program
program
that, “in the
that, “in the
emission targets are
emission targets are
After these allocations,
After these allocations,
aggregate, account
aggregate, account
not met, the
not met, the
remaining revenues used to
remaining revenues used to
for 95% of the
for 95% of the
enforcement
enforcement
reduce the
reduce the
payroll payrol tax rates tax rates
taxable carbon
taxable carbon
suspension would
suspension would
that apply to employees and
that apply to employees and
substances used in
substances used in
cease and EPA must
cease and EPA must
the self-employed
the self-employed
the United States”
the United States”
promulgate
promulgate
Exporters may
Exporters may
regulations to reduce
regulations to reduce
receive a refund
receive a refund
emissions from
emissions from
for fossil fuels and
for fossil fuels and
covered fuels
covered fuels
any other product
any other product
with increased with increased
CRS-
CRS-
6364
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
costs attributable
costs attributable
to the new tax to the new tax
H.R. 4058
H.R. 4058
Tax on fossil
Tax on fossil
Tax imposed on
Tax imposed on
Emission reduction
Emission reduction
Tax revenue supports the
Tax revenue supports the
No specific
No specific
Imports of carbon-
Imports of carbon-
Establishes a
Establishes a
Rooney
Rooney
fuels based on
fuels based on
coal at coal mines
coal at coal mines
schedule for covered
schedule for covered
followingfol owing objectives: objectives:
provisions
provisions
intensive goods
intensive goods
conditional
conditional
July 25, 2019
July 25, 2019
their potential
their potential
and importers,
and importers,
emissions starts in
emissions starts in
52.5% to offset a reduction in
52.5% to offset a reduction in
subject to a border
subject to a border
moratorium on moratorium on
GHG emissions,
GHG emissions,
petroleum products
petroleum products
2021 at 5,000
2021 at 5,000
payroll payrol tax rates that apply to tax rates that apply to
tax—determined
tax—determined
Clean Air Act GHG
Clean Air Act GHG
GHG emissions
GHG emissions
at refineries and
at refineries and
mmtCO2e; the annual
mmtCO2e; the annual
employees, employers, and
employees, employers, and
by the Secretary of
by the Secretary of
regulations for
regulations for
from specific
from specific
importers, and
importers, and
emission schedule is
emission schedule is
self-employed persons
self-employed persons
the Treasury—that
the Treasury—that
stationary emissions
stationary emissions
industrial
industrial
natural gas at
natural gas at
cumulative, reaching
cumulative, reaching
is equivalent to the
is equivalent to the
sources (with some
sources (with some
sources, and
sources, and
processors or at
processors or at
49,000 mmtCO
49,000 mmtCO
7.5% to provide a payment to
7.5% to provide a payment to
2e in
2e in
costs in
costs in
exceptions)
exceptions)
GHG emissions
GHG emissions
point of sale for
point of sale for
2031; assuming annual
2031; assuming annual
Social Security beneficiaries
Social Security beneficiaries
comparable
comparable
Creates a credit
Creates a credit
from specific
from specific
combustion
combustion
emission levels
emission levels
7.5% to provide block grants
7.5% to provide block grants
domestic
domestic
system, which phases
system, which phases
products
products
Tax imposed on
Tax imposed on
followedfol owed this this
to states to offset higher
to states to offset higher
manufactured
manufactured
out after five years,
out after five years,
Tax rate set in
Tax rate set in
facilities—in specific
facilities—in specific
decreasing schedule,
decreasing schedule,
energy costs for low-income
energy costs for low-income
goods (associated
goods (associated
for persons making
for persons making
2021 at
2021 at
industrial source
industrial source
covered emissions
covered emissions
households
households
with the carbon
with the carbon
payments under
payments under
$30/mtCO
$30/mtCO
would decrease to
would decrease to
tax)
tax)
2e,
2e,
categories—that
categories—that
7.5% to support climate
7.5% to support climate
existing state GHG
existing state GHG
increasing
increasing
emit more than
emit more than
4,200 mmtCO2e in
4,200 mmtCO2e in
adaptation, carbon
adaptation, carbon
Exporters of
Exporters of
reduction programs
reduction programs
annually by 5%
annually by 5%
25,000 mtCO
25,000 mtCO
2031
2031
2e per
2e per
sequestration, energy
sequestration, energy
energy-intensive
energy-intensive
plus inflation; if
plus inflation; if
year
year
efficiency, and research and
efficiency, and research and
goods may receive
goods may receive
covered
covered
Tax imposed on
Tax imposed on
development programs
development programs
a tax refund
a tax refund
emissions do not
emissions do not
facilities that
facilities that
related to the
related to the
meet emission
meet emission
manufacture or
manufacture or
increased costs of
increased costs of
reduction
reduction
import specified
import specified
inputs (i.e., fossil
inputs (i.e., fossil
schedule, the tax
schedule, the tax
products or
products or
fuels) subject to
fuels) subject to
rate increases by
rate increases by
combust biomass
combust biomass
the tax
the tax
an additional $3
an additional $3
with emissions
with emissions
above 25,000 above 25,000
mtCO2e mtCO2e
H.R. 4142
H.R. 4142
Tax on fossil
Tax on fossil
Tax applies to
Tax applies to
No specific provisions
No specific provisions
Establishes a trust fund that
Establishes a trust fund that
No specific
No specific
The Secretary of
The Secretary of
No specific
No specific
Larson
Larson
fuels based on
fuels based on
manufacturers,
manufacturers,
would receive appropriations
would receive appropriations
provisions
provisions
the Treasury shall
the Treasury shall
provisions
provisions
Aug. 2, 2019
Aug. 2, 2019
their carbon
their carbon
producers, or
producers, or
equal to tax revenue received
equal to tax revenue received
impose a fee on
impose a fee on
content
content
importers of coal,
importers of coal,
in the Treasury; the trust fund
in the Treasury; the trust fund
imports of carbon-
imports of carbon-
CRS-
CRS-
6465
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Tax set at
Tax set at
petroleum, and
petroleum, and
would provide annual funding
would provide annual funding
intensive goods;
intensive goods;
$52/mtCO2 in
$52/mtCO2 in
natural gas
natural gas
for the
for the
followingfol owing infrastructure infrastructure
the fee
the fee
will wil be be
2020, increasing
2020, increasing
programs:
programs:
equivalent to the
equivalent to the
by 6% plus
by 6% plus
$61
$61
billionbil ion (plus the Highway (plus the Highway
cost that domestic
cost that domestic
inflation each
inflation each
Trust Fund shortfall) for
Trust Fund shortfall) for
producers incur
producers incur
