Market-Based Greenhouse Gas Emission Reduction Legislation: 108th through 116th Congresses

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

fluctuated over the past 15 years. During that time, legislation has often involved market-based
approaches, such as a cap-and-trade system or a carbon tax or emissions fee program. Both

approaches would place a price—directly or indirectly—on GHG emissions or their inputs,
namely fossil fuels. Both would increase the price of fossil fuels , and both would reduce GHG emissions to some degree.
Both would allow emission sources to choose the best way to meet their emission requirements or reduce costs, potentialy by
using market forces to minimize national costs of emission reductions. Preference between the two approaches ultimately
depends on which variable policymakers prefer to precisely control—emission levels or emission prices.
A primary policy concern with either approach is the economic impacts that may result. Expected energy price increases
could have both economy-wide impacts (e.g., on the U.S. gross domestic product) and disproportionate effects on specific
industries and particular demographic groups. The degree of these potential effects would depend on a number of factors,
including the magnitude, design, and scope of the program and the use of tax or fee revenues or emission allowance values.
As the 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 115th Congresses, most of the introduced bills would have established carbon
tax or emissions fee programs. Most of the proposals from the 116th Congress would establish a carbon tax or emissions fee
program. The proposals range 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 differ by how, to whom, and for what purpose the
fee revenues or allowance value would be applied. Some economic analyses indicate that policy choices to distribute the tax,
fee, or emission allowance revenue would yield greater economic impacts than the direct impacts of the carbon price.
Figure 1.Number and Type of Introduced GHG Emission Reduction Bills
108th Congress through 116th Congress

Source: Prepared by CRS.
Notes: “Other Approaches” include (1) proposals that did not specify the overal 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
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
characteristics:
General framework: the proposed program structure and scope in terms of emissions covered, multiple
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
program.
Emissions limit or target: 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
revenue would be distributed.
Offset and international allowance treatment: the degree to which offsets and international allowances
could be used for compliance purposes and the types of offset activities that would qualify.
Mechanism to address carbon-intensive imports: a U.S. GHG reduction program may create a
competitive disadvantage for some domestic businesses, particularly carbon-intensive, trade-exposed
industries.
Additional GHG reduction measures: other mechanisms designed to further reduce GHG emissions that
are not covered in the central program.

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

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

Tables
Table 1. GHG Emission Reduction Proposals: 108th Congress ................................................ 7
Table 2. GHG Emission Reduction Proposals: 109th Congress .............................................. 10
Table 3. GHG Emission Reduction Proposals: 110th Congress .............................................. 17
Table 4. GHG Emission Reduction Proposals: 111th Congress .............................................. 27
Table 5. GHG Emission Reduction Proposals: 112th Congress .............................................. 35
Table 6. GHG Emission Reduction Proposals: 113th Congress .............................................. 37
Table 7. GHG Emission Reduction Proposals: 114th Congress .............................................. 40
Table 8. GHG Emission Reduction Proposals: 115th Congress .............................................. 46
Table 9. GHG Emission Reduction Proposals: 116th Congress .............................................. 58

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

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Market-Based Greenhouse Gas Emission Reduction Legislation

