Market-Based Greenhouse Gas Emission Reduction Legislation: 108th Through 117th Congresses

January 25, 2019 – July 18, 2022 R45472

Market-Based Greenhouse Gas Emission
July 18, 2022
Reduction Legislation: 108th Through 117th
Jonathan L. Ramseur
Congresses
Specialist in Environmental
Policy
Congressional interest in market-based greenhouse gas (GHG) emission control legislation has

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

approaches would place a price—directly or indirectly—on GHG emissions or their inputs,
namely fossil fuels. Both would increase the price of fossil fuels, and both would reduce GHG emissions to some degree.
Both would allow covered entities to choose the best way to meet their emission requirements or reduce costs, potentially by
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 117th Congresses, most of the introduced bills would have established carbon
tax or emissions fee programs. The proposals ranged in the scope of emissions covered from CO2 emissions from fossil fuel
combustion to multiple GHG emissions from a broader array of sources. In addition, the proposals differed by how, to whom,
and for what purpose the fee revenues or allowance value would be applied. Some economic analyses indicate that policy
choices to distribute the tax, fee, or emission allowance revenue would yield greater economic impacts than the direct
impacts of the carbon price.
Number and Type of Introduced GHG Emission Reduction Bills
108th Congress through 117th Congress

Source: Prepared by CRS.
Notes: “Other Approaches” include (1) proposals that did not specify the overall framework but would have authorized EPA to
establish a GHG emission reduction program and (2) proposals that combine elements from a cap-and-trade system with price
control features in a carbon tax or emissions fee system, sometimes described as hybrid approaches.
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Market-Based Greenhouse Gas Emission Reduction Legislation

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

1 U.S. EPA, “EPA’s Climate Change Indicators in the United States,” https://www.epa.gov/climate-indicators/climate-
change-indicators-atmospheric-concentrations-greenhouse-gases.
2 For the latest U.S. assessment of the human contribution to climate change, see Intergovernmental Panel on Climate
Change, Global Warming of 1.5°C, Special Report, 2018; and U.S. Global Change Research Program, Fourth National
Climate Assessment, vol. II: Impacts, Risks, and Adaptation in the United States, 2018. See also CRS Report R45086,
Evolving Assessments of Human and Natural Contributions to Climate Change, by Jane A. Leggett.
3 Some countries have levied carbon taxes (or something similar) for over 20 years. For a review of carbon prices in
other countries, see World Bank, State and Trends of Carbon Pricing 2020, https://openknowledge.worldbank.org/
handle/10986/33809. The European Union established a cap-and-trade program in 2005 and covers emissions from the
electricity sector, selected energy-intensive industries, and aviation. See, for example, Climate Action Tracker,
https://climateactiontracker.org; and Climate Watch, https://www.climatewatchdata.org/.
4 A number of U.S. states have taken action requiring GHG emission reductions. The most aggressive actions have
come from California and from the Regional Greenhouse Gas Initiative (RGGI)—a coalition of 11 states from the
Northeast and Mid-Atlantic regions. The RGGI is a cap-and-trade system that took effect in 2009 that applies to CO2
emissions from electric power plants. (See CRS Report R41836, The Regional Greenhouse Gas Initiative: Background,
Impacts, and Selected Issues, by Jonathan L. Ramseur.) California established a cap-and-trade program that took effect
in 2013. California’s cap covers multiple GHGs, which account for approximately 85% of California’s GHG emissions.
For more details, see the California Air Resources Board website, https://www.arb.ca.gov/cc/capandtrade/
capandtrade.htm. In addition to its emissions cap, California has adopted a range of other climate change mitigation
policies (e.g., renewable energy portfolio standards).
5 The 1990 Clean Air Act Amendments established a market-based cap-and-trade program to control the air emissions
(sulfur dioxide and nitrogen oxides) that lead to acid rain. Although controversial at its inception, the program is widely
considered a success. See, for example, Gabriel Chan et al., The SO2 Allowance Trading System and the Clean Air Act
Amendments of 1990: Reflections on Twenty Years of Policy Innovation, Harvard Environmental Economics Program,
2012, https://www.belfercenter.org/sites/default/files/legacy/files/so2-brief_digital4_final.pdf.
6 See CRS In Focus IF11791, Mitigating Greenhouse Gas Emissions: Selected Policy Options, by Jonathan L. Ramseur
et al.; CRS Report R41973, Climate Change: Conceptual Approaches and Policy Tools, by Jane A. Leggett.
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renewable energy sources7 and carbon capture and sequestration efforts.8 In addition, Congress
enacted the American Innovation and Manufacturing (AIM) Act of 2020 to phase down
hydrofluorocarbons, potent GHGs used in air conditioning and refrigeration equipment.9
Members of Congress have expressed a range of perspectives regarding climate change issues.
For example, between the 112th Congress and going through the 115th Congress, Members
introduced resolutions in both the House and Senate expressing the view that a carbon tax is not
in the economic interests of the United States. In 2014 and 2018, the House passed resolutions
“expressing the sense of Congress that a carbon tax would be detrimental to the United States
economy” (H.Con.Res. 89 and H.Con.Res. 119, respectively). In the 117th Congress, during
debate on S.Con.Res. 5, the Senate voted (50-50) on S.Amdt. 887, which would “establish a
deficit-neutral reserve fund relating to prohibiting a Federal carbon tax.”
This report provides a comparison of the legislative proposals from the 108th through the 117th
Congresses that were and are designed primarily to reduce GHG emissions using market-based
approaches such as cap-and-trade or carbon tax/fee programs. As Figure 1 illustrates, between the
108th and 111th Congresses, most of the market-based climate mitigation bills would have
established cap-and-trade systems. Between the 112th and 117th Congresses, most of the
introduced bills would have established carbon tax or emissions fee programs.
In the 111th Congress, Members offered multiple and varied proposals,10 ultimately resulting in
the House passage of H.R. 2454, an economy-wide cap-and-trade bill.11 A companion bill in the
Senate (S. 1733) was ordered reported from the Committee on Environment and Public Works,
but the bill 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
Key EPA rulemakings in the electric power sector include the Obama Administration’s 2015
Clean Power Plan (CPP) final rule13 and the Trump Administration’s 2019 Affordable Clean
Energy (ACE) final rule,14 which repealed and replaced the CPP. In January 2021, a federal
appellate court vacated and remanded the ACE rule.15 In June 2022, the Supreme Court held that