year
year
highway (80%) and mass transit
highway (80%) and mass transit
due to the carbon
due to the carbon
(20%);
(20%);
tax; this fee expires
tax; this fee expires
if the exporting if the exporting
$6.4
$6.4
billionbil ion for the for the
nation implements
nation implements
Transportation Investments
Transportation Investments
equivalent
equivalent
Generating Economic
Generating Economic
measures or if an
measures or if an
Recovery program;
Recovery program;
international
international
$4
$4
billionbil ion for aviation; for aviation;
agreement requires
agreement requires
$6.6
$6.6
billionbil ion for passenger rail; for passenger rail;
equivalent
equivalent
$8
$8
billionbil ion for harbors, for harbors,
measures
measures
waterways, flood protection,
waterways, flood protection,
and dams; and dams;
$8.4 $8.4
billionbil ion for wastewater and for wastewater and
drinking water; drinking water;
$4 $4
billionbil ion for broadband; for broadband;
$3 $3
billionbil ion for education for education
infrastructure; infrastructure;
$1.5 $1.5
billionbil ion for health care for health care
research and infrastructure; research and infrastructure;
$2 $2
billionbil ion for the Public for the Public
Housing Capital Fund; Housing Capital Fund;
$4.4 $4.4
billionbil ion for Department of for Department of
Energy research and Energy research and
development programs; and development programs; and
CRS-
CRS-
6566
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
$1.5
$1.5
billionbil ion for Department of for Department of
Agriculture climate-related Agriculture climate-related
research research
In addition, the trust fund In addition, the trust fund
provides: provides:
$7 $7
billionbil ion annually for worker annually for worker
and community transition and community transition
assistance, and assistance, and
12.5% for an energy refund 12.5% for an energy refund
program that would provide program that would provide
monthly payments to monthly payments to
households with incomes up households with incomes up
to 150% of poverty line to 150% of poverty line
Any remaining revenues Any remaining revenues
support a consumer tax rebate support a consumer tax rebate
for households with incomes for households with incomes
up to 350% of the poverty line up to 350% of the poverty line
H.R. 4520
H.R. 4520
Tax on fossil
Tax on fossil
Tax imposed on
Tax imposed on
Emission reduction
Emission reduction
Establishes a trust fund that
Establishes a trust fund that
No specific
No specific
Imports of carbon-
Imports of carbon-
Establishes a
Establishes a
Fitzpatrick
Fitzpatrick
fuels based on
fuels based on
coal at coal mines
coal at coal mines
schedule for covered
schedule for covered
would receive appropriations
would receive appropriations
provisions
provisions
intensive goods
intensive goods
conditional
conditional
Sept. 26, 2019
Sept. 26, 2019
their potential
their potential
and importers,
and importers,
emissions starts in
emissions starts in
equal to 75% of the tax
equal to 75% of the tax
subject to a border
subject to a border
moratorium on moratorium on
GHG emissions,
GHG emissions,
petroleum products
petroleum products
2021 at 4,900
2021 at 4,900
revenue received in the
revenue received in the
tax—determined
tax—determined
Clean Air Act GHG
Clean Air Act GHG
GHG emissions
GHG emissions
at refineries and
at refineries and
mmtCO2e; the annual
mmtCO2e; the annual
Treasury; the trust fund would
Treasury; the trust fund would
by the Secretary of
by the Secretary of
regulations for
regulations for
from specific
from specific
importers, and
importers, and
emission schedule is
emission schedule is
provide annual funding for the
provide annual funding for the
the Treasury—that
the Treasury—that
stationary emissions
stationary emissions
industrial
industrial
natural gas at
natural gas at
cumulative, reaching
cumulative, reaching
followingfol owing infrastructure infrastructure
is equivalent to the
is equivalent to the
sources (with some
sources (with some
sources, and
sources, and
processors or at
processors or at
48,800 mmtCO2e in
48,800 mmtCO2e in
programs (“as provided in
programs (“as provided in
costs in
costs in
exceptions)
exceptions)
GHG emissions
GHG emissions
point of sale for
point of sale for
2031; assuming annual
2031; assuming annual
appropriations acts”) between
appropriations acts”) between
comparable
comparable
Creates a credit
Creates a credit
from specific
from specific
combustion
combustion
emission levels
emission levels
FY2021 and FY2030:
FY2021 and FY2030:
domestic
domestic
system, which phases
system, which phases
products
products
Tax imposed on
Tax imposed on
followedfol owed this this
70% to the Federal Highway
70% to the Federal Highway
manufactured
manufactured
out after five years,
out after five years,
Tax rate set in
Tax rate set in
facilities—in specific
facilities—in specific
decreasing schedule,
decreasing schedule,
Trust Fund;
Trust Fund;
goods (associated
goods (associated
for persons making
for persons making
2021 at
2021 at
industrial source
industrial source
covered emissions
covered emissions
with the carbon
with the carbon
payments under
payments under
$35/mtCO
$35/mtCO
would decrease to
would decrease to
tax)
tax)
2e,
2e,
categories—that
categories—that
increasing
increasing
emit more than
emit more than
CRS-
CRS-
6667
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
annually by 5%
annually by 5%
25,000 mtCO2e per
25,000 mtCO2e per
4,000 mmtCO2e in
4,000 mmtCO2e in
10% to the states as grants to
10% to the states as grants to
Exporters of
Exporters of
existing state GHG
existing state GHG
plus inflation; if
plus inflation; if
year
year
2031
2031
allocate to low-income
allocate to low-income
energy-intensive
energy-intensive
reduction programs
reduction programs
covered
covered
Tax imposed on
Tax imposed on
households;
households;
goods may receive
goods may receive
Creates a National
Creates a National
emissions do not
emissions do not
facilities that
facilities that
4.2% for various energy-
4.2% for various energy-
a tax refund
a tax refund
Climate Commission
Climate Commission
meet emission
meet emission
manufacture or
manufacture or
related research and
related research and
related to the
related to the
to set five-year
to set five-year
reduction
reduction
import specified
import specified
development objectives,
development objectives,
increased costs of
increased costs of
emission reduction
emission reduction
schedule, the tax
schedule, the tax
products or
products or
including carbon capture and
including carbon capture and
inputs (i.e., fossil
inputs (i.e., fossil
goals between 2025
goals between 2025
rate increases by
rate increases by
combust biomass
combust biomass
storage and battery
storage and battery