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

1 GHGs in the atmosphere trap radiation as heat, warming the Earth’s surface and oceans. T he primary GHGs emitted
by human activities (and estimated by EPA in its annual inventories) include CO2, methane, nitrous oxide (N2O), sulfur
hexafluoride (SF6), chlorofluorocarbons, hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs). Other GHGs
include carbonaceous and sulfuric aerosols, hydrochlorofluorocarbons, and elevated tropospheric ozone pollution
generated by emissions of nitrogen oxides and volatile organic compounds, such as solvents.
2 For the latest U.S. assessment of the human contribution to climate change, see Intergovernmental Panel on Climate
Change, Global Warm ing of 1.5°C, Special Report, 2018; and U.S. Global Change Research Program, Fourth National
Clim ate Assessm ent, vol. II: Im pacts, Risks, and Adaptation in the United States
, 2018. See also CRS Report R45086,
Evolving Assessm ents of Hum an and Natural Contributions to Clim ate Change , by Jane A. Leggett .
3 Some countries have levied carbon taxes (or something similar) for over 20 years. For a review of carbon prices in
other countries, see OECD, Effective Carbon Rates: Pricing CO2 through Taxes and Em issions Trading System s, 2016,
http://www.oecd-ilibrary.org/taxation/effective-carbon-rates_9789264260115-en; and the Carbon T ax Center website
at http://www.carbontax.org/where-carbon-is-taxed.
4 A number of U.S. states have taken action requiring GHG emission reductions. T he most aggressive actions have
come from California and from the Regional Greenhouse Gas Initiative (RGGI)—a coalition of nine states from the
Northeast and Mid-Atlantic regions. T he RGGI is a cap-and-trade system that t ook effect in 2009 that applies to CO2
emissions from electric power plants. (See CRS Report R41836, The Regional Greenhouse Gas Initiative: Background,
Im pacts, and Selected Issues
, by Jonathan L. Ramseur.) California established a cap-and-trade program that took effect
in 2013. California’s cap covers multiple GHGs, which account for approximately 85% of California’s GHG emissions.
For more details, see the California Air Resources Board website, https://www.arb.ca.gov/cc/capandtrade/
capandtrade.htm. In addition to its emissions cap, California has adopted a range of other climate change mitigation
policies (e.g., renewable energy portfolio stan dards).
5 Other approaches may include performance-based or technology-based standards (e.g., best available control
technology). See CRS Report R41973, Clim ate Change: Conceptual Approaches and Policy Tools, by Jane A. Leggett .
6 T he 1990 Clean Air Act Amendments established a market -based cap-and-trade program to control the air emissions
(sulfur dioxide and nitrogen oxides) that lead to acid rain. Although controversial at its inception, the progra m is widely
considered a success. See, for example, Gabriel Chan et al., The SO2 Allowance Trading System and the Clean Air Act
Am endm ents of 1990: Reflections on Twenty Years of Policy Innovation
, Harvard Environmental Economics Program,
2012, https://www.belfercenter.org/sites/default/files/legacy/files/so2-brief_digital4_final.pdf.
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GHG emissions—legislation that promotes renewable energy7 or encourages carbon capture and
sequestration8—but these bil s are not discussed in this report.
In addition, starting in the 112th Congress, some Members have introduced resolutions in the
House and Senate expressing the view that a carbon tax is not in the economic interests of the
United States. In September 2018, the House passed a resolution “expressing the sense of
Congress that a carbon tax would be detrimental to the United States economy” (H.Con.Res.
119).9 An analogous resolution was not introduced in the Senate in the 115th Congress.
As Figure 2 il ustrates, between the 108th and 111th Congresses, most of the introduced bil s
would have established cap-and-trade systems. Between the 112th and 115th Congresses, most of
the introduced bil s would have established carbon tax or emissions fee programs.
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 bil .11 A companion bil in the
Senate (S. 1733) was ordered reported from the Committee on Environment and Public Works,
but the bil was never brought to the Senate floor for consideration.
In subsequent Congresses, some Members continued to offer GHG emission control legislation,
but these proposals saw minimal legislative activity. During that time frame, the U.S.
Environmental Protection Agency (EPA) used existing Clean Air Act authorities to promulgate
GHG emission standards for key sectors, including the electric power and transportation sectors.12
EPA rulemakings in this area—particularly the 2015 Clean Power Plan final rule13 and the 2019
Affordable Clean Energy final rule14—continue to generate interest and debate in Congress.
The proposals from the 116th Congress range in their 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 differ by how, to whom, and for what purpose the fee revenues
or al owance value would be applied. Some economic analyses indicate that policy choices to
distribute the tax, fee, or emission al owance revenue would yield greater economic impacts than
the direct impacts of the carbon price.15
The first section of this report provides background information on cap-and-trade and carbon tax
or emission fee programs. The second section compares the GHG emission reduction legislation
in each Congress (108th-116th).