7 See CRS In Focus IF11316, A Brief History of U.S. Electricity Portfolio Standard Proposals, by Ashley J. Lawson;
and CRS In Focus IF10479, The Energy Credit or Energy Investment Tax Credit (ITC), by Molly F. Sherlock.
8 See CRS Report R44902, Carbon Capture and Sequestration (CCS) in the United States, by Peter Folger.
9 P.L. 116-260, Division S, §103, enacted December 27, 2020. See CRS In Focus IF11779, Hydrofluorocarbon
Phasedown: Issues for Congress, by Kate C. Shouse.
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 Reps. Waxman and Markey, would have covered
approximately 85% of the U.S. GHG emissions. Although not complete coverage, this approach is typically described
as economy-wide.
12 See CRS Report R45204, Vehicle Fuel Economy and Greenhouse Gas Standards: Frequently Asked Questions, by
Richard K. Lattanzio, Linda Tsang, and Bill Canis.
13 For more details, see CRS Report R44341, EPA’s Clean Power Plan for Existing Power Plants: Frequently Asked
Questions, by James E. McCarthy et al.
14 For more details, see CRS Report R46482, EPA’s Affordable Clean Energy Rule and Related Issues: Frequently
Asked Questions, coordinated by Kate C. Shouse.
15 For more background, see CRS Legal Sidebar LSB10666, Congress’s Delegation of “Major Questions”: The
Supreme Court’s Review of EPA’s Authority to Regulate Greenhouse Gas Emissions May Have Broad Impacts, by
Linda Tsang and Kate R. Bowers. See also Am. Lung Ass'n. v. EPA, No. 19-1140 (D.C. Cir. Jan.. 19, 2021),
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when EPA promulgated the 2015 CPP, the agency exceeded its authority under the Clean Air Act.
Under the West Virginia v. EPA decision, EPA retains the ability to regulate GHG emissions from
power plants and other sources, but it now faces more constraints in how it regulates those
emissions. For more details, see CRS Legal Sidebar LSB10791, Supreme Court Addresses Major
Questions Doctrine and EPA’s Regulation of Greenhouse Gas Emissions, by Kate R. Bowers.
Subsequent executive action from the Biden Administration in this setting will likely continue to
generate interest and debate in Congress.
The proposals in the 117th Congress range in their scope of emissions covered from CO2
emissions from fossil fuel combustion to multiple GHG emissions from a broader array of
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.16
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-117th).
Figure 1. Number and Type of Market-Based GHG Emission Reduction Bills
Introduced in 108th Congress Through 117th Congress

Source: Prepared by CRS.
Notes: “Other Approaches” include (1) proposals that did not specify the overall framework but would have
provided EPA with the authority to establish a GHG emission reduction program and (2) proposals that combine
elements from a cap-and-trade system with price control features in a carbon tax or emissions fee system,
sometimes described as hybrid approaches.

https://www.cadc.uscourts.gov/internet/opinions.nsf/6356486C5963F49185258662005677F6/$file/19-
1140.correctedopinion.pdf.
16 For more information, see CRS Report R45625, Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax
or Emissions Fee: Considerations and Potential Impacts, by Jonathan L. Ramseur and Jane A. Leggett.
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Background
Over the last 15 years, broad GHG emission reduction legislation has generally involved market-
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.17 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 would 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 allowances to improve price certainty.
What Is a GHG Emissions Cap-and-Trade System?
A GHG cap-and-trade system creates an overall limit, or cap, on GHG emissions from certain
sources. Cap-and-trade programs can vary by the sources covered, which often include major
emitting sectors (e.g., power plants and carbon-intensive industries), fuel producers and/or
processors (e.g., coal mines or petroleum refineries), or some combination of both.
The emissions cap is partitioned into emission allowances. Typically, in a GHG cap-and-trade
system, one emission allowance represents the authority to emit one metric ton18 of carbon
dioxide-equivalent (mtCO2e).19 The emissions cap creates a new commodity—the emission
allowance. Policymakers may decide to distribute the emission allowances to covered entities at
no cost (based on, for example, previous years’ emissions), sell the allowances (e.g., through an
auction), or use some combination of these strategies. The distribution of emission allowances is
typically a source of significant debate during a cap-and-trade program’s development, because
the allowances have monetary value.
At the end of each established compliance period (e.g., a calendar year or multiple years),
covered sources submit emission allowances to an implementing agency to cover the number of
tons emitted. If a source did not provide enough allowances to cover its emissions, the source
would be subject to penalties. Covered sources would have a financial incentive to make
reductions beyond what is required, because they could (1) sell or trade unused emission