fuels) subject to
fuels) subject to
and 2050 and assess
and 2050 and assess
an additional $4
an additional $4
with emissions
with emissions
technology;
technology;
the tax
the tax
the effectiveness of
the effectiveness of
above 25,000
above 25,000
4.0% for frequent and chronic
4.0% for frequent and chronic
federal policies in
federal policies in
mtCO2e
mtCO2e
coastal flooding mitigation and
coastal flooding mitigation and
meeting these goals
meeting these goals
adaptation infrastructure
adaptation infrastructure
projects; projects;
3.0% for displaced energy 3.0% for displaced energy
workers; workers;
2.5% for the Airport and 2.5% for the Airport and
Airway Trust Fund; Airway Trust Fund;
1.5% for the Department of 1.5% for the Department of
Energy weatherization Energy weatherization
program; program;
1.5% for the Abandoned Mine 1.5% for the Abandoned Mine
Reclamation Fund; Reclamation Fund;
1.0% for the Reforestation 1.0% for the Reforestation
Trust Fund; Trust Fund;
0.5% to support agricultural 0.5% to support agricultural
GHG sequestration projects; GHG sequestration projects;
0.1% to decrease the 0.1% to decrease the
environmental impact of environmental impact of
renewable energy activities renewable energy activities
pursuant to Section 931 of the pursuant to Section 931 of the
Energy Policy Act of 2005; Energy Policy Act of 2005;
CRS-
CRS-
6768
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
0.1% for the Leaking
0.1% for the Leaking
Underground Storage Tank Underground Storage Tank
trust fund trust fund
H.R. 5457
H.R. 5457
Tax on fossil
Tax on fossil
Tax imposed at coal
Tax imposed at coal
No specific provision
No specific provision
Provides a $1,000 income tax
Provides a $1,000 income tax
No specific
No specific
No specific
No specific
No specific
No specific
Maloney
Maloney
fuels based on
fuels based on
mines and oil and
mines and oil and
credit for individuals and each
credit for individuals and each
provisions
provisions
provisions
provisions
provisions
provisions
Dec. 17, 2019
Dec. 17, 2019
their carbon
their carbon
gas wells and on
gas wells and on
of their dependents; tax credit
of their dependents; tax credit
content
content
fuels “entered into
fuels “entered into
phases out at adjusted gross
phases out at adjusted gross
Tax rate starts in the United States”
Tax rate starts in the United States”
income levels exceeding
income levels exceeding
2020 at $40 per
2020 at $40 per
$314,000; tax credit and
$314,000; tax credit and
ton of carbon,
ton of carbon,
income phase-out level
income phase-out level
which equates to
which equates to
increases each year by a cost
increases each year by a cost
approximately
approximately
of living adjustment
of living adjustment
$11/tCO2
$11/tCO2
emissions; tax emissions; tax
rate increases rate increases
annually by a annually by a
cost of living cost of living
adjustment as adjustment as
defined in the bil defined in the bil
S. 4484
S. 4484
Fee on fossil
Fee on fossil
Fee imposed 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
Durbin
Durbin
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
Aug. 6, 2020
Aug. 6, 2020
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
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
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
2022 at
2022 at
producing
producing
wellswel s and and
from covered fuels
from covered fuels
billionbil ion per year, the remaining per year, the remaining
equivalent to the
equivalent to the
$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,
increasing
increasing
select sources that
select sources that
approximately as
approximately as
followsfol ows
costs domestic
costs domestic
annually by $10
annually by $10
emit 25,000
emit 25,000
2030: 47% below 2018 during the first 10 years:
2030: 47% below 2018 during the first 10 years:
producers of
producers of
plus inflation; if
plus inflation; if
mtCO2e or more 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
emission targets
emission targets
CO2 or methane
CO2 or methane
eligible individuals, phasing out
eligible individuals, phasing out
products incur due
products incur due
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)
CRS-
CRS-
6869
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
2045: 80% below 2018 5% to support agricultural and
2045: 80% below 2018 5% to support agricultural and
the comparable
the comparable
greater
greater
2050: 90% below 2018 forestry sequestration
2050: 90% below 2018 forestry sequestration
costs imposed by
costs imposed by
Fee on other
Fee on other
activities;
activities;
the exporting
the exporting
sources starts in
sources starts in
10% for grants to eligible
10% for grants to eligible
nation
nation
2024
2024
entities to support transition
entities to support transition
Exporters of fossil
Exporters of fossil
Fee is delayed in
Fee is delayed in
assistance to a lower carbon
assistance to a lower carbon
fuels and carbon
fuels and carbon
2022 and 2023 if
2022 and 2023 if
economy;
economy;
intensive products
intensive products
unemployment
unemployment
15% for a newly established
15% for a newly established
may receive a
may receive a
rate is 5% or
rate is 5% or
Climate Change Finance
Climate Change Finance
rebate based on
rebate based on
higher
higher
Corporation to finance “clean
Corporation to finance “clean
the emissions fee
the emissions fee
and manufacturing and manufacturing
A rebate is
A rebate is
energy” and climate change
energy” and climate change
costs attributable
costs attributable
provided for
provided for
resiliency activities, including
resiliency activities, including
to the emissions
to the emissions
carbon capture,
carbon capture,
research and development and
research and development and
fee
fee
sequestration,
sequestration,
commercialization of
commercialization of
and utilization
and utilization
technologies
technologies
activities, if
activities, if
certain certain
conditions are conditions are
met met
H.R. 8175
H.R. 8175
Tax on fossil
Tax on fossil
Tax imposed on
Tax imposed on
Tax ceases if emission
Tax ceases if emission
Establishes a trust fund that
Establishes a trust fund that
No specific
No specific
Imports of goods
Imports of goods
No specific
No specific
McNerney
McNerney
fuels based on
fuels based on
producers, miners,
producers, miners,
targets are met;
targets are met;
receives appropriations equal
receives appropriations equal
provisions
provisions
containing or
containing or
provisions
provisions
Sept. 4, 2020
Sept. 4, 2020
the carbon
the carbon
or importers of
or importers of
targets based on life-
targets based on life-
to carbon tax revenues
to carbon tax revenues
produced using
produced using
content “of the
content “of the
fossil fuels
fossil fuels
cycle emission
cycle emission
