Proposed Bills on: GHG Emission Reporting

S. 1411:   Federal Government Greenhouse Gas Registry Act of 2007. This bill would amend the Clean Air Act to establish a Federal Emissions Inventory Office within the EPA. The bill directs this office to measure and verify greenhouse gas (GHG) emissions from: sources owned or controlled by the federal government (such as a motor vehicle fleet); production of electricity purchased and used by the federal government; or the conduct of a project or activity (including outsourced projects or activities) by the federal government, such as employee travel or the use of an energy-intensive material, such as paper. Sponsor: Sen. Frank Lautenberg (2 Cosponsors)

 

S. 1696:   Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008. Among other provisions, this bill appropriates $10 million to the EPA for the purpose of providing competitive grants for research into, among other purposes, developing strategies to mitigate climate change. In addition, the bill states the sense of the Senate Appropriations Committee that “a robust climate change management research program will be essential for the Forest Service to sustain forest health and biodiversity and protect a wide range of natural resources,” and appropriates $2.5 million to expand the Forest Service’s climate science research program; the Committee directs the agency to use these funds to develop forest management techniques that adapt to and mitigate the effects of climate change. The bill also appropriates $2.275 to the EPA to fund research activities in support of future rulemaking activities on greenhouse gas (GHG) regulation. It also appropriates $2 million to the EPA to use its existing authority under the Clean Air Act to develop and publish a rule requiring mandatory reporting of GHG emissions above appropriate thresholds in all sectors of the economy; the bill further directs the EPA to publish a final rule no later than December 31, 2008, and to include in its rule reporting of emissions resulting from upstream production and downstream sources. Sponsor: Sen. Dianne Feinstein (D-CA) ( Cosponsors)

 

S. 183:   Improved Passenger Automobile Fuel Economy Act. Among other provisions, the Act directs the Secretary of Commerce to establish a national registry system for greenhouse gas emissions reduction credits, and includes regulatory language for trading of said credits. Sponsor: Sen. Ted Stevens (R-AK) (1 Cosponsors)

 

S. 2191:  

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.

Sponsor: Sen. Joseph I. Lieberman (I-CT) (9 Cosponsors)

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.

 

 

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. 3036:  

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.

 

Sponsor: Sen. Barbara Boxer (D-CA) ( Cosponsors) 6/2/08: Cloture on the motion to proceed to the bill invoked by the Senate by 74-14; 6/6/08: the Senate failed to invoke cloture to close debate on the bill by 48-36.

 

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)

 

H.R. 2651:   Greenhouse Gas Accountability Act of 2007. This bill directs the Administrator of the Environmental Protection Agency to establish a greenhouse gas (GHG) reporting program. The act would require annual reports of emissions from firms that directly or indirectly emit over 10,000 metric tons of carbon dioxide equivalent (mt/CO₂e) at any one facility; firms whose total direct or indirect emissions exceed 100,000 mt/CO₂e; firms which produce or import fuels, chemicals, and other GHGs that when used or combusted will emit over 100,000 mt/CO₂e. In addition, the bill would require annual GHG emission reports from any public company with annual revenues exceeding $10 million; as well as any firm with annual revenues exceeding $10 million in the following industries: automobile and auto parts; aerospace and defense; chemicals; construction materials; electric utilities; energy equipment and services; oil, gas, and consumable fuels; metals and mining; paper and forest products; and transportation. Sponsor: Rep. Eliot Engel (D-NY) ( Cosponsors)

 

H.R. 3236:   Energy Efficiency Improvement Act of 2007. This bill intends to encourage greater energy efficiency throughout the U.S. economy. Among other provisions, the bill requires the Administrator of the EPA to establish a Recoverable Waste-Energy Inventory Program, including a Registry of Waste-energy Sources, and to include in the Registry the greenhouse gas (GHG) emissions savings that might be achieved with recovery of the waste energy from all sources and sites listed therein. The bill also, in renaming the Department of Energy’s Regional Combined Heat and Power (CHP) Application Centers, as Clean Energy Centers, finds that the CHP centers have produced significant climate change benefits and will continue to do so. Sponsor: Rep. Rick Boucher (D-VA) (1 Cosponsors)

 

H.R. 3240:   To enhance availability of critical energy information. This bill directs the Administrator of the Energy Information Administration to establish a 5-year plan to enhance the quality and scope of the data it collects. In its findings section, the bill cites the importance of State energy information to policymakers as the consider and implement policies to cut greenhouse gases. Sponsor: Rep. Rick Boucher (D-VA) (1 Cosponsors)

 

H.R. 6186:  

Investing in Climate Action and Protection (iCAP) Act. This bill would amend the Clean Air Act to establish a cap-and-trade system for greenhouse gas (GHG) emissions, and for other purposes.

 The bill would regulate carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), sulfur hexaflouride (SF₆), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs). The bill would also regulate nitrogen trifluoride (NF₃), which is a GHG not covered by the Kyoto Protocol, and, in addition, would regulate any other anthropogenic gas the Administrator of the EPA determines to have a global warming potential equal to or greater than carbon dioxide. According to the bill’s authors, the legislation would cover 94% of U.S. GHG emissions—87% through cap-and-trade.

 The cap-and-trade program would reduce covered emissions to 2005 levels by 2012, to 20% below 2005 levels by 2020, and to 85% below 2005 levels by 2050.The cap-and-trade program would cover emissions from: fossil fuel-fired power plants that emit more than 10,000 carbon dioxide equivalents (CO₂e) a year; industrial facilities that emit more than 10,000 CO₂e a year; producers or importers of petroleum or coal-based fuels, the combustion of which will produce more than 10,000 CO₂e a year; natural gas local distribution companies (LDCs) who deliver natural gas that will produce more than 10,000 CO₂e  a year when combusted; producers or importers of more than 10,000 CO₂e a year of HFCs, PFCs, SF₆, or NF₃, or any other fluorinated gas that is designated by the Administrator as a GHG; and “commercial-scale” geological carbon sequestration sites to cover any leakage.