17 In some instances, legislation would have directed EPA to establish a GHG emissions reduction program with a
market-based approach as one option. An alternative approach to a market-based system might involve regulatory
directives that require emission performance standards for specific sources or the application of best available control
technology.
18 A metric ton is approximately 2,205 pounds. A short ton equals 2,000 pounds.
19 This term of measure (CO2e) is used because GHGs vary by global warming potential (GWP). GWP is an index
developed by the Intergovernmental Panel on Climate Change (IPCC) that allows comparisons of the heat-trapping
ability of different gases over a period of time, typically 100 years. Consistent with international GHG reporting
requirements, EPA’s most recent GHG inventory (2018) uses the GWP values presented in the IPCC’s 2007 Fourth
Assessment Report. For example, based on these GWP values, a ton of methane is 25 times more potent than a ton of
CO2 when averaged over a 100-year time frame. The IPCC has since updated the 100-year GWP estimates, with some
increasing and some decreasing. For example, the IPCC 2013 Fifth Assessment Report reported the 100-year GWP for
methane as ranging from 28 to 36. EPA compares the 100-year GWP values in Table 1-3 of its 2018 GHG Inventory.
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allowances to entities that face higher costs to reduce their facility emissions, (2) reduce the
number of emission allowance they need to purchase, or (3) bank them, if allowed, to use in a
future year.
The use of emission offsets as a compliance option received attention during debate over cap-and-
trade programs. An offset is a measurable reduction, avoidance, or sequestration of GHG
emissions from a source not covered by an emission reduction program. Economic analyses of
cap-and-trade proposals concluded that offset treatment (i.e., whether or not to allow their use
and, if so, to what degree) would have a substantial impact on overall program cost. This is
because some emissions and sources often not covered in cap-and-trade programs can reduce
emissions at a lower cost per ton than many typically covered sources. However, the use of
offsets generates considerable controversy, primarily over the concern that difficult-to-assess or
fraudulent offsets could create uncertainty about the quantity of emission reductions.20
In addition, other mechanisms—such as allowance banking or borrowing—may be included to
increase the flexibility of the program and, generally, reduce the costs.
What Is a Carbon Tax or Emissions Fee?
In a carbon tax or emissions fee program, policymakers attach a price to GHG emissions or the
inputs that create them. A carbon tax/fee on emissions or emissions inputs—namely fossil fuels—
would increase the relative price of the more carbon-intensive energy sources. This result is
expected to spur innovation in less carbon-intensive technologies and stimulate other behavior
that may decrease emissions.21
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.22 For example, to address emissions from fossil fuel combustion—76% of total U.S.
GHG emissions23—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.24
A carbon tax/fee would generate a new revenue stream. The magnitude of the revenues would
depend on the scope and rate of the tax or fee, the responsiveness of covered entities in reducing
their potential emissions, and multiple other market factors. A 2016 Congressional Budget Office
study estimated that a $25/ton carbon tax would yield approximately $100 billion in the first year
of the program.25
When designing a carbon tax/fee system, one of the more controversial and challenging questions
for policymakers is how, to whom, and for what purpose the new tax or fee revenues could be

20 Both the RGGI and California cap-and-trade systems allow offsets as a compliance option (see footnote 4).
21 This differs from a price system that applies to energy content, such as a tax based on British thermal units (Btu). In
1993, President Clinton proposed a deficit reduction package that included a tax based on energy content, measured in
Btu. The goals of the 1993 Btu tax proposal were to promote energy conservation and raise revenue. At the time, the
proposed tax would have generated a new revenue stream of about $30 billion per year. The proposal was met with
strong opposition and was not enacted; Congress ultimately enacted an approximately five-cent-per-gallon increase in
the motor fuels taxes.
22 See, for example, Alexander R. Barron et al., “Policy Insights from the EMF 32 Study on U.S. Carbon Tax
Scenarios,” Climate Change Economics, vol. 9, no. 1 (2018).
23 EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2017, April 2019.
24 See Table A-1 in CRS Report R45625, Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax or
Emissions Fee: Considerations and Potential Impacts, by Jonathan L. Ramseur and Jane A. Leggett.
25 Congressional Budget Office, Options for Reducing the Deficit: 2017-2026, 2016.
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applied. Congress would face the same issues that would be encountered during a debate over
emission allowance value distribution in a cap-and-trade system.
When deciding how to allocate the revenues, policymakers would encounter trade-offs among
objectives. The central trade-offs involve minimizing economy-wide costs, lessening the costs
borne by specific groups—particularly low-income households and displaced workers or
communities—and supporting a range of specific policy objectives.
A primary argument against a carbon tax/fee system (and a cap-and-trade program) is the concern
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.
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.26 The tables compare the
bills by their overall framework, scope, stringency, and selected design elements. Categories of
comparison include the following:
 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 allowance value
or carbon tax or fee revenue would be distributed (if applicable).
 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. Some proposals limit offsets by percentage of
required reductions; others limit offsets as a percentage of allowance
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 allowances
provided at no cost to selected industrial sectors. For more information, see CRS

26 One GHG emission reduction bill was introduced in the 107th Congress. Sen. Jeffords introduced S. 556, which
would have amended the Clean Air Act to reduce CO2 emissions from electric power plants to below 1990 levels.
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Report R47167, Border Carbon Adjustments: Background and Recent
Developments, by Jonathan L. Ramseur, Brandon J. Murrill, and Christopher A.
Casey.
 Additional GHG reduction measures: other mechanisms that are designed to
further reduce GHG emissions that are not covered in the central program.
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Table 1. GHG Emission Reduction Proposals: 108th Congress
Ordered Chronologically by Introduced Date
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
annually; any refiner or
2000 levels), reduced by allowances
submitted
unanimous
sectors
importer of petroleum
the level of emissions
provided to
allowances 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 annually; 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 SF
levels), reduced by the
Corporation,
submitted
S.Amdt. 2028,
6 that,
when used, wil emit over
level of emissions from
which may use
allowance can
which contained
10,000 mtCO
non-covered sources
allowance to help
come from
similar provisions,
2e
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 allocates free
No specific
No specific
No specific
Jeffords
system for CO2 generating facilities with a
emissions of 2.05 bil ion
allowances 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
alleviate increased
pol utants
electricity prices
(mercury,
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
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
Allotted 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-9

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;
allowances can
from multiple
annually; any refiner or
emissions from non-
allowances
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 annually; and any
nonprofit Climate
of allowances, 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
allowance 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-10

