GHG Emission Limits Proposals from the 110th Congress

H. Con. Res. 96: Concurrent Resolution expressing the sense of the Congress that there should be enacted a mandatory national program to slow, stop and reverse emissions of greenhouse gases. Sponsor: Rep. Norman Dicks (21 cosponsors)

H. Con. Res. 96: Concurrent Resolution expressing the sense of the Congress that there should be enacted a mandatory national program to slow, stop and reverse emissions of greenhouse gases. Sponsor: Rep. Norman Dicks (21 cosponsors)

H.R. 620: Climate Stewardship Act. The Act establishes a market-driven system of tradable greenhouse gas (GHG) allowances, administered by the Environmental Protection Agency, to begin in 2012. Allowances would be equal to 6.13 million metric tons of CO2e after 2011, reducing to 5.239 million metric tons after 2019, 4.1 million after 2029, and 2.096 after 2049. The bill would also establish a national greenhouse gas database and registry, as well as a Climate Change Credit Corporation, a non-profit corporation with a board appointed by the President of the United States. This corporation would be allocated a portion of tradable allowances, and be able to buy and sell other allowances, and is directed to use the proceeds from its trading activities to reduce costs borne by consumers as a result of the GHG reduction requirements of the Act. Sponsor: Rep. John Olver (D-MA) (17 cosponsors)

H.R. 823: A bill to authorize Federal agencies and legislative branch offices to purchase greenhouse gas offsets and renewable energy credits.
Sponsor: Rep. Peter Welch (D-VT) (14 cosponsors).

H.R. 2635: Carbon-Neutral Government Act of 2007. This title, among other provisions, directs each federal agency to annually inventory and report its GHG emissions. Not later than 18 months after enactment, the EPA must promulgate annual GHG reduction targets for the total emissions of all agencies taken as a whole, for each fiscal year from 2010 through 2050. The title also sets GHG emissions standards for federal vehicle fleets, based on the California Code of Regulations. In addition, the bill requires the Secretary of Energy to establish new efficiency standards for federal buildings, so that by 2030 they have achieved a 100% reduction in fossil-fuel generated energy consumption compared to consumption in 2003. Sponsor: Rep. Henry Waxman (D-CA) (14 cosponsors) Action: 8/3/07: Reported by Committee on Oversight and Government by voice vote. 8/4/07: Incorporated into H.R. 3221, which passed the House by 241-172.

H.R. 2643: Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008. Among other provisions, the bill declares that “it is the sense of the Congress that there should be enacted a comprehensive and effective national program of mandatory, market-based limits and incentives on emissions of greenhouse gases.” The bill appropriates $266 million for basic research on climate change to the Department of the Interior (through the USGS), the EPA, and the U.S. Forest Service. It also appropriates $50 million to establish a commission on climate change adaptation and mitigation. In addition, the bill appropriates $2 million to develop regulations to reduce GHG emissions, pursuant to the Supreme Court’s ruling in Massachusetts v. EPA. Sponsor: Rep. Norman Dicks (D-WA). Action: 6/11/07: Reported by the Committee on Appropriations by voice vote. 6/26/07: The language calling for limits on greenhouse gas emissions was subjected to a stripping amendment by Rep. Joe Barton (R-TX), which was rejected by 153-274; the provision was preserved. 6/27/07: Passed the House by a vote of 272-155.

S. 6: National Energy and Environmental Security Act. This non-binding resolution expresses the sense of Congress that Congress should enact, and the President should sign, legislation to enhance the security of the United States by reducing the dependence of the United States on foreign and unsustainable energy sources and the risks of global warming by--(1) requiring reductions in emissions of greenhouse gases; (2) diversifying and expanding the use of secure, efficient, and environmentally-friendly energy supplies and technologies; (3) reducing the burdens on consumers of rising energy prices; (4) eliminating tax giveaways to large energy companies; and (5) preventing energy price gouging, profiteering, and market manipulation. Sponsor: Sen. Harry Reid (D-NV) (13 cosponsors)

