Climate Change: Comparison of S. 2191 as Reported (now S. 3036) with Proposed Boxer Amendment

This report discusses S. 2191 (the Lieberman-Warner CLimate Security Act of 2008), which was reintroduced as S. 3036 with a deficit reduction amendment. In particular, it provides a comparison of five key differences between the bill and the proposed Boxer Amendment.

Order Code RL34515 Climate Change: Comparison of S. 2191 as Reported (now S. 3036) with Proposed Boxer Amendment May 30, 2008 Brent D. Yacobucci and Larry Parker Specialists in Energy and Environmental Policy Resources, Science, and Industry Division Climate Change: Comparison of S. 2191 as Reported (now S. 3036) with Proposed Boxer Amendment Summary On December 7, 2007, the Senate Environment and Public Works (EPW) Committee ordered reported an amended version of S. 2191, the Lieberman-Warner Climate Security Act of 2008 (originally entitled America’s Climate Security Act of 2007). On April 10, 2008, an amendment to make the bill revenue-neutral was submitted to CBO for analysis along with the committee version of S. 2191. On May 20, 2008, S. 2191 was reported by EPW. At the same time, Senator Boxer introduced S. 3036, which is identical to the reported version of S. 2191 except that it contains the proposed budget amendment. Both bills were placed on the Senate legislative calendar. On Thursday, May 22, Senator Reid filed for cloture on the motion to proceed on S. 3036. The cloture vote is scheduled for Monday, June 2 at 5:30 pm, with the preceding hour set for debate. In addition to S. 3036, Senator Boxer has proposed an amendment in the nature of a substitute, with significant changes from the committee version of S. 2191. This report provides a comparison of five key differences between S. 2191/S. 3036 and the proposed Boxer Amendment. This report supersedes a CRS Congressional Distribution Memorandum entitled “Comparison of S. 2191 as Reported (now S. 3036) with Proposed Boxer Substitute,” dated May 28, 2008. Contents Cost-Containment Auction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Use of Domestic Offsets, International Offsets, and International Allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Changes in Established Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Allocation Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Carbon Market Oversight Mechanisms . . . . . . . . . . . . . . . . . . . . . . . . . 4 List of Tables Table 1. Estimated Allowances (millions) Allocated Under S. 3036 (S. 2191 as Reported plus Amendment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Table 2. Allocation of Revenues from Auctions of Remainder Allowances Under S. 3036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Table 3. Estimated Allowances Allocated Under Boxer Amendment, Part I (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Table 4. Estimated Allowances Allocated Under Boxer Amendment, Part II (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Table 5. Estimated Allowance Values and Auction Revenues Under S. 3036 (million 2005$) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Table 6. Estimated Allowance Values and Auction Revenues Under Boxer Amendment (million 2005$) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Climate Change: Comparison of S. 2191 as Reported (now S. 3036) with Proposed Boxer Amendment S. 2191 (the Lieberman-Warner Climate Security Act of 20081), introduced by Senator Lieberman, was reported by the Senate Committee on Environment and Public Works (EPW) on May 20, 2008. The bill would establish a mandatory capand-trade system to reduce greenhouse gas emissions from most sectors of the economy.2 As reported, S. 2191’s emissions cap is estimated by its sponsors to require