Table 2. GHG Emission Reduction Proposals: 109th Congress
Ordered Chronologically by Introduced Date
Bill
Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
Distribution of
International
Carbon-
GHG
or Floor
Covered
Limit or
Allowance Value or
Allowance
Intensive
Reduction
Action
General Framework
Entities/Materials
Target
Tax/Fee Revenue
Treatment
Imports
Measures
S. 150
Cap-and-trade system for
Fossil-fuel-fired
Cap on
In 2010, EPA allocates
No specific
No specific
No specific
Jeffords
CO2 emissions from power
electric generating
electric
free allowance 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
alleviate 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; allowances
allowances can
that emit over 10,000
covered
provided to covered
come from
mtCO2e annually; 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 allowances, at
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
combusted, wil emit
reduced by
may use allowance to
least 1.5% must
over 10,000 mtCO2e
the level of
help energy consumers
come from
annually; 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; allowances
allowances can
that emit over 10,000
covered
provided to covered
come from
mtCO2e annually; 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 allowances, at
combusted, wil emit
reduced by
may use allowance to
least 1.5% must
over 10,000 mtCO2e
the level of
help energy consumers
come from
annually; 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-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
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
Allotted 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; allowances
allowances can
that emit over 10,000
covered
provided to covered
come from
mtCO2e annually; 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 allowances, at
combusted, wil emit
reduced by
may use allowance to
least 1.5% must
over 10,000 mtCO2e
the level of
help energy consumers
come from
annually; and any
emissions
with increased prices
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
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; allowances
allowances can
that emit over 10,000
covered
provided to covered
come from
mtCO2e annually; 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 allowances, at
combusted, wil emit
reduced by
may use allowance to
least 1.5% must
over 10,000 mtCO2e
the level of
help energy consumers
come from
annually; 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
Udall
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
allowances 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
allowances
worker transition
processes, excluding
distributed
assistance
methane from animals based on
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
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
Allotted 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
sell via auction and
regulations to
2020; 80%
distribute to non-
reduce GHG
below 1990
covered sources to
emissions,
CRS-15

Table 3. GHG Emission Reduction Proposals: 110th Congress
Ordered Chronologically by Introduced Date
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
S. 280
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
allowances can
multiple sectors
emit over 10,000
sources by
come from
mtCO2e annually; 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 allowances, at
emit over 10,000
covered
least 1.5% must
mtCO2e annually; 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 all
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
Initially 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 allowances sold
be achieved with
via auction gradually
EPA-approved
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 all
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
S. 1177
Cap-and-trade
Fossil-fuel-fired electric
2001 CO2
Allotted to covered
Determined by
No specific
No specific provision
Carper
system for CO2
generating facilities that
emission
sources based on
EPA
provision
Apr. 20, 2007
emissions from
have a capacity of
levels by
previous years
electricity
greater than 25
2015
emission levels
sector; also
megawatts and generate
addresses other
electricity for sale
air pol utants
(mercury, sulfur
dioxide, nitrogen
oxide)
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 sell 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)
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
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
allowances allocated domestic offsets;
reserve
July 11, 2007
emissions from
plants, and imports of
covered
to covered and
international
allowances must
multiple sectors
petroleum products,
sources by
certain industrial
offsets limited to
accompany
with allowance
coke, or natural gas;
2020
entities
10% of a
imports of any
price ceiling: in
entities that consume
23% allocated 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
annually 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
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),
Allows 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% annually
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
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
(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
allowance
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 annually;
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
sources by
goods or
mtCO2e annually; and
2020
services
importers or producers
imported into
of HFCs, PFCs, or SF6
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
allowances allocated allowance
reserve
standard for
Oct. 18, 2007
emissions from
based liquid or gaseous
sources in
to covered electric
requirement may
allowances 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% allocated to
offsets;
covered GHG-
Committee on
more than 10,000
2005 levels
states for
international
intensive goods
Environment
mtCO2e of GHG
conservation, extra
and primary
chemicals annually;
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
and Public
facilities that use more
for covered
reductions, and
offsets can satisfy
products to the
Works on Dec.
than 5,000 tons of coal
sources)
other activities
an additional 15%
United States
5, 2007
annually; natural gas
11.5% for various
Least developed
processing plants or
sequestration
nations or those
importers (including
activities
that contribute
liquid natural gas
no more than
[LNG]); or facilities that
10% allocated for
0.5% of global
emit more than 10,000
electricity consumer
emissions are
mtCO
assistance
2e of HFCs
excluded
annually as a byproduct
5% for early
of HFC production
reductions
0.5% for tribal
governments
18% (plus an early
auction of 6%)
auctioned to fund
technology
deployment, carbon
capture and storage,
low-income and
rural assistance, and
adaptation activities
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
allowances are
allowance
reserve
standard for
May 20, 2008
emissions from
based liquid or gaseous
sources in
auctioned for deficit
requirement may
allowances 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
allowances can
and primary
chemicals annually;
sources)
allowances” are
facilities that use more
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
low income and
rural assistance, and
adaptation activities,
as well 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
allowance
reserve
emission
June 4, 2008
emissions from
emit over 10,000
sources in
allowances would
requirement may
allowances 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
“trade-exposed
offsets;
covered GHG
that exceed 10,000
products that, when
primary goods”
international
intensive goods
tCO2e per year
combusted, wil emit
Remaining 94%
offsets or
and primary
Low-carbon fuel
over 10,000 mtCO2e
auctioned (100% by
allowances can
products to the
standard for
annually; local
2020), with
satisfy an
United States
transportation fuels
distribution companies
revenues distributed additional 15%
Least developed
that deliver natural gas
Performance
(in FY2010-FY2019)
nations or those
that, when combusted,
standard for certain
as fol ows:
that contribute
wil emit over 10,000
coal-fired power
no more than
tCO
58.5% to middle-
plants to capture and
2e annually;
0.5% of global
producers or importers
and low-income
geologically sequester
emissions are
of HFCs, PFCs, SF
households as tax
not less than 85% of
6, or
excluded
NF
credits and/or
their CO2 emissions
3 that, when used,
wil emit over 10,000
rebates
mtCO2e; sites at which
12.5% for
CO2 is geological y
development and
sequestered on a
promotion of low-
commercial scale
carbon technology
12.5% for energy
efficiency programs
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
4.5% for biological
sequestration
1.5% for worker
transition assistance
2% for domestic
adaptation efforts
1.5% for protection
of natural resources
1.5% for
international forest
protection
3.5% for
international clean
technology
2% for international
adaptation efforts
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
allowances are
allowance
reserve
regulations that
June 19, 2008
emissions from
based liquid or gaseous
sources in
allocated to electric
requirement may
allowances 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
allocated 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
allowances are
allowances can
and primary
relief measures
chemicals annually;
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
annually; natural gas
nations or those
processing plants or
54% for consumer
that contribute
importers (including
assistance (66% of
which goes toward
no more than
CRS-26