S. 280: Climate Stewardship and Innovation Act of 2007. The Act establishes a market-driven system of tradable greenhouse gas (GHG) allowances, administered by the Environmental Protection Agency, to begin in 2012. The Act would divide the economy into sectors—electricity, transportation, industry, and commercial—each subject to separate, sector-wide emissions cap, while allowing inter-sector trading. Allowances would be equal to a maximum of 6.13 million metric tons of CO2e after 2011, reducing to 5.239 million metric tons after 2019, 4.1 million after 2029, and 2.096 after 2049; the quantities of these allowances could be reduced, depending on the GHG emissions of the rest of the economy and emitters not subject to the cap. The bill would also establish a national GHG database and registry, as well as a Climate Change Credit Corporation, a non-profit corporation with a board appointed by the President of the United States. This corporation would be allocated a portion of tradable allowances, and be able to buy and sell other allowances, and is directed to use the proceeds from its trading activities to reduce costs borne by consumers as a result of the GHG reduction requirements of the Act. The Act also contains provisions to encourage the innovation and deployment of advanced, climate-friendly technologies; it also directs the Secretary of Commerce to conduct research on the impact of climate change on low-income populations around the world, and the costs of mitigating those impacts. Sponsor: Sen. Joseph I. Lieberman (I-CT) (9 cosponsors)

S. 309: Global Warming Pollution Reduction Act. The Act, through an amendment to the Clean Air Act, requires the United states to reduce its greenhouse gas (GHG) emissions to 80% of 1990 levels by the year 2050, in the following stages: 1/3 of 80% of 1990 levels by 2030; 2/3 of 80% of 1990 levels by 2040; and fully 80% of 1990 levels by 2050. The Act gives the Administrator of the Environmental Protection Agency the discretion to propose GHG reductions, and provides a menu of policy options, including market-based measures—such as emissions trading—among others, to achieve those reductions. The bill also requires the Administrator to mandate that, not later than January 1, 2010, each fleet of highway vehicles over 10,000 pounds sold by a manufacturer in the United States must, beginning in model year 2020, meet the following GHG tailpipe emissions standards: not more than 850 CO2e grams per mile (gpm) for highway vehicles with a gross vehicle weight (GVW) rating between 10,001 and 26,000 pounds; and not more than 1,050 CO2e gpm for such vehicles with a GVW rating of more than 26,000 pounds. The bill gives the Administrator the discretion to increase the stringency of these administrators after model year 2020. Among other provisions, the bill also contains GHG emission standards for electric generation units and energy efficiency and promotes research into carbon capture and sequestration. Sponsor: Sen. Bernard Sanders (I-VT) (11 cosponsors)

S. 317: Electric Utility Cap and Trade Act of 2007. The Act creates a greenhouse gas (GHG) cap-and-trade system for electric generating facilities of 25 megawatt capacity or larger. Beginning in 2011, the Act would limit total GHG emissions by these facilities to their total emissions in 2006; to 2001 levels in 2015; in each year from 2016 to 2019, by an additional 1% reduction based on the emissions reduction of the previous year; and in each year from 2020 onwards, by an additional 1.5% reduction based on the emissions reduction of the previous year. Emissions credits would be distributed through a mix of auction and allocation, with proceeds from auctions going into a Climate Action Trust Fund. Monies from the Trust Fund would be used to fund research and development for climate-friendly technologies, and adaptation assistance for workers and communities, among other purposes. Sponsor: Sen. Dianne Feinstein (D-CA) (1 cosponsor)

S. 485: Global Warming Reduction Act of 2007. The Act would “establish an economy-wide global warming pollution emission cap-and-trade program,” among other provisions. The bill declares that it shall be a goal of the United States to work with other greenhouse gas (GHG)-emitting countries to limit average global concentrations of GHGs at 450 parts per million, and to reduce emissions to 65% of year 2000 levels by 2050. The bill requires the United States to reduce emissions to 1990 levels by 2020; by at least an additional 2.5 percent below each preceding year between 2021 and 2030; and by at least an additional 3.5 percent each preceding year between 2031 and 2050. The bill directs the Administrator of the Environmental Protection Agency to design the cap-and-trade system, and gives the Administrator discretion over the scope of the system, including which sectors would be subject to the cap. The bill also directs the President, in conjunction with the Administrator and other Federal agencies, to submit to Congress a plan for how the tradable allowances should be distributed. In addition, the bill directs the Administrator to establish GHG emissions standards for passenger vehicles which will meet or exceed the standards adopted by the California Air Resources Board in September 2004. The bill also contains provisions concerning research and development, energy efficiency standards, the renewable portfolio standard, and carbon capture and sequestration, among others. Sponsor: Sen. John F. Kerry (D-MA) (2 cosponsors)

S. 1059: Zero-Emissions Building Act of 2007. The Act amends the Energy Conservation and Production Act by inserting language that requires and specifies reductions in GHG emissions in Federal buildings. Sponsor: Sen. Hillary Rodham Clinton (D-NY) (1 cosponsor)

