· Among other provisions, the bill establishes a renewable fuel standard, to reach 36 billion gallons by 2022, with 21 billion of those gallons to be from advanced biofuels. The bill mandates that renewable fuels produced from facilities that commence operations after enactment shall achieve at least 20% reduction in life cycle greenhouse gas (GHG) emissions, compared to gasoline. The bill also directs the Presidnet to establish criteria for a system of voluntary labeling of renewable fuels based on life cycle greenhouse gas emissions.
· The bill directs the President to establish a program to provide grants for research support to facilitate the development of sustainable markets and technologies to use woody biomass and other low carbon fuels, including research into methods of assessing and certifying the impacts of low-carbon fuels with respect to reductions in lifecycle GHG emissions, among other impacts.
· The bill also directs the Secretary of Energy to establish a grant program to encourage the production of advanced biofuels. It requires the Secretary to award grants to the proposals for advanced biofuels with the greatest reduction in lifecycle GHG emissions compared to the comparable vehicle fuel lifecycle emissions in calendar year 2007, with at least a 50% such reduction needed to be eligible.
· The bill amends the Clean Air Act to direct the Administrator of the EPA to work with the EPA to conduct 2 studies on the effects of increased domestic use of renewable fuels under this act, including an assessment and quantification of significant changes in GHG emissions, among others.
· Among other provisions, the bill directs the Secretary of Energy to conduct an applied research program for plug-in electric drive vehicle technology, including development of control systems optimized for reducing greenhouse gas emissions; it also directs the Secretary to establish a competitive program to provide grants for demonstrations of plug-in hybrid electric vehicles. As part of the criteria, applicants are required to record GHG emissions.
· The bill also amends the Energy Policy Act of 2005 to establish an Energy Efficiency and Renewable Energy Worker Training. It directs the Secretary of Energy to establish a competitive grant program for States to administer renewable energy and energy efficiency workforce development programs, and requires the Secretary to give priority to those States whose programs will be in line with meeting national and State goals for reducing GHG emissions, among other goals.
· The bill requires the Secretary of the Interior to develop a national assessment of the quantity of carbon stored in and released from terrestrial ecosystems, including from human-caused and natural fires, and the annual flux of GHGs in and out of terrestrial ecosystems. As part of the assessment, the Secretary must determine the processes that control the flux of GHGs in and out of terrestrial ecosystems; estimate the potential for increasing carbon sequestration in natural and managed terrestrial ecosystems; develop near-term and long-term adaptation strategies or mitigation strategies that can be employed to enhance the sequestration of carbon in terrestrial ecosystems, to reduce emissions of GHGs, and to adapt to climate change.
· The bill also requires the Secretary of the Interior to develop a method for measuring, monitoring, quantifying, and monetizing covered GHG emissions and reductions, including methods for allocating and managing offsets or credits.
· The bill directs the Secretary of Transportation to increase Corporate Average Fuel Economy regulations to achieve a combined standard for passenger cars and light trucks of at least 35 miles per gallon by 2020. For model years 2021 through 2031, the Secretary would have to establish the "maximum feasible" standard for the fleet. In establishing the maximum feasible standard, the bill directs the Secretary to consider the emissions of GHGs over the lifecycle of the fuel and the resulting costs to human health, the economy, and the environment.
· The bill amends the Energy Policy Act of 2005 to establish a program to promote and fund carbon capture and storage research, development, and demonstration. It authorizes a total of $1.425 billion for various of activities related to carbon capture and storage, including: fundamental science and engineering research; field testing of carbon dioxide sequestration in operating and depleted oil and gas fields, and geological formations including saline formations and unmineable coal seams; not less than 7 large-volume sequestration tests involving at least 1 million tons of carbon dioxide per year in a diversity of geological formations across the United States; and an assessment of the national capacity for carbon dioxide storage. The bill also directs the Secretary of Energy to establish a competitive grant program for the demonstration of carbon capture and storage from industrial sources.
· The bill also requires the Administrator of the EPA to establish a competitive grant demonstration program for projects to capture and store or use the carbon dioxide emitted from the Capitol power plant as a result of burning coal.
· In addition, the bill requires the Secretary of the Interior to develop a national assessment of the quantity of carbon stored in and released from terrestrial ecosystems, including from human-caused and natural fires, and the annual flux of GHGs in and out of terrestrial ecosystems. As part of the assessment, the Secretary must determine the processes that control the flux of GHGs in and out of terrestrial ecosystems; estimate the potential for increasing carbon sequestration in natural and managed terrestrial ecosystems; develop near-term and long-term adaptation strategies or mitigation strategies that can be employed to enhance the sequestration of carbon in terrestrial ecosystems, to reduce emissions of GHGs, and to adapt to climate change.
· The bill also requires the Secretary of Commerce to establish within NOAA a program of scientific research on abrupt climate change, and authorizes up to $10 million between 2009 and 2014.
· Finally, the bill expresses the sense of Congress that “[d]evelopment of renewable energy through sustainable practices will help lead to a reduction in greenhouse gas emissions and enhance international development.
Biodiesel Promotion and Quality Assurance Act of 2007. This bill would amend the Clean Air Act to direct the Administrator of the EPA to establish a biodiesel standard of 450 million gallons in 2008, and increasing to 1.250 billion gallons in 2012. After 2012, the volume of the standard would be determined by the Administrator. The bill would also require the Administrator to promulgate regulations to ensure that only high-quality biodiesel is introduced into commerce. In its findings section, the bill states that a strong biodiesel industry will provide greenhouse gas reduction benefits.