Table 4. GHG Emission Reduction Proposals: 111th Congress
Ordered Chronologically by Introduced Date
Bill Number,
Sponsor,
Mechanism to
Introduced
Distribution of
Offset and
Address
Date, and
Emissions
Allowance Value
International
Carbon-
Committee or
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Additional GHG
Floor Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Reduction Measures
H.R. 594
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 sell 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 allow 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
allowance price
board to manage
path; precise use of
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 allowance
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 allowances
27% of an entity’s
industries to
that controls HFC
Reported by the
multiple sectors
fluorinated gas
from covered or auction revenue)
allowance
receive
emissions
Committee on
producers and
sources by
in the fol owing
obligation can be
allowances 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 small
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
allowance
R40643,
category so that all 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-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
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 allowance
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:
allowance
receive

many to be the
producers and
sources by
30% (at minimum)
submission can
allowances 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
allowance
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 all 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)
allowances 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-34

Table 5. GHG Emission Reduction Proposals: 112th Congress
Ordered Chronologically by Introduced Date
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
H.R. 3242
Tax on CO2
Manufacturers,
80%
Tax revenue is
No specific
Border
No specific provision
Stark
emissions from
producers, or
reduction of
distributed annually
provision
adjustment fees
Oct. 24, 2011
combustion of
importers who sell 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
CO
and any other organic
number
2 emissions,
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 seller 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-36

Table 6. GHG Emission Reduction Proposals: 113th Congress
Ordered Chronologically by Introduced Date
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
S. 332
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 annually
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-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/mtCO
requirements in 40
(percentages not
that is equivalent emit more than
2
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 annually
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-40

Table 7. GHG Emission Reduction Proposals: 114th Congress
Ordered Chronologically by Introduced Date
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Distribution of
Offset and
Address
Committee
Emissions
Allowance Value
International
Carbon-
Additional GHG
or Floor
General
Covered
Limit or
or Tax/Fee
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Revenue
Treatment
Imports
Measures
H.R. 972
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 seller 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-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
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 annually
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-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
industry displaced
by the act
Although not
explicitly tied to the
GHG tax revenue,
the bil would
gradually 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-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
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
annually 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-44

Table 8. GHG Emission Reduction Proposals: 115th Congress
Ordered Chronologically by Introduced Date
Bill Number,
Sponsor,
Introduced
Mechanism to
Date, and
Offset and
Address
Additional
Committee
Emissions
International
Carbon-
GHG
or Floor
General
Covered
Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
H.R. 2014
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 annually
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
gradually 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-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 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 CO
requirements in 40
be used to assist low-income and
costs domestic
GHG reporting
2
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 annually
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-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
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 CO
reporting
cost-mitigation grants to states to
difference in (1)
GHG reporting
2
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 annually
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 shall
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-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
2019, increasing
$50 bil ion (plus the Highway Trust
equivalent to the
by 2% plus
Fund shortfall) 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 annually 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 all
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-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
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 all
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-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
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 annually
comparable
(1) are subject
inflation each
tons of GHGs annually
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-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
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 annually
comparable
(1) are subject
inflation each
tons of GHGs annually
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-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
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
CO
annually, facilities that
comparable
some
2e, increasing
reduction
70% to the Federal Highway Trust
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 CO2
with the carbon
e in
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-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
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-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/mtCO
and importers, natural
combustion
fund are available (after
Secretary of the
fossil fuel
2e
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-57