a 71% reduction from 2005 levels by 2050 from covered entities (the covered entities are estimated by the sponsors to account for 87% of total U.S. greenhouse gas emissions). Overall, the sponsors estimate that S. 2191 would reduce total U.S. greenhouse gas emissions by up to 66% from 2005 levels by 2050. On April 10, 2008, a proposed deficit reduction amendment was announced, aimed at making the bill revenue-neutral.3 A new version of the bill, S. 3036 — identical to S. 2191 but also containing the deficit reduction amendment — was introduced May 20, and a cloture motion was filed on that bill May 22. The Senate may begin discussion of S. 3036 the week of June 2. On May 21, 2008, Senator Boxer announced a proposed substitute amendment to the Lieberman-Warner bill.4 This amendment would make significant changes to the bill. For a detailed discussion of key terms and concepts used in this report, see CRS Report RL34489, Climate Change: Costs and Benefits of S. 2191, which provides background and much more detailed analysis of the bill. CRS has identified five key changes that would be made by the Boxer Amendment. These five do not represent all changes in the amendment. Considering the time constraints these five are discussed in this report; other changes may also be of interest in the debate. The five key changes discussed below are: 1 Originally entitled America’s Climate Security Act of 2007. 2 For more a more detailed discussion of S. 2191 (as reported) provisions, see CRS Report RL34489, Climate Change: Costs and Benefits of S. 2191, by Larry Parker and Brent Yacobucci. For a comparison with other proposals, see CRS Report RL33846, Greenhouse Gas Reduction: Cap-and-Trade Bills in the 110th Congress, by Larry Parker and Brent Yacobucci. 3 Submitted to CBO April 9, 2008. CBO, S. 2191, America’s Climate Security Act, with an Amendment (April 10, 2008). 4 As of May 23, 2008, the substitute amendment was available at the EPW website: [http://epw.senate.gov/public/]. CRS-2 ! ! ! ! ! The establishment of a “cost-containment auction” that would expand the number of allowances available in early years; Changes to the limits and applicability of domestic offsets, international offsets, and international allowances; Elimination of the Climate Change Credit Corporation and the establishment of a Climate Change Technology Board; Major changes in the scheme for how allowances are auctioned or distributed at no cost to covered entities and non-covered entities; and Establishment of carbon market oversight mechanisms. Cost-Containment Auction. The Boxer Amendment would establish a “cost-containment auction.” For this auction, the amendment would take a share of allowances from 2031 through 2050 and make them available for auction in the early years of the program (2012 through 2027). At the end of 2012, a maximum of 450 million allowances would be available for sale. In each successive year, the number available would be reduced by 1%. In total, up to 6 billion allowances would be available through these cost-containment auctions. For the auctions, the amendment would establish a “Cost-Containment Auction Price” — effectively a reserve price for the auction. For 2012, the President would determine the initial reserve price of between $22 and $30 per ton. In each successive year, the reserve price would increase by the rate of inflation plus 5%. This provision would essentially allow the borrowing of a limited number of future allowances at a reduced rate. In general, both the bill and the Boxer Amendment allow borrowing, but require a 10% annual rate of interest on borrowed allowances. Assuming the allowance price for a given year is above the “costcontainment price,” participants in the auction will