S. 1168: Clean Air/Climate Change Act of 2007. This bill amends the Clean Air Act to establish a regulatory program for pollutants and greenhouse gas (GHG) emissions from the electric generating sector. Among other provisions, it requires each electric generating unit constructed or modified after January 1, 2105, to meet a performance standard of 1,100 pounds of CO₂/mWh or less. The bill also sets declining annual tonnage limits for CO₂, SO₂, and nitrogen oxide emissions from units within the 48 contiguous States, and requires the Administrator of the EPA to establish CO₂ and nitrogen oxide allowance trading programs for generating units. In addition, the bill authorizes the Administrator to award offset allowances for certain offset projects, and provides guidelines for awarding such offsets. Sponsor: Sen. Lamar Alexander (R-TN) (1 cosponsor)

S. 1177: Clean Air Planning Act of 2007. Among other provisions, this bill promulgates declining annual national pollutant tonnage limitations for CO₂ emissions, SO₂, nitrogen oxides, mercury, and emissions from the electric generating sector. It also establishes allowance trading programs for these pollutants. In addition, it establishes a Climate Action Trust Fund, to be funded by revenues from auctions of allowances from the separate trading programs, and to be used for clean and low-carbon energy technology research and development, adaptation assistance for workers and communities negatively affected by climate change and greenhouse gas regulation, and wildlife and habitat conservation and adaptation. Sponsor: Sen. Thomas Carper (D-DE) (7 cosponsors)

S. 1201: Clean Power Act of 2007. Among other provisions, this bill would amend the Clean Air Act to reduce emissions from electric power plants, by requiring caps on greenhouse gas (GHG) emissions if the President has not signed legislation affecting at least 85% of GHG emissions and on an economy-wide basis by December 31, 2012. The bill also directs the Administrator to establish an emissions allowance permitting and trading system. In addition it imposes a low-carbon generation requirement on certain fossil fuel-burning power plants. Sponsor: Sen. Bernard Sanders (I-VT) (3 cosponsors)

S. 1227: Clean Coal Act of 2007. Among other provisions, this bill would require that each coal-fired electric generating unit that commences construction on or after April 26, 2007 shall meet a performance standard of not more than 285 pounds of carbon dioxide emitted pre megawatt-hour. Carbon dioxide that a facility geologically sequesters would not be counted as emitted. Sponsor: Sen. John Kerry (D-MA)

S.1766: Low Carbon Economy Act of 2007. This bill is intended to reduce greenhouse gas (GHG) emissions from the production and use of energy. It would establish a cap-and-trade system for GHG emissions, beginning in 2012. The bill’s goal is to reduce United States GHG emissions to 2006 levels by 2020 and to 1990 levels by 2030. Facilities subject to the cap are petroleum refineries, natural gas processing plants and liquefied natural gas (LNG) facilities, importers of liquid fossil fuels, importers and manufacturers of non-carbon dioxide GHGs, large coal-consuming facilities, and manufacturers of adipic or nitric acid, aluminum smelters. The bill establishes a technology accelerator payment (TAP), which regulated entities can pay in lieu of submitting an emission allowance; the initial price of the TAP is $12/metric ton of carbon dioxide (CO₂)equivalent in 2012, increasing at a rate of 5% above the rate of inflation per year. Funds received under the TAP mechanism will be used to fund technology development and deployment. Emission allowances will be allocated to industry sectors: 12% to coal mines; 7% to petroleum refineries; 4% to natural gas processing facilities; 54% to electricity generating facilities; 4% to nonfuel regulated activities; and 19% to carbon-intensive manufacturing facilities. 9% of allowances will be allocated to states, and allowances will also be allocated for agricultural projects and for early reductions according to rules yet to be established. The bill creates bonus allowances for carbon capture and sequestration, starting at an allowance-to-ton of sequestered CO₂ of 3.5/1 in 2012, and declining to .5/1 in 2039. The bill specifies that 24% of all allowances to be auctioned at the start of the program, increasing to 53% by 2030. Auction proceeds will be used to fund the Energy Technology Deployment Fund, for research, development, and deployment of low-carbon technologies, as well as international technology deployment. Auction funds will also be deposited in a Climate Adaptation Fund to mitigate the effects of climate change; and the Energy Assistance Fund, to be used to ease the financial impact of higher energy costs. Sponsor: Sen. Jeff Bingaman (D-NM) (6 cosponsors)

S.1874: Containing and Managing Climate Change Costs Efficiently Act. This bill would establish a Carbon Market Efficiency Board, supervised by the Department of Treasury, to promote the achievement of the environmental objectives of the United States, including any national mandatory greenhouse gas (GHG) emissions cap and reduction targets.