Table 9. GHG Emission Reduction Proposals: 116th Congress
Ordered Chronologically by Introduced Date
Bill Number,
Sponsor,
Introduced
Offset and
Mechanism to
Date, and
International
Address Carbon-
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
H.R. 763
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
importers
mil ion mtCO2e)
payments to eligible individuals
excess of (1) GHG
GHG regulations; if
by $10 each year
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 emission levels
Exporters of
promulgate
increase
of covered fuels (500
carbon-intensive
regulations to reduce
mil ion mtCO
products (and
emissions from
Provides a
2e) and
monthly dividend
covered fuels) may
covered fuels
rebate for fuels
check reach certain
receive a refund
used on a farm
Directs Department
levels
under an analogous
and for fuels or
of Energy to enter
formula
their derivatives
agreement with the
used by U.S.
National Academy of
Armed Forces
Sciences to study
effects of the fee on
emissions from
biomass and resulting
impacts on carbon
sinks
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
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 all 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 H.R.
combustion
derived from these
2025 limit: permits
measures, imports
emissions that are
1960 (Beyer)
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
Department of
refineries and
Secretary of the
production of animals
sold equal to 50%
the Treasury
importers, coal
Treasury—that is
for food or food
below 2005 U.S. CO2
equivalent to the
products” are
Auction revenue
mines and
emissions
costs domestic
excluded
distributed to
importers, and
2040 limit: permits
producers of
individuals, often
natural gas
sold equal to 80%
comparable
described as a
deliverers (as
below 2005 U.S. CO2
products incur due
“cap and
reported on Energy
emissions
to the carbon price
dividend”
Information
approach
Administration
Exporters of
Form 176) and
carbon-intensive
A permit reserve some natural gas
goods may receive
and borrowed
processors
compensation for
permits from
losses related to
future years may
the permit system
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 all 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 Hollen)
Permits sold
materials used for
sold equal to 30%
of carbon-intensive
not covered by the
through
combustion
goods wil be
permit program;
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
quarterly
Covered entities
below 2005 U.S. CO2
subject to a fee—
emissions “directly
auctions by the
include petroleum
emissions
determined by the
attributable to the
Department of
refineries and
2030 limit: permits
Secretary of the
production of animals
the Treasury
importers, coal
sold equal to 50%
Treasury—that is
for food or food
Auction revenue
mines and
below 2005 U.S. CO
equivalent to the
products” are
2
distributed to
importers, and
emissions
costs domestic
excluded
individuals, often
natural gas
producers of
2040 limit: permits
described as a
deliverers (as
comparable
sold equal to 80%
“cap and
reported on Energy
products incur due
below 2005 U.S. CO2
dividend”
Information
to the carbon price
emissions
approach
Administration
Exporters of
Form 176) and
A permit reserve
carbon-intensive
some natural gas
and borrowed
goods may receive
processors
permits from
compensation for
future years may
losses related to
be used to help
the permit system
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 annually
worker assistance programs,
to the carbon price 25,000 mtCO2e
year
and
and (2) the
emissions
comparable costs
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
Fee also applies to
(3) assist the state in climate
(e.g., GHG fees)
Additional fee for
certain industrial
change adaptation or transition
imposed by the
GHG emissions
sources, regardless
to a low-carbon economy; this
nation exporting
(described as
of their emissions
amount increases annually
the material
“associated
output, including
Exporters of
emissions”) resulting
aluminum
energy-intensive
from venting, flaring,
production, HCFC-
goods may receive
and leaking across
22 production and
a refund related to
the coal, natural gas,
HFC-23 destruction,
the increased costs
and petroleum supply
and fluorinated gas
of inputs (i.e., fossil
chains (as determined
production; this fee
fuels) subject to
by Secretary of the
starts as a
the fee
Treasury)
percentage of the
fossil fuel fee and
increases annually
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 wells and
reaching 59% of 2017
allocated 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
emission levels
source for these
products (and
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
are not met, fee
20% to support existing and
payments is not
covered fuels) may
increases by $30;
new infrastructure funding
specified
receive a refund
if annual targets
programs and other objectives
under an analogous
met, fee does
5% to the Department of
formula
not increase
Energy to support
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 wells and
reaching 59% of 2017
allocated 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
Energy to support
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
met, fee does
development of GHG
under an analogous
not increase
mitigation technology and
formula
Fee col ected
related technologies
quarterly
5% to support transition
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
annually by 2.5%
5% allocated 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% allocated 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 allocations,
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
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
costs attributable
to the new tax
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
annually 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 shall
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-
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
$1.5 bil ion for Department of
Agriculture climate-related
research
In addition, the trust fund
provides:
$7 bil ion annually for worker
and community transition
assistance, and
12.5% for an energy refund
program that would provide
monthly payments to
households with incomes up
to 150% of poverty line
Any remaining revenues
support a consumer tax rebate
for households with incomes
up to 350% of the poverty line
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
payments under
$35/mtCO
would decrease to
tax)
2e,
categories—that
increasing
emit more than
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
0.1% for the Leaking
Underground Storage Tank
trust fund
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 wells 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
annually by a
cost of living
adjustment as
defined in the bil
S. 4484
Fee on fossil
Fee imposed on coal Fee increases are
Establishes a trust fund that
No specific
Imports of carbon-
Directs EPA to enter
Durbin
fuels and other
at coal mines and
based on emission
receives appropriations equal
provisions
intensive goods are agreement with the
Aug. 6, 2020
selected GHG
importers, crude oil
targets; targets based
to emission fees received in
subject to a fee
National Academy of
emission sources at refineries and
on percentage
the Treasury; after subtracting
(determined by the
Sciences to study
Fee on fossil
importers, and
reductions compared
fee rebates and, in the first 18
Secretary of the
effects of fee
fuels starts in
natural gas at
to emission levels
years, approximately $5.5
Treasury) that is
program
2022 at
producing wel s and
from covered fuels
bil ion per year, the remaining
equivalent to the
$25/mtCO
importers; and
and sources in 2018:
funds are allocated
difference in (1)
2e,
increasing
select sources that

approximately as fol ows
costs domestic
annually 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)
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
fee increases are

2045: 80% below 2018 5% to support agricultural and
the comparable
greater
2050: 90% below 2018 forestry sequestration
costs imposed by
Fee on other
activities;
the exporting
sources starts in
10% for grants to eligible
nation
2024
entities to support transition
Exporters of fossil
Fee is delayed in
assistance to a lower carbon
fuels and carbon
2022 and 2023 if
economy;
intensive products
unemployment
15% for a newly established
may receive a
rate is 5% or
Climate Change Finance
rebate based on
higher
Corporation to finance “clean
the emissions fee
and manufacturing
A rebate is
energy” and climate change
costs attributable
provided for
resiliency activities, including
to the emissions
carbon capture,
research and development and
fee
sequestration,
commercialization of
and utilization
technologies
activities, if
certain
conditions are
met
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 allocated as
Treasury) that is
CO
equal to the cost
2 emissions;
2025: 30%
fol ows:
tax rate
2030: 40%
that U.S. producers
increases
2035: 50% below
of a comparable
annually by
good incur as a
CRS-70