likely bid up the price to something similar to the current allowance price. On the other hand, if the allowance price on the secondary market is below the “cost-containment price,” there may be limited participation in the cost-containment auction. All other things being equal, having a larger pool of allowances early should lower the price of allowances, but it is difficult to predict the magnitude of that price effect. Use of Domestic Offsets, International Offsets, and International Allowances. The Boxer Amendment would substantially alter the amount and type of offsets that covered sources could use to comply with the emissions cap. Under the reported version of the bill, a covered entity could only use domestic offsets and/or international allowances. The Boxer Amendment expands the offset opportunities to include international offsets and international forest credits. In the reported version of the bill, an individual covered entity could meet up to 15% of its allowance requirement through the use of domestic offsets and an additional 15% through the use of international allowances. The Boxer Amendment would eliminate the facility-specific limitation and would direct EPA to restrict the available pool of domestic offsets to 15%, international offsets to 5%, and international forest credits to 10% of the aggregate quantity of emission allowances distributed under the cap. CRS-3 International allowances could be used, if any of the above percentages were not maximized.5 Although the Boxer Amendment would increase flexibility by removing the facility-specific limitation for offset use, the amendment would effectively reduce the total number of offsets potentially available in a given year. The example below illustrates this substantial change: In 2012, both S. 2191 and the Boxer Amendment set the number of allowances available to covered entities at 5,775 million allowances. In the reported version, a covered facility must submit to EPA an allowance, offset, or international allowance for each ton of actual emissions. By allowing facilities to submit offsets and/or international allowances to satisfy up to 30% of their allowance submission (15% from domestic offsets and 15% from international allowances), the total allowance cap (5,775) would essentially represent 70% of actual emissions permitted. For instance, if there was only one covered facility in the United States and it emitted 8,250 million tons of CO2-e in 2012, the facility could submit 5,775 million allowances and 2,475 million tons in offsets and international allowances.6 However, under the Boxer Amendment, the total number of offsets — which would include domestic, international, forestry credits, and international allowances — would be limited to 30% of the aggregate pool of allowances distributed under the cap. Therefore, the hypothetical facility described above could only use 1,733 tons in offsets.7 In addition, eliminating restrictions on the use of certified offsets, the expansion of allowable offset types — international offsets and forest credits — may lower the costs of the cap-and-trade program. Under the reported bill, covered entities had only indirect access (by purchasing international allowances) to these lower-cost reduction opportunities. The Boxer Amendment permits direct use of these options. However, there may be some concern that the increased use of international offsets, particularly those in the forestry sector, could flood the market with possibly questionable emission reductions.8 Changes in Established Entities. The reported version of S. 2191 would establish a Climate Change Credit Corporation to auction allowances under the program. The corporation would use the proceeds from those auctions to fund