received in the Treasury
received in the Treasury
fossil fuels subject
fossil fuels subject
life cycle
life cycle
percentage reductions
percentage reductions
Tax revenue used to offset a
Tax revenue used to offset a
to a carbon
to a carbon
emissions”
emissions”
(as determined by
(as determined by
corresponding reduction in
corresponding reduction in
equivalency fee
equivalency fee
Tax starts in
Tax starts in
EPA) from fossil fuels
EPA) from fossil fuels
individual income tax rates
individual income tax rates
(determined by the
(determined by the
2021 at $25 per
2021 at $25 per
below 2005 levels:
below 2005 levels:
starting in 2021; remaining
starting in 2021; remaining
Secretary of the
Secretary of the
metric ton of
metric ton of
revenues would be allocated as
revenues would be allocated as
Treasury) that is
Treasury) that is
CO
CO
equal to the cost
equal to the cost
2 emissions;
2 emissions;
2025: 30%
2025: 30%
followsfol ows: :
tax rate
tax rate
2030: 40%
2030: 40%
that U.S. producers
that U.S. producers
increases
increases
2035: 50% below
2035: 50% below
of a comparable
of a comparable
annually by
annually by
good incur as a
good incur as a
CRS-
CRS-
6970
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
$10/ton; if
$10/ton; if
2040: 70%
2040: 70%
80% used to provide quarterly
80% used to provide quarterly
result of the U.S.
result of the U.S.
emission targets
emission targets
2050: 80%
2050: 80%
dividends to every person with
dividends to every person with
carbon tax; this fee
carbon tax; this fee
are met, tax
are met, tax
a Social Security number
a Social Security number
expires if the
expires if the
ceases to apply
ceases to apply
20% used to support a range
20% used to support a range
exporting nation
exporting nation
for four years;
for four years;
of objectives, including:
of objectives, including:
implements
implements
tax reapplies if
tax reapplies if
-worker transition assistance
-worker transition assistance
equivalent
equivalent
subsequent
subsequent
-rural energy assistance
-rural energy assistance
measures or if an
measures or if an
targets not met
targets not met
-technology-neutral research
-technology-neutral research
international
international
and development
and development
agreement requires
agreement requires
-electric grid innovation
-electric grid innovation
equivalent
equivalent
-infrastructure resilience
-infrastructure resilience
measures
measures
-energy efficiency and
-energy efficiency and
Exporters of fossil
Exporters of fossil
conservation
conservation
fuels or materials
fuels or materials
that used fossil that used fossil
fuels during fuels during
production or production or
manufacture may manufacture may
receive a tax receive a tax
refund related to refund related to
the increased costs the increased costs
of inputs (i.e., fossil of inputs (i.e., fossil
fuels) subject to fuels) subject to
the carbon tax the carbon tax
Source: Prepared by CRS. Prepared by CRS.
CRS-
CRS-
7071
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
Mechanism to Address Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-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
of
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
provisions
The Climate
The Climate
Pallone
Pallone
of other climate 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
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
to
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 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
plan for achieving
25,000 mtCO2e 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
strategies
specific emission
specific emission
efficiency standards
efficiency standards
strategiesdeveloped and
reduction targets
reduction targets
and incentives,
and incentives,
developed andadministered by
among other
among other
administered byEPA, including
approaches
approaches
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-
CRS-
7172
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Mechanism to Address Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
S. 645
S. 645
Directs
Directs
Secretary
Fee imposed on
Fee imposed on
No specific provisions
No specific provisions
Transfers revenues from the
Transfers revenues from the
No specific
No specific
No specific
No specific
provisions
No specific
No specific
Whitehouse
Whitehouse
Secretary of the of the Treasury to
each company that
each company that
fee on CH4 emissions to the
fee on CH4 emissions to the
provisions
provisions
provisions
provisions
provisions
Mar. 9, 2021
Mar. 9, 2021
Treasury toestimate the
produces, gathers,
produces, gathers,
National Fish and Wildlife
National Fish and Wildlife
estimate themethane (CH4)
processes, or
processes, or
Foundation to provide grants
Foundation to provide grants
methane (CH4)emissions and
transmits oil or
transmits oil or
through the National Coastal
through the National Coastal
emissions andemission rates
natural gas
natural gas
Resilience Fund
Resilience Fund
emission ratesfrom each oil- and
Fee on CH4
Fee on CH4
from each oilnatural-gas- -
emissions based on
emissions based on
and natural-gas-producing basin
(1) proportion of oil
(1) proportion of oil
producing basinFee starts in 2023
or natural gas
or natural gas
Fee starts inat $1,800/ton,
produced in a
produced in a
2023 atincreasing annually
particular location,
particular location,
$1,800/ton,by 2% plus
or (2) another
or (2) another
increasinginflation
method of measure
method of measure
annually by 2%
proposed by a
plus inflation
proposed by a company and company and
approved by the approved by the
Secretary Secretary
S. 685
S. 685
Fee on fossil
Fee on fossil
fuels
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
Durbin
Durbin
fuels and other and other
selected 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
intensive goods are
subject agreement with the agreement with the
Mar. 10, 2021
Mar. 10, 2021
selected GHGGHG emission
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 to a fee (determined by
National Academy of
National Academy of
emission sources sources
at refineries and at refineries and
on percentage
on percentage
the Treasury; after subtracting
the Treasury; after subtracting
(determined bythe Secretary of the the
Sciences to study
Sciences to study
Fee on fossil
Fee on fossil
fuels
importers, and
importers, and
reductions compared
reductions compared
fee rebates and, in the first 18
fee rebates and, in the first 18
Secretary of theTreasury) that is
effects of fee
effects of fee
fuels starts in starts in
2023 at
natural gas at
natural gas at
to emission levels
to emission levels
years, approximately $5.5
years, approximately $5.5
Treasury) that isequivalent to the
program
program
2023 at $25/mtCO
producing
producing
wellswel s and and