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

EPA, including
approaches
emissions trading
systems
Establishes a
“federal backstop”
carbon fee in a
state that does not
submit an
acceptable climate
plan, as
determined by
EPA
CRS-72

Bill Number,
Sponsor,
Introduced
Offset and
Date, and
International
Mechanism to Address
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
S. 645
Directs Secretary
Fee imposed on
No specific provisions
Transfers revenues from the
No specific
No specific provisions
No specific
Whitehouse
of the Treasury to
each company that
fee on CH4 emissions to the
provisions
provisions
Mar. 9, 2021
estimate the
produces, gathers,
National Fish and Wildlife
methane (CH4)
processes, or
Foundation to provide grants
emissions and
transmits oil or
through the National Coastal
emission rates
natural gas
Resilience Fund
from each oil- and
Fee on CH4
natural-gas-
emissions based on
producing basin
(1) proportion of oil
Fee starts in 2023
or natural gas
at $1,800/ton,
produced in a
increasing annually
particular location,
by 2% plus
or (2) another
inflation
method of measure
proposed by a
company and
approved by the
Secretary
S. 685
Fee on fossil fuels
Fee imposed on coal Fee increases are
Establishes a trust fund that
No specific
Imports of carbon-
Directs EPA to enter
Durbin
and other selected at coal mines and
based on emission
receives appropriations equal
provisions
intensive goods are subject agreement with the
Mar. 10, 2021
GHG emission
importers, crude oil
targets; targets based
to emission fees received in
to a fee (determined by
National Academy of
sources
at refineries and
on percentage
the Treasury; after subtracting
the Secretary of the
Sciences to study
Fee on fossil fuels
importers, and
reductions compared
fee rebates and, in the first 18
Treasury) that is
effects of fee
starts in 2023 at
natural gas at
to emission levels
years, approximately $5.5
equivalent to the
program
$25/mtCO
producing wel s and
from covered fuels
bil ion per year, the remaining
difference in (1) costs
2e,
Directs the Council
increasing annually
importers; and
and sources in 2018:
funds are allocated
domestic producers of
on Environmental
by $10 plus
select sources that

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

2045: 80% below 2018
and carbon-intensive
resources
CRS-73

Bill Number,
Sponsor,
Introduced
Offset and
Date, and
International
Mechanism to Address
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Fee on other
2050: 90% below 2018 5% to support agricultural and
products may receive a

sources starts in
forestry sequestration
rebate based on the

2025
activities;
emissions fee and
A rebate is
10% for grants to eligible
manufacturing costs
provided for
entities to support transition
attributable to the
carbon capture,
assistance to a lower carbon
emissions fee
sequestration, and
economy;
utilization
15% for a newly established
activities, if certain
Climate Change Finance
conditions are met
Corporation to finance “clean
energy” and climate change
resiliency activities, including
research and development and
commercialization of
technologies
H.R. 2307
Fee on fossil fuels
Covered entities
Emission reduction
Establishes a trust fund that
No specific
Imports of carbon-
Directs Department
Deutch
based on their
include petroleum
targets apply to fossil
receives appropriations equal
provisions
intensive products subject
of Energy to enter
Apr. 1, 2021
GHG content
refineries and
fuel combustion
to emission fee revenues
to a fee—determined by
agreement with the
Fee set at
importers, coal
emissions; starting in
received in the Treasury;
the Secretary of the
National Academy of
$15/mtCO
mines and
2023, annual
monies in the trust fund are
Treasury—equal to the
Sciences to study
2e
emissions in 2021,
importers, natural
reductions of 5% of
available (after administrative
total carbon fee that
effects of the fee on
increasing by $10
gas deliverers and
2010 net GHG levels
expenses) to provide monthly
would have accumulated
emissions from
each year plus
importers
(287 mil ion mtCO2e)
payments to eligible individuals
upon the GHG content of
biomass and resulting
inflation
between 2023 and
(i.e., persons with a Social
the product if the product
impacts on carbon
2030; annual
Security number or taxpayer
were produced in the
sinks
If emission
reductions of 3% of
identification number); adults
United States; the
reduction targets
2010 net GHG levels
get one share and children
Secretary may modify this
are not met, fee
(172 mil ion mtCO
receive a half-share
fee based on mitigation
increases by $15
2e)
between 2031 and
efforts/costs in the
plus inflation; if
2050
country of export
targets met, fee
does not increase
Fee ceases if emissions
Exporters of carbon-
from covered fuels
intensive products (and
CRS-74

Bill Number,
Sponsor,
Introduced
Offset and
Date, and
International
Mechanism to Address
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Provides a rebate
decrease to 10% of
covered fuels) may receive
for fuels used on a
2010 emissions from
a refund based on fee
farm and for fuels
covered fuels (544
levied before exportation
or their
mil ion mtCO2e) and
derivatives used by
monthly dividend
U.S. Armed Forces
check reach certain
levels
H.R. 2451
Fee on fossil fuels
Fee imposed on coal Fee increases are
Establishes a trust fund that
No specific
Imports of carbon-
Directs EPA to enter
Newman
and other selected at coal mines and
based on emission
receives appropriations equal
provisions
intensive goods are subject agreement with the
Apr. 12, 2021
GHG emission
importers, crude oil
targets; targets based
to emission fees received in
to a fee (determined by
National Academy of

sources
at refineries and
on percentage
the Treasury; after subtracting
the Secretary of the
Sciences to study
This proposal is
Fee on fossil fuels
importers, and
reductions compared
fee rebates and, in the first 18
Treasury) that is
effects of fee
identical to S. 685
starts in 2023 at
natural gas at
to emission levels
years, approximately $5.5
equivalent to the
program
(Durbin)
$25/mtCO
producing wel s and
from covered fuels
bil ion per year, the remaining
difference in (1) costs
2e,
Directs the Council
increasing annually
importers; and
and sources in 2018:
funds are allocated
domestic producers of
on Environmental
by $10 plus
select sources that