various purposes, including technology development and adaptation programs. As reported, S. 2191 states that “the Corporation shall not be considered an agency or establishment of the Federal government.” The Boxer Amendment would eliminate 5 An international allowance is an allowance purchased from an approved foreign cap and trade system. In lieu of using or trading the allowance within its own system, a foreign firm could choose to sell the allowance to a U.S. firm, who could use the allowance for compliance with the U.S. program in lieu of an allowance allocated domestically. 6 8,250 x 0.3 = 2,475. 7 5,775 x 0.3 = 1,733 8 See CRS Report RL34436, The Role of Offsets in a Greenhouse Gas Emissions Cap-and-Trade Program: Potential Benefits and Concerns, by Jonathan L. Ramseur. CRS-4 the corporation. Instead, allowances would be auctioned by EPA. The funds from those auctions would be disbursed by a Climate Change Technology Board, explicitly established as an agency of the federal government. Allocation Scheme. Both S. 2191 and the Boxer Amendment use a detailed scheme for allocating allowances to covered entities, non-covered entities, and auctions. The total number of allowances for all years is equal in S. 2191 and the Boxer Amendment, although the timing of those allocations may be different, as the Boxer Amendment allows for the auction of some allowances early (see “CostContainment Auction” above). Further, the reported bill and the Boxer Amendment would distribute those allowances differently. In all years, relative to the reported version, the Boxer Amendment would allocate a larger share of allowances to noncovered entities (e.g., states), and a smaller share for covered entities and for auctions. For example, in 2012, the reported version of S. 2191 would allocate roughly 36% of allowances to covered entities, 33% to non-covered entities, and 31% for auctions. Under the Boxer Amendment, assuming all available cost-containment allowances are purchased, 32% of allowances would go to covered entities, 34% to non-covered entities, and 30% would be auctioned. Table 1 shows allowance allocations in various years for the reported version of S. 2191, as amended by the proposed deficit reduction amendment (identical to the introduced version of S. 3036), and Table 2 shows the allocation of auction revenues. Tables 3 and 4 show allowance allocations in the same years under the Boxer Amendment. For each table, direct allocations to covered sectors are labeled “COV,” direct allocations to noncovered entities are labeled “NC,” and auctions are labeled “AUC.”9 Various groups have modeled the economic effects of S. 2191, including projections of allowance prices in each year of the program. Using one of the lowcost scenarios — EPA’s ADAGE-TECH scenario — estimates of the values of the allowance allocations and auction revenues in S. 2191 and the Boxer Amendment are shown in Tables 5 and 6.10 The same allowance price was used in both tables; however, it should be noted that some of the changes made by the Boxer Amendment would likely reduce costs.11 To the extent that allowance prices increase or decrease in one version of the bill relative to another, the value of allocations and the estimated auction revenues would also increase or decrease. Carbon Market Oversight Mechanisms. The Boxer Amendment would establish a Carbon Markets Working Group including the EPA Administrator, the Secretary of the Treasury, and the Chairmen of the Securities and Exchange Commission, the Commodities Futures Trading Commission, and the Federal Energy Regulatory Commission. The Group must identify “the major issues related to the integrity, efficiency, orderliness, fairness, and competitiveness” of the carbon market, 9 In each of the tables, the allocations are presented in the section-by-section order they appear in the bill or amendment. 