from covered fuels
from covered fuels
billionbil ion per year, the remaining per year, the remaining
equivalent to thedifference in (1) costs
2e,
Directs the Council
Directs the Council
$25/mtCOincreasing annually
importers; and
importers; and
and sources in 2018:
and sources in 2018:
funds are allocated
funds are allocated
difference in (1)
2e,domestic producers of
on Environmental
on Environmental
increasingby $10 plus
select sources that
select sources that
approximately as
approximately as
follows
costs domestic
fol ows
comparable products incur Quality to develop Quality to develop
annually by $10inflation; if
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 ofdue to the fee and (2) the
carbon sequestration
carbon sequestration
plus inflation; ifemission targets
mtCO2e or more of
mtCO2e or more of
comparable
comparable
costs imposed
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 targetsare not met, the
CO2 or methane
CO2 or methane
eligible individuals, phasing out
eligible individuals, phasing out
products incur dueby the exporting nation
for public and private
for public and private
are not met, thefee increases are
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)Exporters of fossil fuels
land and water
land and water
greater
2045: 80% below 2018
2045: 80% below 2018
the comparableand carbon-intensive
resources
CRS-73
resources
costs imposed by
CRS-72
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Mechanism to Address Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
fee increases areFee on other
2050: 90% below 2018 5% to support agricultural and
2050: 90% below 2018 5% to support agricultural and
the exporting
greater
forestry sequestration
nation
Fee on other
activities;
Exporters of fossil
sources starts inproducts may receive a
sources starts in
forestry sequestration
rebate based on the
2025
activities;
emissions fee and
A rebate is
10% for grants to eligible
manufacturing costs
provided for
10% for grants to eligible
fuels and carbon-
2025
entities to support transition
entities to support transition
intensive products
A rebate isattributable to the
carbon capture,
assistance to a lower carbon
assistance to a lower carbon
may receive a
provided for
economy;
rebate based on
carbon capture,emissions fee
sequestration, and
economy;
utilization
15% for a newly established
15% for a newly established
the emissions fee
sequestration,activities, if certain
Climate Change Finance
Climate Change Finance
and manufacturing
and utilizationconditions are met
Corporation to finance “clean
Corporation to finance “clean
costs attributable
activities, if
energy” and climate change
to the emissions
certain
resiliency activities, including
fee
conditions are
energy” and climate change resiliency activities, including research and development and research and development and
met
commercialization of commercialization of
technologies technologies
H.R. 2307
H.R. 2307
Fee on fossil
Fee on fossil
fuels
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 based on
their
include petroleum
include petroleum
targets apply to fossil
targets apply to fossil
receives appropriations equal
receives appropriations equal
provisions
provisions
intensive products
intensive products
subject
of Energy to enter
of Energy to enter
Apr. 1, 2021
Apr. 1, 2021
their GHGGHG content
refineries and
refineries and
fuel combustion
fuel combustion
to emission fee revenues
to emission fee revenues
subject to a fee—to a fee—
determined by
agreement with the
agreement with the
contentFee set at
importers, coal
importers, coal
emissions; starting in
emissions; starting in
received in the Treasury;
received in the Treasury;
determined bythe Secretary of the the
National Academy of
National Academy of
Fee set at $15/mtCO
mines and
mines and
2023, annual
2023, annual
monies in the trust fund are
monies in the trust fund are
Secretary ofTreasury—equal to the the
Sciences to study
Sciences to study
$15/mtCO2e
emissions in 2021,
importers, natural
importers, natural
reductions of 5% of
reductions of 5% of
available (after administrative
available (after administrative
Treasury—equal to total carbon fee that
effects of the fee on effects of the fee on
2e
emissions inincreasing by $10
gas deliverers and
gas deliverers and
2010 net GHG levels
2010 net GHG levels
expenses) to provide monthly
expenses) to provide monthly
the total carbonwould have accumulated
emissions from
emissions from
2021, increasingeach year plus
importers
importers
(287
(287
millionmil ion mtCO2e) mtCO2e)
payments to eligible individuals
payments to eligible individuals
fee that wouldupon the GHG content of
biomass and resulting
biomass and resulting
by $10 each yearinflation
between 2023 and
between 2023 and
(i.e., persons with a Social
(i.e., persons with a Social
have accumulatedthe product if the product
impacts on carbon
impacts on carbon
plus inflation
2030; annual 2030; annual
Security number or taxpayer
Security number or taxpayer
upon the GHG
sinkswere produced in the
sinks
If emission
reductions of 3% of
reductions of 3% of
identification number); adults
identification number); adults
content of the
If emissionUnited States; the
reduction targets
2010 net GHG levels
2010 net GHG levels
get one share and children
get one share and children
product if the
reduction targets
(172 millionSecretary may modify this
are not met, fee
(172 mil ion mtCO mtCO
receive a half-share
receive a half-share
product were
are not met, feefee based on mitigation
increases by $15
2e)
2e)
between 2031 and
between 2031 and
produced in the
increases by $15
2050
United States; the
plus inflation; if
Secretary may
targets met, fee
Fee ceases if emissions from covered fuels
modify this fee based on mitigation
CRS-73efforts/costs in the
plus inflation; if
2050
country of export
targets met, fee does not increase
Fee ceases if emissions
Exporters of carbon-
from covered fuels
intensive products (and
CRS-74
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Mechanism to Address Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
does notProvides a rebate
decrease to 10% of
covered fuels) may receive
for fuels used on a
2010 emissions from
a refund based on fee
farm and for fuels
covered fuels (544
levied before exportation
or their
mil ion mtCO2e) and
derivatives used by
monthly dividend
U.S. Armed Forces
check reach certain levels
H.R. 2451
Fee on fossil fuels
decrease to 10% of
efforts/costs in the
increase
2010 emissions from
country of export
Provides a
covered fuels (544
Exporters of
rebate for fuels
million mtCO2e) and
carbon-intensive
used on a farm
monthly dividend
products (and
and for fuels or
check reach certain
covered fuels) may
their derivatives
levels
receive a refund
used by U.S.