NOTE: For a full range of Pew Center resources for Lieberman-Warner, including in depth analysis, a longer summary, a complete timeline, and links to relevant external documents and media, please click here
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.
11/1/07: Reported by the Senate Committee on Environment and Public Works Subcommittee on Private Sector and Consumer Solutions to Global Warming by 4-3; 12/5/08: Reported by the Senate Committee on Environment and Public Works by 11-8.
The Lieberman-Warner Climate Security Act of 2008
NOTE: For a full range of Pew Center resources for this bill, including in depth analysis, a longer summary, a complete timeline, and links to relevant external documents and media, please click here
· The Act, if enacted into law, would establish a market-based cap-and-trade program for greenhouse gas (GHG) emissions in the United States, and establish other measures to reduce GHG emissions.
· This is the first cap-and-trade legislation to proceed to the Senate floor through regular order—that is, through the committee process. A previous version of this bill, then titled S.2191, was passed 11-8 by the Senate Environment and Public Works (EPW) Committee in December 2007. The version that will debated on the Senate floor has been extensively revised from the version passed by the EPW committee.
· An estimated 87% of U.S. GHG emissions would be subject to the bill’s cap-and-trade program. Those required to submit emissions allowances under the program include: coal-fired power plants and other entities that use more than 5,000 metric tons of coal, natural gas processors and importers, petroleum processors and refiners, manufacturers and importers of more than 10,000 metric tons of GHGs (as measured in CO2 equivalents), and any entity that emits more than 10,000 metric tons (CO2e) of HFCs as a byproduct of the manufacture of hydrochlorofluorocarbons (HCFCs). The bill establishes a separate cap-and-trade system for HFCs produced or imported (including those in products and equipment).
· The cap-and-trade program would reduce GHG emissions from covered sectors by 4% below 2005 levels by 2012; 19% below 2005 levels by 2020; and 71% below 2005 levels by 2050.
· The bill would allocate 75.5% of all allowances for free in 2012— including 18% to power plants, 11% to manufacturers, 2% to petroleum refiners, and 0.75% to natural gas processors (transitioning to zero in 2031); 12.75% to electricity and natural gas local distribution companies for the benefit of energy consumers, and 15% to states, etc. The proportion of allowances auctioned would increase from 24.5% in 2012 to 58.75% by 2032.
· The bill would establish numerous measures to contain the cost of the cap-and-trade program, including allowing the use of domestic and international offsets, and the banking and borrowing of allowances; establishing a Carbon Market Efficiency Board empowered with certain cost-relief powers; and establishing a “cost-containment auction” of a fixed quantity of allowances each year that will initially be offered only to those with compliance obligations and within a certain price range. The bill also establishes a working group that will create regulations designed to protect the market from fraud and manipulation.
· The bill would provide funds to compensate low-income energy consumers and assist in worker transition.
· The bill would provide funding and incentives for development and deployment of geological carbon capture and sequestration (CCS) technology, with a goal of constructing 5-10 commercial coal-burning electricity facilities using CCS.
· The bill would also provide funds for: renewable energy; increasing the energy efficiency of buildings, appliances, manufacturing; research into low-carbon electricity generation and advanced energy projects; increasing the use and manufacture of hybrid and advanced vehicles; and increasing the production of cellulosic biofuels. It also includes a low-carbon fuel standard.
· The bill would provide funds for the states for mass transit projects, and wildlife conservation and adaptation projects, among others.
· The bill has a number of international provisions, including a measure that would require importers of certain commodities from countries that do not have GHG control programs to submit special allowances, as well as funds for assisting vulnerable communities abroad, promoting international technology development, and conserving forests and wildlife in other countries.
Expressing the sense of the Senate regarding the need for the United States to participate in international climate change negotiations to protect the country’s economic and national security interests, establish mitigation commitments by all countries that are major GHG emitters, establish international mechanisms to minimize the cost of efforts by participating countries and achieve a significant long-term reduction in global GHG emissions.
Energy Savings Act of 2007. This bill contains various provisions to promote biofuels, energy efficiency, and carbon capture and storage. It establishes a renewable fuel standard of 8.5 billion gallons in 2008, increasing to 36 billion gallons by 2022, and directs the President to promulgate regulations to ensure that motor and heating fuels sold within the United States contain the applicable volume of renewable fuels. The bill requires that renewable fuels produced from facilities built after enactment shall achieve at least a 20% reduction in life-cycle greenhouse gas (GHG) emissions compared to gasoline. In addition, the bill directs the Secretary of Energy to provide grants for the electric vehicle demonstration program. Grant recipients must submit an annual report to the Secretary on data relating to vehicle, performance, lifecycle costs, and GHG emissions. The bill also directs the Secretary to carry out fundamental science and engineering research to develop new approaches to capture and store, recycle, or reuse carbon dioxide.
Federal Aviation Research and Development Reauthorization Act of 2007. Among other purposes, this bill would direct the Administrator of the Federal Aviation Administration to establish a research initiative, in coordination with NASA and the United States Climate Science Program, to assess the impact of aviation on the climate and, if warranted to evaluate approaches to mitigate that impact.