10 For a detailed analysis of the assumptions used in EPA’s model, as well as CRS’s assumptions about certain program costs, see CRS Report RL34489, Climate Change: Costs and Benefits of S. 2191, by Larry Parker and Brent Yacobucci. 11 The economic effects of the Boxer Amendment had not been modeled as of May 28, 2008. CRS-5 as well as recommendations for market regulation, policy coordination, contingency planning, and necessary legislative action.12 12 For more information on carbon market regulation, see CRS Report RL34488, Regulating a Carbon Market: Issues Raised By the European Carbon and U.S. Sulfur Dioxide Allowance Markets, by Mark Jickling and Larry Parker. CRS-6 Table 1. Estimated Allowances (millions) Allocated Under S. 3036 (S. 2191 as Reported plus Amendment) 2012 2020 2030 2040 2050 Sec. 3101 (as amended) Sec. 1201 5,775 5,423 4,924 4,510 3,860 3,303 2,796 2,349 1,732 1,455 AUC AUC AUC NC Sec. 3101 (as amended) Sec. 3101 Sec. 3102 Sec. 3201 352 271 1,166 271 414 0 1,646 0 557 0 2,073 0 447 0 1,632 0 277 0 1,011 0 NC NC NC NC NC NC NC Sec. 3301(a) Sec. 3301(b) Sec. 3302 Sec. 3303(b)(1) Sec. 3303(b)(2) Sec. 3303(b)(3) Sec. 3304 NC NC NC COV NC NC COV COV COV COV COV COV NC Sec. 3303(d) Sec. 3401 Sec. 3501 Sec. 3601 Sec. 3701 Sec. 3803 Sec. 3901 Sec. 3901 Sec. 3903(a)(2) Sec. 3901 Sec. 3901 Sec. 3901 Sec. 3907 108 54 108 81 81 81 54 569 27 488 108 217 271 136 1,030 54 8 542 108 108 54 90 45 90 68 68 68 45 474 23 406 90 180 226 113 722 45 7 361 90 90 45 66 33 66 50 50 50 33 347 17 297 66 132 165 83 33 33 0 8 8 8 33 47 23 47 35 35 35 23 247 12 211 47 0 117 59 0 0 0 0 0 0 23 29 15 29 22 22 22 15 153 7 131 29 0 73 36 0 0 0 0 0 0 15 Total Allowances Remainder Allowances Deficit Reduction Fund Early Auction Auction Early Action States Energy Savings Building Efficiency Programs that Exceed Fed. Targets General Allocation - by LIHEAP Share General Allocation - by Population Share General Allocation - by Fossil Production CO2 Mass Transit State Subtotal Tribal Communities Low/Middle-Class Electricity Consumers Low/Middle-Class Natural Gas Consumers CCS Bonus Allowances Domestic Agriculture and Forestry International Forest Protection Fossil Fueled Electric Plants Rural Electric Cooperatives Special Allocation to VA and MT Energy-Intensive Manufacturing Facilities Petroleum Production/Import Facilities HFC Producers/Importers Landfill and Coal Mine Methane Reduction Source: CRS Analysis of S. 2191 as reported by the Senate Committee on Environment and Public Works and as amended by proposed revenue-neutral amendment. CRS-7 Table 2. Allocation of Revenues from Auctions of Remainder Allowances Under S. 3036 (percentage of “remainder allowance” auction revenues after “Off-the-Top”a [designated “ss”] distributions are made) Off-the-Top Allocation of Auction Proceeds BLM Emergency Firefighting Fund Forest Service Emergency Firefighting Fund CSA Management Fund Percentage of Remaining Proceeds Technology Deployment Zero- or Low- Carbon Energy Technology Advanced Coal and Sequestration Technology Fuel from Cellulosic Biomass Advanced Technology Vehicles Manufacturing Incentives Sustainable Energy Program Energy Independence Acceleration Fund Energy Assistance Fund LIHEAP Weatherization Rural Energy Assistance Climate Change Worker Training Fund DOE University Programs Adaptation Fund DOI - Wildlife Conservation and Restoration DOI - Adaptation Activities DOI - Cooperative Grant Programs DOI - Tribal Wildlife Grants Land and Water Conservation Fund Forest Service Adaptation Activities EPA Adaptation Activities Army Corps of Engineers Adaptation Activities Department of Commerce