based on fee levied
Armed Forces
before exportation
H.R. 2451
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 and other
selected 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
intensive goods are
subject agreement with the agreement with the
Apr. 12, 2021
Apr. 12, 2021
selected GHGGHG emission
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 to a fee (determined by
National Academy of
National Academy of
emission sources sources
at refineries and at refineries and
on percentage
on percentage
the Treasury; after subtracting
the Treasury; after subtracting
(determined bythe Secretary of the the
Sciences to study
Sciences to study
This proposal is
Fee on fossil
Fee on fossil
fuels
importers, and
importers, and
reductions compared
reductions compared
fee rebates and, in the first 18
fee rebates and, in the first 18
Secretary of theTreasury) that is
effects of fee
effects of fee
identical to S. 685
fuels starts in starts in
2023 at
natural gas at
natural gas at
to emission levels
to emission levels
years, approximately $5.5
years, approximately $5.5
Treasury) that isequivalent to the
program
program
(Durbin)
2023 at $25/mtCO
producing
producing
wellswel s and and
from covered fuels
from covered fuels
billionbil ion per year, the remaining per year, the remaining
equivalent to thedifference in (1) costs
2e,
Directs the Council
Directs the Council
$25/mtCOincreasing annually
importers; and
importers; and
and sources in 2018:
and sources in 2018:
funds are allocated
funds are allocated
difference in (1)
2e,domestic producers of
on Environmental
on Environmental
increasingby $10 plus
select sources that
select sources that
approximately as
approximately as
follows
costs domestic
fol ows
comparable products incur Quality to develop Quality to develop
annually by $10inflation; if
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 ofdue to the fee and (2) the
carbon sequestration
carbon sequestration
plus inflation; ifemission targets
mtCO2e or more of
mtCO2e or more of
comparable
comparable
costs imposed
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 targetsare not met, the
CO2 or methane
CO2 or methane
eligible individuals, phasing out
eligible individuals, phasing out
products incur dueby the exporting nation
for public and private
for public and private
are not met, thefee increases are
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)Exporters of fossil fuels
land and water
land and water
fee increases aregreater
2045: 80% below 2018
2045: 80% below 2018
the comparable
5% to support agricultural and 5% to support agricultural and
resources
greater
2050: 90% below 2018
costs imposed by
forestry sequestration
the exporting
Fee on other
activities;
nation
sources starts in
10% for grants to eligible
2025
Exporters of fossil
entities to support transition
fuels and carbon
A rebate is
assistance to a lower carbon
intensive products
provided for
economy;
may receive a
carbon capture,
15% for a newly established
rebate based on
sequestration,
Climate Change Finance
the emissions fee
and utilization
Corporation to finance “clean
and manufacturing
CRS-74
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-and carbon intensive
resources
Fee on other
2050: 90% below 2018 forestry sequestration
products may receive a
sources starts in
activities;
rebate based on the
2025
emissions fee and
10% for grants to eligible
manufacturing costs
A rebate is
entities to support transition
attributable to the
provided for
assistance to a lower carbon
emissions fee
carbon capture,
economy;
sequestration, and
15% for a newly established
utilization
Climate Change Finance
activities, if certain
Corporation to finance “clean
conditions are met
energy” and climate change resiliency activities, including
CRS-75
Bill Number,
Sponsor,
Introduced
Offset and
Date, and
International
Mechanism to Address
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
activities, if
energy” and climate change
costs attributable
certain
resiliency activities, including
to the emissions
conditions are
research and development and
fee
met
research and development and commercialization of commercialization of
technologies technologies
H.R. 3039
H.R. 3039
Tax on fossil
Tax on fossil
fuels
Tax imposed on
Tax imposed on
Emission reduction
Emission reduction
Establishes a trust fund that
Establishes a trust fund that
No specific
No specific
Imports of carbon-
Imports of carbon-
Establishes a
Establishes a
Fitzpatrick
Fitzpatrick
fuels based on based on
their
coal at coal mines
coal at coal mines
schedule for covered
schedule for covered
would receive appropriations
would receive appropriations
provisions
provisions
intensive goods
intensive goods
subject to
conditional
conditional
May 7, 2021
May 7, 2021
their potentialpotential GHG
and importers,
and importers,
emissions starts in
emissions starts in
equal to 75% of the tax
equal to 75% of the tax
subject to a bordera border tax—determined
moratorium on
moratorium on
GHG emissions,emissions,
GHG
petroleum products
petroleum products
2023 at 4,900
2023 at 4,900
revenue received in the
revenue received in the
tax—determinedby the Secretary of the
Clean Air Act GHG
Clean Air Act GHG
GHG emissionsemissions from
at refineries and
at refineries and
mmtCO2e; the annual
mmtCO2e; the annual
Treasury; the trust fund would
Treasury; the trust fund would
by the Secretary ofTreasury—that is
regulations for
regulations for
from specificspecific industrial
importers, and
importers, and
emission schedule is
emission schedule is
provide annual funding for the
provide annual funding for the
the Treasury—thatequivalent to the costs in
stationary emissions
stationary emissions
industrial
sources, and GHG natural gas at natural gas at
cumulative, reaching
cumulative, reaching
followingfol owing infrastructure infrastructure
is equivalent to thecomparable domestic
sources (with some
sources (with some
sources, andemissions from
processors or at
processors or at
47,100 mmtCO2e in
47,100 mmtCO2e in
programs (“as provided in
programs (“as provided in
costs inmanufactured goods
exceptions)
exceptions)
GHG emissionsspecific products
point of sale for
point of sale for
2033; assuming annual
2033; assuming annual