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

2045: 80% below 2018 5% to support agricultural and
and carbon intensive
resources
Fee on other
2050: 90% below 2018 forestry sequestration
products may receive a

sources starts in
activities;
rebate based on the

2025
emissions fee and
10% for grants to eligible
manufacturing costs
A rebate is
entities to support transition
attributable to the
provided for
assistance to a lower carbon
emissions fee
carbon capture,
economy;
sequestration, and
15% for a newly established
utilization
Climate Change Finance
activities, if certain
Corporation to finance “clean
conditions are met
energy” and climate change
resiliency activities, including
CRS-75

Bill Number,
Sponsor,
Introduced
Offset and
Date, and
International
Mechanism to Address
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
research and development and
commercialization of
technologies
H.R. 3039
Tax on fossil fuels
Tax imposed on
Emission reduction
Establishes a trust fund that
No specific
Imports of carbon-
Establishes a
Fitzpatrick
based on their
coal at coal mines
schedule for covered
would receive appropriations
provisions
intensive goods subject to
conditional
May 7, 2021
potential GHG
and importers,
emissions starts in
equal to 75% of the tax
a border tax—determined
moratorium on
emissions, GHG
petroleum products
2023 at 4,900
revenue received in the
by the Secretary of the
Clean Air Act GHG
emissions from
at refineries and
mmtCO2e; the annual
Treasury; the trust fund would
Treasury—that is
regulations for
specific industrial
importers, and
emission schedule is
provide annual funding for the
equivalent to the costs in
stationary emissions
sources, and GHG natural gas at
cumulative, reaching
fol owing infrastructure
comparable domestic
sources (with some
emissions from
processors or at
47,100 mmtCO2e in
programs (“as provided in
manufactured goods
exceptions)
specific products
point of sale for
2033; assuming annual
appropriations acts”) between
(associated with the
Creates a credit
Tax rate set in
combustion
emission levels
FY2023 and FY2032:
carbon tax)
system, which phases
2023 at
Tax imposed on
fol owed this
70% to the Federal Highway
Exporters of goods that
out after five years,
$35/mtCO
decreasing schedule,
2e,
facilities—in specific
Trust Fund;
are both energy-intensive
for persons making
increasing annually
industrial source
covered emissions
10% to the states as grants to
and trade-intensive may
payments under
by 5% plus
categories—that
would decrease to
allocate to low-income
receive a tax refund
existing state GHG
inflation; if
emit more than
4,000 mmtCO2e in
households;
related to the increased
reduction programs
covered emissions
25,000 mtCO
2033
2e per
costs of inputs (i.e., fossil
Creates a National
do not meet
year
4.2% for various energy-
fuels) subject to the tax
Climate Commission
emission
related research and
Tax imposed on
to set five-year
reduction
development objectives,
facilities that
emission reduction
schedule, the tax
including carbon capture and
manufacture or
goals between 2027
rate increases by
storage and battery
import specified
and 2052 and assess
an additional $4
technology;
products or
the effectiveness of
combust biomass
4.0% for frequent and chronic
federal policies in
with emissions
coastal flooding mitigation and
meeting these goals
above 25,000
adaptation infrastructure
mtCO
projects;
2e
3.0% for displaced energy
workers;
CRS-76

Bill Number,
Sponsor,
Introduced
Offset and
Date, and
International
Mechanism to Address
Additional GHG
Committee or
General
Covered
Emissions Limit or
Distribution of Allowance
Allowance
Carbon-Intensive
Reduction
Floor Action
Framework
Entities/Materials
Target
Value or Tax/Fee Revenue
Treatment
Imports
Measures
Fee starts in 2023
or natural gas
at $1,800/ton,
produced in a
increasing annually
particular location,
by 2% plus
or (2) another
inflation
method of measure
proposed by a
company and
approved by the
Secretary
S. 4355
Imposes an
Domestic charge
No specific provisions
Allocates 75% of the emissions
No specific
Imports of carbon-
No specific
Whitehouse
emissions charge
applies to facilities
charge revenues to the
provisions
intensive goods (“primary
provisions
June 7, 2022
at certain facilities;
that are required to
Department of the Treasury
goods”) are subject to a
charge based on a
report GHG
to establish and implement a
charge based on the
carbon price and
emissions to the
competitive grant program to
domestic carbon price and
the degree to
EPA’s GHG
eligible entities for investments
the difference in carbon
which a facility’s
Reporting Program
in technology that reduce their
intensities between the
carbon intensity
(40 CFR Part 98)
carbon intensity; authorizes
imported good and the
exceeds the
and produce
Treasury to “recapture” grant
carbon intensity of the
intensity of the
primary goods in
funds under certain conditions
relevant U.S. industrial
relevant industrial
specific industries,
Allocates 25% of the revenues
sector; the default
sector
including
to the Department of State for
measure of carbon
Carbon intensity is petroleum and
multilateral assistance to
intensity for imported
a measure of
natural gas
support climate and clean
goods is the exporting
“covered
extraction;
energy programs
country’s gross domestic
emissions” divided
product divided by total
underground coal
by total weight of
production-based
mining;
primary goods
emissions; under certain
produced
iron and steel;
conditions, the
Department of the
Carbon price
chemical
Treasury determines the
starts in 2024 at
manufacturing;
intensity measure for the
$55, increasing
among other
industrial sectors
relevant industrial sector
in the exporting country
CRS-79

Market-Based Greenhouse Gas Emission Reduction Legislation

Author Information

Jonathan L. Ramseur

Specialist in Environmental Policy

Disclaimer
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