Adaptation Activities Sec. 4302(b)(1) Sec. 4302(b)(2) Sec. 4302(b)(3) Sec. 4302(b)(4)(B) Sec. 4401(1) Sec. 4401(2) Sec. 4401(3) Sec. 4401(4) Sec. 4401(5) Sec. 4302(b)(4)(C) Sec. 4302(b)(4)(D) Sec. 4501(1) Sec. 4501(2) Sec. 4501(2) Sec. 4302(b)(4)(E) Sec. 4606(a) Sec. 4302(b)(4)(F) Sec. 4702(b)(1) Sec. 4702(b)(2) Sec. 4702(b)(3) Sec. 4702(b)(4) Sec. 4702(c) Sec. 4702(d) Sec. 4702(e) Sec. 4702(f) Sec. 4702(g) Sec. 4302(b)(4)(G) 2012 2020 2030 2040 2050 ss ss ss ss ss ss ss ss ss ss ss ss ss ss ss 52% 16.6% 13.0% 3.1% 6.2% 13.0% 2% 18% 9.0% 4.5% 4.5% 5% 1.25% 18% 6.3% 3.42% 0.9% 0.2% 1.8% 0.9% 0.9% 1.8% 1.8% 5% 52% 16.6% 13.0% 3.1% 6.2% 13.0% 2% 18% 9.0% 4.5% 4.5% 5% 1.25% 18% 6.3% 3.42% 0.9% 0.2% 1.8% 0.9% 0.9% 1.8% 1.8% 5% 52% 16.6% 13.0% 3.1% 6.2% 13.0% 2% 18% 9.0% 4.5% 4.5% 5% 1.25% 18% 6.3% 3.42% 0.9% 0.2% 1.8% 0.9% 0.9% 1.8% 1.8% 5% 52% 16.6% 13.0% 3.1% 6.2% 13.0% 2% 18% 9.0% 4.5% 4.5% 5% 1.25% 18% 6.3% 3.42% 0.9% 0.2% 1.8% 0.9% 0.9% 1.8% 1.8% 5% 52% 16.6% 13.0% 3.1% 6.2% 13.0% 2% 18% 9.0% 4.5% 4.5% 5% 1.25% 18% 6.3% 3.42% 0.9% 0.2% 1.8% 0.9% 0.9% 1.8% 1.8% 5% Climate Change and National Security Fund Source: CRS Analysis of S. 2191 as reported by the Senate Committee on Environment and Public Works and as amended by proposed revenue-neutral amendment. a. Auction revenues must first be allocated to these accounts. However, necessary amounts are not specified in the bill, as they depend on a given year’s expenditures from that account. For a more detailed discussion, see CRS Report RL34489, Climate Change: Costs and Benefits of S. 2191. CRS-8 Table 3. Estimated Allowances Allocated Under Boxer Amendment, Part I (millions) Year Section 2012 2020 2030 2040 2050 Total Allowances (millions) Sec. 201 5,775 4,924 3,860 2,796 1,732 Cost Containment Pool Cost Containment Allowances Auctioned Cost Containment Allowances Borrowed Sec. 535 Sec. 536 Sec. 535 6,000 450 0 2,524 415 0 0 0 0 0 0 295 0 0 395 Remaining Allowances 5,775 4,924 3,860 2,501 1,337 Total Available Allowances 6,225 5,339 3,860 2,501 1,337 245 14 58 635 610 25 64 1,040 52 8 209 12 98 542 520 22 54 739 37 6 164 10 116 39 37 2 4 106 5 1 113 6 75 0 0 0 0 0 0 0 60 3 40 0 0 0 0 0 0 0 Allowance Accounts Agriculture and Forestry Program New Technology Incubator Transition Assistance for Workers Transition Assistance for Carbon-Intensive Manufacturers Currently Operating Facilities New Entrant Facilities Petroleum Refiners (Discretionary) Transition Assistance for Fossil Fuel Electric Generators Rural Electric Cooperatives (Maximum) Pilot Program for MT and VA Transition Assistance for Petroleum Fuel Refiners Transition Assistance for Natural Gas Processors Federal Program for Consumers Partnerships with State Governments Customer Assitance Through LDCs Electricity Natural Gas Assistance to States with Heavy Reliance on Manuf. and Coal Manufacturing Coal Source: CRS Analysis of proposed Boxer Amendment. NC AUC COV COV COV COV COV COV COV Sec. 331 Sec. 332(b) Sec. 542(b) Sec. 551(b) Sec. 552(b) Sec. 522(f) Sec. 522(h) Sec. 561(b) Sec. 562(c) Sec. 562(c)(2)(a) COV COV AUC Sec. 571 Sec. 581 Sec. 592(b) 116 43 202 49 37 295 39 29 463 0 0 375 0 0 201 NC NC NC NC NC Sec. 611(a) Sec. 611(a) Sec. 612(a) Sec. 612(b) 549 188 173 87 480 160 160 80 386 135 135 68 250 88 100 50 134 47 53 27 CRS-9 Table 4. Estimated Allowances Allocated Under Boxer Amendment, Part II (millions) Year Partnerships with States, Tribes, and Localities to Reduce Emissions Transportation Sector Efficiency and Conservation Block Grant Program States that Have Led in Reducing Emissions Partnerships with States and Tribes to Adapt to Climate Change Coastal States Freshwater and Agriculture Alaska Indian Tribes Partnerships with States, Tribles, and Localities to Protect