The bill gives the Board the power to, in the first two years of GHG allowance trading program, increase the amount of allowance that covered entities may borrow, but only in the event that the average daily closing price of an emissions allowance exceeds the upper range predicted by the Congressional Budget Office prior to the start of the program. In subsequent years, the Board will have the power to: (1) temporarily increase the amount that covered entities can borrow, lengthen the payback period of loans, and/or lower the interest rate on loans; and, in the event of more extreme economic circumstances, (2) to temporarily expand the total number of allowances in the economy, provided that subsequent years’ caps are tightened sufficiently to ensure that cumulative emissions reductions over the long term remain unchanged. The Board is only to use these powers as needed to avoid significant harm to the economy. Sponsor: Sen. Mary Landrieu (D-LA) (3 cosponsors) This bill is intended to serve as a cost containment amendment for any GHG cap-and-trade bill brought to the full Senate

S. 2191: The Lieberman-Warner Climate Security Act (L-W CSA). This bill would establish a cap-and-trade program within the United States requiring a 70% reduction in greenhouse gas (GHG) emissions from covered sources, which represent over 80% of total U.S. emissions. The bill as amended also includes complementary policies, such as a low carbon fuel standard and provisions aimed at enhancing energy efficiency. Taken together, the bill’s sponsors believe these provisions will reduce overall U.S. GHG emissions roughly 63% by 2050.

The L-W CSA divides the six GHGs into two categories: Group I (carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, and perfluorocarbons) and Group II (hydrofluorcarbons). For all GHGs, the bill uses the common unit of measurement CO₂ equivalent (CO₂e)—the quantity of GHGs that the U.S. EPA has determined makes the same contribution to global warming as one metric ton of CO₂. The L-W CSA would create two separate caps, one covering facilities that produce HFCs and the other covering facilities that:

• Use more that 5,000 tons of coal annually;
• Process, produce, or import natural gas;
• Produce or import petroleum or coal-based fuel that when combusted will emit a Group I GHG;
• Produce for sale or distribution or import more than 10,000 CO₂e of chemicals that are group I GHGs, assuming no capture or permanent sequestration
• Emit as a by-product of HCFC production more than 10,000 CO₂e of HFCs

Overall, the two caps combined are expected to cover over 80% of total U.S. GHG emissions, although some process related emissions are not covered.

The cap on facilities producing HFCs would start in 2010 at 300 million metric tons of carbon dioxide equivalent (MMTCO₂e) and decline to 90 MMTCO₂e by 2037, remaining at that level through 2050. Emissions from all other covered facilities would be capped at 5775 MMTCO₂e in 2012, with this cap decreasing annually to 1732 MMTCO₂e in 2050. The two caps combined would result in roughly a 19% reduction from 2005 levels in 2020 and a 70% reduction from 2005 levels by 2050.  

Beginning in 2012 and continuing through 2030, the L-W CSA would provide transition assistance in the form of free allowances to electric power generators (19%), manufacturers (10%), fuel producers or importers (2%), HFC producers and importers (2%), and rural electric cooperatives (1%). In addition, 5% of the total emission allowance account will be allocated to early actors from 2012-2017 and 4% for carbon, capture and sequestration activities from 2012-2030. Approximately 30.5% of the total allowance account will be set aside from 2012-2050 for other entities, including states, load-serving entities, farms and forests, coal mines, and others.  Starting in 2012, 26.5% of allowances would be auctioned (including 5% for an early auction to be held shortly after enactment), with the proceeds going to energy technology deployment, low-and middle-income energy consumers, adaptation efforts in the U.S., and programs to support energy independence and national security. Over time, the auction will grow so that by 2031, 69.5% of the allowances would be auctioned and the revenue used for these purposes.

The L-W CSA allows covered facilities to satisfy up to 15% of their compliance obligation with specific domestic offsets. An additional 15% can be covered using international emission allowances. Unlimited banking is allowed and owners and operators of covered facilities can borrow up to 15% of their annual compliance obligation from future years. The L-W CSA also creates a Carbon Market Efficiency Board to monitor the carbon trading market and implement specific cost relief measures, including increased borrowing and use of offsets.

The L-W CSA includes a review of the commitments of other major-emitting nations to reduce their GHG emissions. Eight years after enactment the President is authorized to require importers of GHG emission-intensive products from countries that have not taken action comparable to the U.S. to submit credits equal to those required of domestic manufactures. Sponsor: Sen. Joseph I. Lieberman (I-CT) (9 cosponsors). Action: 11/1/07: Reported by the Private Sector and Consumer Solutions to Global Warming and Wildlife Protection Subcommittee of the Senate Environment and Public Works Committee by a vote of 4-3. 12/5/07: Reported by the Senate Environment and Public Works Committee by a vote of 11-8.

See also: H. Con. Res. 104, H.R. 1186, S. 1073