In addition to the cap-and-trade program, the act will cover an additional 7% of U.S. GHG emissions through financial incentives to farmers and forest managers to reduce GHG emissions and increase storage as well as performance standards for coal mines, landfills, wastewater treatment operations, and large animal feeding operations that emit more than 10,000 CO₂e a year. The bill would direct the Administrator to publish and subject to regular review a list of such sources not later than 90 days after enactment, and establish the relevant performance standards not later than 2 years after that.

The bill would also set mandatory performance standards for coal-fired power plants with a generating capacity of 25 megawatts or more, and which derive more than 50% of annual fuel input from coal or petroleum coke. Plants which commence construction on or after January 1, 2009, would be required to capture and sequester 85% of their CO2 emissions. Plants which commence operation before January 1, 2020, would have to be in compliance with the performance standard by either January 1, 2016, or four years after they commence operation, whichever is later.  

The bill would auction 94% of all allowances in 2012, transitioning to a 100% auction in 2020.

Allowance auctions would begin in 2010. The bill would establish a number of funds in the U.S. Treasury, and deposit in them the following percentages of revenues from allowance auctions from 2010-2019. Dollar amounts listed in the following table are the bill’s author’s estimates. 

 

Fund	2010-2019		2020-2050		2012-2050
	% of allowance value	Est. annual funding ($ billions)	% of allowance value	Est. annual funding ($ billions)	Est. cumulative funding ($ billions)
General Fund of the Treasury	51	110	48	110	4,290
Climate Trust Rebate Fund	7.5		7
Low-Carbon Technology Fund	12.5	24	12.5	25	963
National Energy Efficiency Fund	12.5	24	12.5	25	963
Agriculture and Forestry Carbon Fund	4.5	8	5	10	378
Climate Change Worker Transition Fund	1.5	3	2	4	147
National Climate Change Adaptation Fund	2	7	2.5	9	332
Natural Resource Conservation Fund	1.5		2
International Forest Protection Fund	1.5	3	2	4	147
International Clean Technology Fund	3.5	7	4	8	301
International Climate Change Adaptation Fund	2	4	2.5	5	185

 

 

Funds from the General Fund of the Treasury and the Climate Trust Rebate Fund would be used for refundable tax credits and rebates to compensate consumers for higher energy prices resulting from the bill. Cash rebates would be directed at low-income households and will be distributed through the Electronic Benefits Transfer system used for food stamps. All households earning under $110,000 would be eligible for some benefit, with benefit levels phasing out gradually for households earning $70,000 to $110,000.

In addition to auctions, 6% of allowances would be allocated to energy-intensive, trade-exposed industries each year from 2012-2019.

Entities would be able to fully bank allowances. Entities would also be able to borrow allowances from future years, and would be required to pay back borrowed allowances within 5 years, at an interest rate of 10% per year.

Entities would be able to meet up to 15% of their compliance obligation with EPA-approved domestic offsets, and an additional 15% of their compliance obligation with EPA-approved international emission allowances or offsets. Eligible domestic offset projects would be limited to: agricultural projects that reduce GHGs resulting from enteric fermentation or manure management in soils, or that increase biological sequestration of carbon through afforestation or reforestation; projects which reduce fugitive GHGs from petroleum and natural gas systems in the US; and projects that reduce GHG emissions from coal mines (agricultural and coal mine projects are only eligible if they are not subject to the performance standards discussed above). The bill would direct the Administrator to promulgate regulations for eligible international offset projects; forestry or land use projects, and projects involving the destruction of HFCs, would not be eligible.

The bill would establish an Office of Carbon Market Oversight (OCMO) within the Federal Energy Regulatory Commission. The OCMO would have the authority to oversee the carbon market to prevent fraud and market manipulation. 

The bill would establish a system of international reserve allowances to begin in 2020. If the President determines that a given country has not taken “comparable” action to reduce its GHG emissions, the President would be authorized to require importers of energy-intensive, trade-exposed primary goods from those countries to purchase and submit special international reserve allowances. These allowances would not be able to be used for compliance in the regular cap-and-trade system, and proceeds from the sale of these allowances would be used to supplement the International Clean Technology Fund established by the bill.

The bill contains a provision that would permit California to regulate GHG emissions from the tailpipes of automobiles, as well as other states which have adopted the same standards.

The bill would also amend the Clean Air Act to establish a low-carbon fuel standard. The Administrator would be directed to no later than 2010, establish a methodology for determining the lifecycle GHG emissions per unit energy of all transportation fuels for which such a determination does not already exist. The EPA would establish a fuel emission baseline, and would require transportation fuel providers to reduce, on an annual average basis, the average lifecycle GHG emissions of those fuels, resulting in a reduction of at least 10% from the baseline by 2028.  The performance standard used to determine the baseline would be revised in 2033 and every 5 years thereafter. The EPA would set up a market for credits, through which producers who achieve greater lifecycle emission reductions than the baseline would be able to earn credits to trade or sell to other producers, or bank for future use.

In addition, the bill would require the EPA to develop comprehensive regulatory standards for the underground injection of CO₂, and would requires the DOE to develop model building efficiency codes that states would be required to adopt and enforce in order to become eligible for funding from the National Energy Efficiency Fund that would be established by the bill.  

Sponsor: Rep. Edward J. Markey (D-MA) ( Cosponsors)