Nat. Resources (Wildlife Adaptation) Early Action Program Efficient Buildings Efficient Equipment and Appliances (SEAD Program) Efficient Manufacturing Renewable Energy Low- and Zero-Carbon Electricity Technology Advanced Research (ARPA-E) Carbon Capture and Sequestration (CCS) Technolgy Fund CCS Bonus Allowances Clean Medium- and Heavy-Duty Hybrid Fleets Advanced Vehicle Manufacturers Cellulosic Biofuel Federal Program to Protect Nat. Res. (Firefighting and Wildlife Adapt.) International Forestry International Technology Deployment International Adaptation Deficit Reduction Fund Climate Security Act Administrative Fund Source: CRS Analysis of proposed Boxer Amendment. Section 2012 2020 2030 2040 2050 NC NC NC AUC AUC Sec. 621(c) Sec. 624(a) Sec. 625(a) Sec. 631(b) Sec. 632(b) Sec. 633(a) Sec. 634(a) Sec. 635(d) Sec. 642(b) 58 116 231 173 69 43 35 26 116 98 98 246 160 64 40 32 24 98 106 77 309 135 54 34 27 20 154 69 50 250 100 40 25 20 15 100 37 27 134 53 21 13 11 8 53 NC NC NC NC NC AUC AUC AUC COV NC AUC NC AUC NC AUC AUC AUC AUC Sec. 702 Sec. 811 Sec. 821 Sec. 831 Sec. 841 Sec. 913 Sec. 921 Sec. 1012 Sec. 1021 Sec. 1112 Sec. 1122 Sec. 1131 Sec. 1212(b) Sec. 1323 Sec.1334 Sec. 1342(b) Sec. 1402(b) Sec. 1712 289 43 43 43 231 101 14 58 173 29 58 58 173 58 29 58 332 43 49 37 37 37 197 86 12 49 148 0 49 49 123 49 0 98 394 37 0 29 29 29 154 77 10 0 154 0 39 39 154 39 0 154 531 39 0 19 19 19 25 25 6 0 25 0 25 0 125 25 0 175 419 25 0 10 10 10 13 13 3 0 13 0 13 0 67 13 0 94 224 13 AUC AUC NC CRS-10 Table 5. Estimated Allowance Values and Auction Revenues Under S. 3036 (million 2005$) Year 2012 2020 2030 2040 2050 5775 4924 3860 2796 1732 Allowance Price (2005$/ton) $18.54 $28.30 $46.00 $74.60 $120.80 Deficit Reduction Fund $6,531 $11,705 $25,622 $33,352 $33,455 Early Auction $5,027 $0 $0 $0 $0 $21,616 $46,590 $95,341 $121,784 $122,160 $5,027 $0 $0 $0 $0 Energy Savings $2,011 $2,553 $3,039 $3,505 $3,515 Building Efficiency $1,005 $1,276 $1,519 $1,752 $1,758 Programs that Exceed Fed. Targets $2,011 $2,553 $3,039 $3,505 $3,515 General Allocation - by LIHEAP Share $1,508 $1,915 $2,279 $2,628 $2,637 General Allocation - by Population Share $1,508 $1,915 $2,279 $2,628 $2,637 General Allocation - by Fossil Production CO2 Share Mass Transit $1,508 $1,915 $2,279 $2,628 $2,637 Total Allowances (millions) Auction Early Action States State Subtotal $1,005 $1,276 $1,519 $1,752 $1,758 $10,556 $13,403 $15,953 $18,399 $18,456 $503 $638 $760 $876 $879 Low/Middle-Class Electricity Consumers $9,048 $11,488 $13,674 $15,771 $15,819 Low/Middle-Class Natural Gas Consumers $2,011 $2,553 $3,039 $3,505 $3,515 CCS Bonus Allowances $4,021 $5,106 $6,078 $0 $0 Domestic Agriculture and Forestry $5,027 $6,382 $7,597 $8,761 $8,789 International Forest Protection $2,513 $3,191 $3,798 $4,381 $4,394 Fossil Fueled Electric Plants $19,102 $20,423 $1,519 $0 $0 Rural Electric Cooperatives $1,005 $1,276 $1,519 $0 $0 $151 $191 $0 $0 $0 Tribal Communities Transition Assistance Pilot Projects in VA and MT $10,054 $10,212 $380 $0 $0 Petroleum Production/Import Facilities $2,011 $2,553 $380 $0 $0 HFC Producers/Importers $2,011 $2,553 $380 $0 $0 $1,005 $1,276 $1,519 $1,752 $1,758 BLM Emergency Firefighting Fund $150 $150 $150 $150 $150 Forest Service Emergency Firefighting Fund $430 $430 $430 $430 $430 CSA Management Fund $1,071 $1,393 $1,776 $2,086 $2,092 Technology Deployment Energy-Intensive Manufacturing Facilities Landfill and Coal Mine Methane Reduction $10,382 $23,201 $48,352 $61,942 $62,134 Zero- or Low- Carbon Energy Technology $3,322 $7,424 $15,473 $19,821 $19,883 Advanced Coal and Sequestration Technology $2,595 $5,800 $12,088 $15,485 $15,533 $623 $1,392 $2,901 $3,717 $3,728 Adv. Tech. Vehicles Manufacturing Incentives $1,246 $2,784 $5,802 $7,433 $7,456 Sustainable Energy Program $2,595 $5,800 $12,088 $15,485 $15,533 Fuel from Cellulosic Biomass Energy Independence Acceleration Fund Energy Assistance Fund $399 $892 $1,860 $2,382 $2,390 $3,594 $8,031 $16,737 $21,441 $21,508 $1,797 $4,015 $8,369 $10,721 $10,754 Weatherization $898 $2,008 $4,184 $5,360 $5,377 Rural Energy Assistance $898 $2,008 $4,184 $5,360 $5,377 $998 $2,231 $4,649 $5,956 $5,974 $3,594 $8,031 $16,737 $21,441 $21,508 $998 $2,231 $4,649 $5,956 $5,974 LIHEAP Climate Change Worker Training Fund Adaptation Fund Climate Change and National Security Fund Source: CRS Analysis of S. 3036. CRS-11 Table 6. Estimated Allowance Values and Auction Revenues Under Boxer Amendment (million 2005$) Year 2012 2020 2030 2040 2050 5775 4924 3860 2796 1732 Allowance Price (2005$) $18.54 $28.30 $46.00 $74.60 $120.80 Agriculture and Forestry Program $4,550 $5,922 $7,546 $8,396 $7,268 $268 $348 $444 $466 $404 $1,071 $2,787 $5,327 $5,597 $4,845 $11,778 $15,328 $1,776 $0 $0 $11,306 $14,715 $1,705 $0 $0 $471 $613 $71 $0 $0 $0 Total Allowances (millions) New Technology Incubator Transition Assistance for Workers Transition Assistance for Carbon-Intensive Manufacturers Currently Operating Facilities New Entrant Facilities Petroleum Refiners (Discretionary) Transition Assistance for Fossil Fuel Electric Generators Rural Electric Cooperatives (Maximum) Pilot Program for MT and VA Transition Assistance for Petroleum Fuel Refiners $1,178 $1,533 $178 $0 $19,272 $20,902 $4,883 $0 $0 $964 $1,045 $244 $0 $0 $145 $157 $37 $0 $0 $2,141 $1,393 $1,776 $0 $0 $803 $1,045 $1,332 $0 $0 $3,747 $8,361 $21,307 $27,986 $24,226 $10,172 $13,587 $17,756 $18,657 $16,151 $3,480 $4,529 $6,215 $6,530 $5,653 $3,212 $4,529 $6,215 $7,463 $6,460 Transportation Sector $1,071 $2,787 $4,883 $5,131 $4,442 Efficiency and Conservation Block Grant Program $2,141 $2,787 $3,551 $3,731 $3,230 States that Have Led in Reducing Emissions $4,283 $6,967 $14,205 $18,657 $16,151 $3,212 $4,529 $6,215 $7,463 $6,460 Transition Assistance for Natural Gas Processors Federal Program for Consumers Partnerships with State Governments Electricity LDCs Natural Gas LDCs Assistance to States with Manuf. and Coal Partnerships with States, Tribes, and Localities Partnerships with States and Tribes to Adapt to Climate Change Coastal States $1,285 $1,812 $2,486 $2,985 $2,584 Freshwater and Agriculture $803 $1,132 $1,554 $1,866 $1,615 Alaska $642 $906 $1,243 $1,493 $1,292 Indian Tribes $482 $679 $932 $1,119 $969 $2,141 $5,353 $2,787 $1,393 $7,102 $0 $7,463 $0 $6,460 $0 Efficient Buildings $803 $1,045 $1,332 $1,399 $1,211 Efficient Equipment and Appliances (SEAD Program) $803 $1,045 $1,332 $1,399 $1,211 Efficient Manufacturing $803 $1,045 $1,332 $1,399 $1,211 Renewable Energy $4,283 $5,574 $7,102 $1,866 $1,615 Low- and Zero-Carbon Electricity Technology $1,874 $2,439 $3,551 $1,866 $1,615 $268 $348 $444 $466 $404 Carbon Capture and Sequestration (CCS) Technolgy Fund $1,071 $1,393 $0 $0 $0 CCS Bonus Allowances $3,212 $4,180 $7,102 $1,866 $1,615 Partnerships with States, Tribles, and Localities - Wildlife Early Action Program Advanced Research (ARPA-E) Clean Medium- and Heavy-Duty Hybrid Fleets Advanced Vehicle Manufacturers $535 $0 $0 $0 $0 $1,071 $1,393 $1,776 $1,866 $1,615 Cellulosic Biofuel $1,071 $1,393 $1,776 $0 $0 Federal Program on Firefighting and Wildlife Adaptation International Forestry $3,212 $1,071 $3,484 $1,393 $7,102 $1,776 $9,329 $1,866 $8,075 $1,615 $535 $0 $0 $0 $0 International Adaptation $1,071 $2,787 $7,102 $13,060 $11,306 Deficit Reduction Fund $6,156 $11,148 $24,415 $31,251 $27,053 $803 $1,045 $1,776 $1,866 $1,615 International Technology Deployment Climate Security Act Administrative Fund Source: CRS Analysis of proposed Boxer Amendment