appropriations acts”) between
appropriations acts”) between
comparable(associated with the
Creates a credit
Creates a credit
from specificTax rate set in
combustion
combustion
emission levels
emission levels
FY2023 and FY2032:
FY2023 and FY2032:
domesticcarbon tax)
system, which phases
system, which phases
products2023 at
Tax imposed on
Tax imposed on
followedfol owed this this
70% to the Federal Highway
70% to the Federal Highway
manufacturedExporters of goods that
out after five years,
out after five years,
Tax rate set in
facilities—in specific
decreasing schedule,
Trust Fund;
goods (associated$35/mtCO
decreasing schedule,
2e,
facilities—in specific
Trust Fund;
are both energy-intensive
for persons making
for persons making
2023 atincreasing annually
industrial source
industrial source
covered emissions
covered emissions
with the carbon
10% to the states as grants to 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
increasingand trade-intensive may
payments under
by 5% plus
categories—that
would decrease to
allocate to low-income
receive a tax refund
existing state GHG
inflation; if
emit more than
emit more than
4,000 mmtCO2e in
4,000 mmtCO2e in
households;
households;
Exporters of goodsrelated to the increased
reduction programs
reduction programs
annually by 5%covered emissions
25,000 mtCO
25,000 mtCO
2033
2033
2e per
2e per
that are bothcosts of inputs (i.e., fossil
Creates a National
Creates a National
plus inflation; ifdo not meet
year
year
4.2% for various energy-
4.2% for various energy-
energy-intensivefuels) subject to the tax
Climate Commission
Climate Commission
coveredemission
related research and
related research and
Tax imposed on
Tax imposed on
and trade-intensive
to set five-year to set five-year
emissions do notreduction
development objectives,
development objectives,
facilities that
facilities that
may receive a tax
emission reduction
meet emissionemission reduction
schedule, the tax
including carbon capture and
including carbon capture and
manufacture or
manufacture or
refund related to
goals between 2027 goals between 2027
reductionrate increases by
storage and battery
storage and battery
import specified
import specified
the increased costs
and 2052 and assess and 2052 and assess
schedule, the taxan additional $4
technology;
products or
the effectiveness of
combust biomass
4.0% for frequent and chronic
federal policies in
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
with emissions
coastal flooding mitigation and
coastal flooding mitigation and
the tax
meeting these goals meeting these goals
above 25,000
above 25,000
adaptation infrastructure
adaptation infrastructure
mtCO
mtCO
projects;
projects;
2e
2e
3.0% for displaced energy workers;
CRS-76
CRS-75
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Mechanism to Address Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-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 2.5% for the Airport and
Airway Trust Fund; Airway Trust Fund;
1.5% for the Department of 1.5% for the Department of
Energy weatherization Energy weatherization
program; program;
1.5% for the Abandoned Mine 1.5% for the Abandoned Mine
Reclamation Fund; Reclamation Fund;
1.0% for the Reforestation 1.0% for the Reforestation
Trust Fund; Trust Fund;
0.5% to support agricultural 0.5% to support agricultural
GHG sequestration projects; GHG sequestration projects;
0.1% to decrease the 0.1% to decrease the
environmental impact of environmental impact of
renewable energy activities renewable energy activities
pursuant to Section 931 of the pursuant to Section 931 of the
Energy Policy Act of 2005; Energy Policy Act of 2005;
0.1% for the Leaking 0.1% for the Leaking
Underground Storage Tank Underground Storage Tank
trust fund trust fund
S. 2085
S. 2085
Fee on fossil
Fee on fossil
fuels
Fee applies to coal
Fee applies to coal
Fee continues until
Fee continues until
The
The
bill bil provides an annual tax provides an annual tax
No specific
No specific
Imports of carbon-
Imports of carbon-
Separate fee for
Separate fee for
Whitehouse
Whitehouse
fuels based on based on
their
at mines and
at mines and
national GHG
national GHG
credit for each individual;
credit for each individual;
provisions
provisions
intensive goods
intensive goods
subject to
fluorinated GHGs
fluorinated GHGs
June 16, 2021
June 16, 2021
their carboncarbon content
importers,
importers,
emissions are 80%
emissions are 80%
provides an equivalent benefit
provides an equivalent benefit
subject to a fee—a fee—determined by the
Separate fee for
Separate fee for
content andand certain
petroleum at
petroleum at
below 2005 levels
below 2005 levels
to individuals not eligible for
to individuals not eligible for
determined bySecretary of the the
GHGs (other than
GHGs (other than
certain facilitiesfacilities for GHG
refineries and
refineries and
the tax credit
the tax credit
Secretary of theTreasury—that is
CO2 and fluorinated
CO2 and fluorinated
for GHGemissions
importers, natural
importers, natural
Provides up to $10
Provides up to $10
billion in
Treasury—that isbil ion in
equivalent to the
gas emissions) at
gas emissions) at
emissionsFee set at $54/ton
gas deliverers (as
gas deliverers (as
annual grants to states to be
annual grants to states to be
equivalent to thedifference in (1) costs
facilities that (1) are
facilities that (1) are
Fee set at CO
reported on Energy
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-76domestic producers of
2 emissions in
used to
subject to GHG
2023, increasing by Information
comparable products incur
(1) assist low-income and rural
reporting
6% plus inflation
Administration
due to the carbon price
households with energy costs,
requirements in 40
each year
Form 176) and
and (2) the comparable
C.F.R. Part 98 and (2)
some natural gas
costs (e.g., GHG fees)
emit more than
CRS-77
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Mechanism to Address Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-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 processors; and
(2) support job training and
(2) support job training and
to the carbon price imposed by the nation
25,000 mtCO2e 25,000 mtCO2e
year
facilities that (1) are facilities that (1) are
worker assistance programs,