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

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

16 In some instances, legislation would have directed EPA to establish a GHG emissions reduction program with a
market -based approach as one option. An alternative approach to a market -based system might involve regulatory
directives that require emission performance standards for specific sources or the application of best available control
technology.
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emitting sectors (e.g., power plants and carbon-intensive industries), fuel producers and/or
processors (e.g., coal mines or petroleum refineries), or some combination of both.
The emissions cap is partitioned into emission allowances. Typical y, in a GHG cap-and-trade
system, one emission al owance represents the authority to emit one metric ton17 of carbon
dioxide-equivalent (mtCO2e).18 The emissions cap creates a new commodity—the emission
al owance. Policymakers may decide to distribute the emission al owances to covered entities at
no cost (based on, for example, previous years’ emissions), sel the al owances (e.g., through an
auction), or use some combination of these strategies. The distribution of emission al owances is
typical y a source of significant debate during a cap-and-trade program’s development, because
the al owances have monetary value.
At the end of each established compliance period (e.g., a calendar year or multiple years),
covered sources submit emission al owances to an implementing agency to cover the number of
tons emitted. If a source did not provide enough al owances to cover its emissions, the source
would be subject to penalties. Covered sources would have a financial incentive to make
reductions beyond what is required, because they could (1) sel or trade unused emission
al owances to entities that face higher costs to reduce their facility emissions, (2) reduce the
number of emission al owance they need to purchase, or (3) bank them, if al owed, to use in a
future year.
The use of emission offsets as a compliance option received attention during debate over cap-and-
trade programs. An offset is a measurable reduction, avoidance, or sequestration of GHG
emissions from a source not covered by an emission reduction program. Economic analyses of
cap-and-trade proposals concluded that offset treatment (i.e., whether or not to al ow their use
and, if so, to what degree) would have a substantial impact on overal program cost. This is
because some emissions and sources often not covered in cap-and-trade programs can reduce
emissions at a lower cost per ton than many typical y covered sources. However, the use of
offsets generates considerable controversy, primarily over the concern that difficult-to-assess or
fraudulent offsets could create uncertainty about the quantity of emission reductions.19
In addition, other mechanisms—such as al owance banking or borrowing—may be included to
increase the flexibility of the program and, general y, reduce the costs.
What Is a Carbon Tax or Emissions Fee?
In a carbon tax or emissions fee program, policymakers attach a price to GHG emissions or the
inputs that create them. A carbon tax/fee on emissions or emissions inputs—namely fossil fuels—
would increase the relative price of the more carbon-intensive energy sources. This result is

17 A metric ton is approximately 2,205 pounds. A short ton equals 2,000 pounds.
18 T his term of measure (CO2e) is used because GHGs vary by global warming potential (GWP). GWP is an index
developed by the Intergovernmental Panel on Climate Change (IPCC) that allows comparisons of the heat -trapping
ability of different gases over a period of time, typically 100 years. Consistent with international GHG reporting
requirements, EPA’s most recent GHG inventory (2018) uses the GWP values presented in the IPCC’s 2007 Fourth
Assessment Report. For example, based on these GWP values, a ton of methane is 25 times more potent than a ton of
CO2 when averaged over a 100-year time frame. T he IPCC has since updated the 100-year GWP estimates, with some
increasing and some decreasing. For example, the IPCC 2013 Fifth Assessment Report reported the 100 -year GWP for
methane as ranging from 28 to 36. EPA compares the 100-year GWP values in T able 1-3 of its 2018 GHG Inventory.
19 Both the RGGI and California cap-and-trade systems allow offsets as a compliance option (see footnote 4).
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expected to spur innovation in less carbon-intensive technologies and stimulate other behavior
that may decrease emissions.20
Economic modeling indicates that a carbon tax/fee approach could achieve emission reductions,
the level of which would depend on the scope and stringency (i.e., tax or fee level) of the
program.21 For example, to address emissions from fossil fuel combustion—76% of total U.S.
GHG emissions22—policymakers could apply a tax/fee to fossil fuels at approximately 3,000
entities, including coal mines, petroleum refineries, and entities required to report natural gas
deliveries.23
A carbon tax/fee would generate a new revenue stream. The magnitude of the revenues would
depend on the scope and rate of the tax or fee, the responsiveness of covered entities in reducing
their potential emissions, and multiple other market factors. A 2016 Congressional Budget Office
study estimated that a $25/ton carbon tax would yield approximately $100 bil ion in the first year
of the program.24
When designing a carbon tax/fee system, one of the more controversial and chal enging questions
for policymakers is how, to whom, and for what purpose the new tax or fee revenues could be
applied. Congress would face the same issues that would be encountered during a debate over
emission al owance value distribution in a cap-and-trade system.
When deciding how to al ocate the revenues, policymakers would encounter trade-offs among
objectives. The central trade-offs involve minimizing economy-wide costs, lessening the costs
borne by specific groups—particularly low-income households and displaced workers or
communities—and supporting a range of specific policy objectives.
A primary argument against a carbon tax/fee system (and a cap-and-trade program) is the concern
about the economy-wide costs that a carbon price could impose. The potential costs would
depend on a number of factors, including the magnitude, design, and use of revenues of the
carbon tax or fee.
Others who may oppose a carbon tax system express opposition to federal taxes in general or the
possibility that the revenues would enable greater federal spending. Owners of coal resources, in
particular, would likely lose asset values under a carbon tax system—as under a cap-and-trade
system—to the degree that coal becomes less competitive under the costs of emission reductions.