worker assistance programs,
and (2) theexporting the material
emissions
emissions
subject to GHG
subject to GHG
and
and
comparable costs Exporters of energy-
Additional fee for
reporting
(3) assist the state in climate
intensive goods may
GHG emissions
requirements in 40
change adaptation or transition
receive a refund related to
(described as
C.F.R. Part 98 and
to a low-carbon economy; this
the increased costs of
“associated
(2) emit more than
amount increases annually
inputs (i.e., fossil fuels)
emissions”) resulting
25,000 tons of
subject to the fee
from venting, flaring,
GHGs annually
and leaking across
Fee also applies to
the coal, natural gas,
certain industrial
and petroleum supply
sources, regardless
chains (as determined
of their emissions
by Secretary of the
output, including
Treasury)
aluminum
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-production, HCFC-
22 production and 22 production and
HFC-23 destruction, HFC-23 destruction,
and fluorinated gas and fluorinated gas
production; this fee production; this fee
starts as a starts as a
percentage of the percentage of the
fossil fuel fee and fossil fuel fee and
increases annually increases annually
H.R. 4084
H.R. 4084
Directs
Directs
Secretary
Fee imposed on
Fee imposed on
No specific provisions
No specific provisions
Transfers revenues from the
Transfers revenues from the
No specific
No specific
No specific
No specific
provisions
No specific
No specific
Deutch
Deutch
Secretary of the of the Treasury to
each company that
each company that
fee on CH4 emissions to the
fee on CH4 emissions to the
provisions
provisions
provisions
provisions
provisions
June 23, 2021 June 23, 2021
Treasury toestimate the
produces, gathers,
produces, gathers,
National Fish and Wildlife
National Fish and Wildlife
This proposal is
estimate themethane (CH4)
processes, or
processes, or
Foundation to provide grants
Foundation to provide grants
identical to S. 645
methane (CH4)emissions and
transmits oil or
transmits oil or
through the National Coastal
through the National Coastal
(Whitehouse)
emissions andemission rates
natural gas
natural gas
Resilience Fund
Resilience Fund
emission rates
CRS-77from each oil- and
Fee on CH4
natural-gas-
emissions based on
producing basin
(1) proportion of oil
CRS-78
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Mechanism to Address Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-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-78Fee starts in 2023
or natural gas
at $1,800/ton,
produced in a
increasing annually
particular location,
by 2% plus
or (2) another
inflation
method of measure proposed by a company and approved by the Secretary
S. 4355
Imposes an
Domestic charge
No specific provisions
Allocates 75% of the emissions
No specific
Imports of carbon-
No specific
Whitehouse
emissions charge
applies to facilities
charge revenues to the
provisions
intensive goods (“primary
provisions
June 7, 2022
at certain facilities;
that are required to
Department of the Treasury
goods”) are subject to a
charge based on a
report GHG
to establish and implement a
charge based on the
carbon price and
emissions to the
competitive grant program to
domestic carbon price and
the degree to
EPA’s GHG
eligible entities for investments
the difference in carbon
which a facility’s
Reporting Program
in technology that reduce their
intensities between the
carbon intensity
(40 CFR Part 98)
carbon intensity; authorizes
imported good and the
exceeds the
and produce
Treasury to “recapture” grant
carbon intensity of the
intensity of the
primary goods in
funds under certain conditions
relevant U.S. industrial
relevant industrial
specific industries,
Allocates 25% of the revenues
sector; the default
sector
including
to the Department of State for
measure of carbon
Carbon intensity is petroleum and
multilateral assistance to
intensity for imported
a measure of
natural gas
support climate and clean
goods is the exporting
“covered
extraction;
energy programs
country’s gross domestic
emissions” divided
product divided by total
underground coal
by total weight of
production-based
mining;
primary goods
emissions; under certain
produced
iron and steel;
conditions, the Department of the
Carbon price
chemical
Treasury determines the
starts in 2024 at
manufacturing;
intensity measure for the
$55, increasing
among other industrial sectors
relevant industrial sector in the exporting country
CRS-79
Bill Number,
Sponsor,
Introduced
Offset and
Date, and
International
Mechanism to Address
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
annually by 5%
(emissions divided by total
plus inflation
weight of product in that
Directs the
sector); alternatively, an
Department of the
importer may submit a
Treasury to
petition supporting a
establish a
carbon intensity specific to
reporting program
a particular manufacturer
for facilities to
in the exporting country
provide data for
Charge on imported
calculating their
goods paid by entity that
carbon intensity
imports the goods
(e.g., process
Primary goods produced
emissions,
in a “relatively least
electricity use,
developed country” are
weight of primary
excluded from the import
goods produced);
fee
data to be reported by June
U.S. facilities that export
30, 2025
covered materials can seek refund based on payment of the domestic charge
Source: Prepared by CRS. Notes: This table does not include two proposals in the 117th Congress (S. 2378 and H.R. 4534) that would establish a border carbon adjustment framework for imported carbon-intensive materials. These proposals are not included in the above table because the bil s would not establish a direct carbon price on domestic emissions or their inputs. The proposed border carbon adjustment mechanisms but would be based on “domestic environmental costs,” which would include existing Clean Air Act regulations, among other costs.
CRS-80
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
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
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connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
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R45472
R45472
· VERSION 2123 · UPDATED
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