20 T his differs from a price system that applies to energy content, such as a tax based on British thermal units (Btu). In
1993, President Clinton proposed a deficit reduction package that included a t ax based on energy content, measured in
Btu. T he goals of the 1993 Btu tax proposal were to promote energy conservation and raise revenue. At the time, the
proposed tax would have generated a new revenue stream of about $30 billion per year. T he proposal was met with
strong opposition and was not enacted; Congress ultimately enacted an approximately five-cent-per-gallon increase in
the motor fuels taxes.
21 See, for example, Alexander R. Barron et al., “Policy Insights from the EMF 32 Study on U.S. Carbon T a x
Scenarios,” Climate Change Economics, vol. 9, no. 1 (2018).
22 EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2017, April 2019.
23 See T able A-1 in CRS Report R45625, Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax or
Em issions Fee: Considerations and Potential Im pacts
, by Jonathan L. Ramseur and Jane A. Leggett .
24 Congressional Budget Office, Options for Reducing the Deficit: 2017-2026, 2016.
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GHG Emission Reduction Legislation by Congress
This section compares GHG emission reduction legislation from the 108th Congress to the 116th
Congress by including a separate legislative table for each Congress.25 The tables compare the
bil s by their overal framework, scope, stringency, and selected design elements. Categories of
comparison include
General framework: the proposed program structure—emissions cap, emissions
tax or fee, or some combination of both—and scope in terms of emissions
covered (multiple GHG emissions or just CO2 emissions).
Covered entities/materials: the industries, sectors, or materials that would be
subject to the program.
Emissions limit or target: the GHG or CO2 emissions target or cap for a
particular year. Some targets/caps would apply only to covered sources; others
apply to total U.S. GHG emissions.
Distribution of allowance value or tax revenue: how emission al owance value
or carbon tax or fee revenue would be distributed (if applicable).
Offset and international allowance treatment: the degree to which offsets and
international al owances could be used for compliance purposes and the types of
offset activities that would qualify. Some proposals limit offsets by percentage of
required reductions; others limit offsets as a percentage of al owance
submissions.
Mechanism to address carbon-intensive imports: a central concern with a U.S.
GHG reduction program is that it could raise U.S. prices more than goods
manufactured abroad, potentially creating a competitive disadvantage for some
domestic businesses, particularly carbon-intensive, trade-exposed industries.
Policymakers could address these potential impacts in several ways—for
example, through border adjustments, tax rebates, or emission al owances
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.


25 One GHG emission reduction bill was introduced in the 107th Congress. Senator Jeffords introduced S. 556, which
would have amended the Clean Air Act to reduce CO2 emissions from elect ric power plants to below 1990 levels.
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Table 1. GHG Emission Reduction Proposals: 108th Congress
Ordered Chronological y 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
Cap-and-trade
Electric power, industrial,
Cap of 5,896 mtCO2e
Determined by
From 2010
No specific
No specific
Lieberman
system for
or commercial entities that
for covered sources by
the Secretary of
through 2015,
provision
provision
Jan. 9, 2003
GHG emissions
emit over 10,000 mtCO2e
2010 (equivalent to
Commerce;
up to 15% of
Discharged by
from multiple
annual y; any refiner or
2000 levels), reduced by al owances
submitted
unanimous
sectors
importer of petroleum
the level of emissions
provided to
al owances can
consent by the
products for transportation from non-covered
covered entities at
come from
Senate Committee
use that, when combusted,
sources; cap of 5,123
no cost and to the
domestic or
on Environment
wil emit over 10,000
mtCO2e for covered
newly established,
international
and Public Works
mtCO2e annual y; and any
sources by 2016
nonprofit Climate
offsets; after
on Oct. 29, 2003
importer or producer of
(equivalent to 1990
Change Credit
2015, 10% of
HFC, PFC, and SF6 that,
levels), reduced by the
Corporation,
submitted
S.Amdt. 2028,
when used, wil emit over
level of emissions from
which may use
al owance can
which contained
10,000 mtCO2e
non-covered sources
al owance to help
come from
similar provisions,
energy consumers
offsets
was not agreed to
with increased
on Oct. 30, 2003
prices and provide
transition
assistance to
dislocated
workers and
communities
S. 366
Cap-and-trade
Fossil-fuel-fired electric
Cap on electric power
EPA al ocates free
No specific
No specific
No specific
Jeffords
system for CO2 generating facilities with a
emissions of 2.05 bil ion
al owances to the
provision
provision
provision
Feb. 12, 2003
emissions from
capacity of greater than 15
metric tons in 2009
fol owing:
power plants;
megawatts
(equivalent to 1995
60% to
also addresses
emissions)
households to
other air
al eviate increased
pol utants
electricity prices
(mercury,
CRS-7


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


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


Table 2. GHG Emission Reduction Proposals: 109th Congress
Ordered Chronological y 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
Cap-and-trade system for
Fossil-fuel-fired
Cap on
In 2010, EPA al ocates
No specific
No specific
No specific
Jeffords
CO2 emissions from power
electric generating
electric
free al owance to the
provision
provision
provision
Jan. 25, 2005
plants; also addresses other
facilities with a
power
fol owing:
air pol utants (mercury,
capacity of greater
emissions of
60% to households to
sulfur dioxide, nitrogen
than 15 megawatts
2.05 bil ion
al eviate increased
oxide)
metric tons
electricity prices
in 2010
6% for worker
transition assistance
20% for renewable
energy and energy
efficiency
10% to electricity
generation facilities
1% for forest
sequestration
2% for geologic
sequestration
S. 342
Cap-and-trade system for
Electric power,
Cap of
Determined by the
Up to 15% of
No specific
No specific
McCain
GHG emissions from
industrial, or
5,896
Secretary of
submitted
provision
provision
Feb. 10, 2005
multiple sectors
commercial entities
mtCO2e for
Commerce; al owances
al owances can
that emit over 10,000
covered
provided to covered
come from
mtCO2e annual y; any
sources by
entities at no cost and
domestic or
refiner or importer of
2010
to the newly
international
petroleum products
(equivalent
established, nonprofit
offsets; if offsets
for transportation use
to 2000
Climate Change Credit
account for 15%
that, when
levels),
Corporation, which
of al owances, at
CRS-10


Bill
Number,
Sponsor,

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


Bill
Number,
Sponsor,

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


Bill
Number,
Sponsor,

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


Bill
Number,
Sponsor,

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


Bill
Number,
Sponsor,

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


Bill
Number,
Sponsor,

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


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


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


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


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


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


Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
18% (plus an early
auction of 6%)
auctioned to fund
technology
deployment, carbon
capture and storage,
low-income and
rural assistance, and
adaptation activities
S. 3036
Cap-and-trade
Producers or importers
Emission cap
A share of
Up to 15% of
International
Low carbon fuel
Boxer
system for GHG
of petroleum- or coal-
for covered
al owances are
al owance
reserve
standard for
May 20, 2008
emissions from
based liquid or gaseous
sources in
auctioned for deficit
requirement may
al owances must
transportation fuels
S.Amdt. 4825
multiple sectors
fuel that emits GHGs,
2020 is 4.924
reduction increasing
be achieved
accompany
(in the nature of
A Carbon
or facilities that
bil ion tCO2e
from 6.1% in 2012
through domestic
imports of any
substitute) failed
Market Efficiency produce or import
(19% below
to 15.99% in 2031
offsets;
covered GHG-
a cloture motion
Board may
more than 10,000
2005 levels
and thereafter
international
intensive goods
on June 6, 2008
implement cost-
mtCO2e of GHG
for covered
The “remainder
al owances can
and primary
relief measures if
chemicals annual y;
sources)
al owances” are
satisfy an
products to the
necessary
facilities that use more
distributed in 2012
additional 15%
United States
than 5,000 tons of coal

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


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


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


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


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


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


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

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

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


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


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


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


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


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

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


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


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


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


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


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


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


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


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


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


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


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

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


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


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

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


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


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


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


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


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

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


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


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


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


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

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


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


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


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


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


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


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


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


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


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


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


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


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


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

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

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


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

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


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

Market-Based Greenhouse Gas Emission Reduction Legislation



Author Information

Jonathan L. Ramseur

Specialist in Environmental Policy



Disclaimer
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Congressional Research Service
R45472 · VERSION 16 · UPDATED
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