Table Summary of Cap-and-Trade Proposed Legislation (01-2008)

Bill

Scope of Coverage

2010-2019 Cap

2020-2029 Cap

2030-2050 Cap

Allocation

Offsets and Other Cost Controls

Early Action

Technology and Misc.

Lieberman-Warner
S. 2191 – 10/18/2007
Lieberman-Warner Climate Security Act of 2008
Version passed 11-8 by the Senate Environment & Public Works Committee on December 5, 2007

All 6 GHGs
Economy-wide, “hybrid” – upstream for transport fuels & natural gas; downstream for large coal users; separate cap for HFC consumption

2005 level in 2012

15% below 2005 level in 2020

70% below 2005 level in 2050

Increasing auction: 26.5% in 2012 (includes 5% early auction), rising to 69.5% from 2031- 2050
Some sector allocations are specified including: 19% to power plants and 10% to manufacturers (transitions to zero in 2031), 11% to states, 9% to load serving entities (LSEs), and others
5% set-aside for domestic agriculture and forestry

15% limit on use of domestic offsets
15% limit on use of international emission allowances
Borrowing up to 15% per company
Creates Carbon Market Efficiency Board to monitor the trading market and implement specific cost relief measures, including increased borrowing and use of offsets

5% of allowances for early action in 2012, phasing to zero in 2017

Bonus allocations for carbon capture and storage
Funds and incentives for technology, adaptation, & mitigating effects on poor
Cap-and-trade system performance and targets subject to 3-year NAS review

Bingaman-Specter
S. 1766 – 7/11/2007
Low Carbon Economy Act

All 6 GHGs
Economy-wide, “hybrid” – upstream for natural gas & petroleum; downstream for coal

2012 level in 2012

2006 level in 2020

1990 level in 2030
President may set long-term target =60% below 2006 level by 2050 contingent upon international effort

Increasing auction: 24% from 2012-2017, rising to 53% in 2030
Some sector allocations are specified including: 9% to states, 53% to industry declining 2%/year starting in 2017
5% set-aside of allowances for agricultural

Provides certain initial categories including bio sequestration and industrial offsets
President may implement use of international offsets subject to 10% limit
$12/ton CO2e “technology accelerator payment” (i.e., safety valve) starting in 2012 and increasing 5%/year above inflation
Allows banking

From 2012-2020, 1% of allowances allocated to those registering GHG reductions prior to enactment

Bonus allocation for carbon capture and storage
Funds and incentives for technology R&D
Target subject to 5-year review of new science and actions by other nations

McCain-Lieberman
S.280 – 1/12/2007
Climate Stewardship and Innovation Act

All 6 GHGs
Economy-wide, “hybrid” – upstream for transportation sector; downstream for electric utilities & large sources

2004 level in 2012

1990 level in 2020

20% below 1990 level in 2030
60% below 1990 level in 2050

Administrator determines allocation/auction split; considering consumer impact, competitiveness, etc.

30% limit on use of international credits and domestic reduction or sequestration offsets  
Borrowing for 5-year periods with interest

Credit for reductions before 2012
Early actors may use offsets to meet 40% of reductions

Funds and incentives for tech R&D, efficiency adaptation, mitigating effects on poor

Sanders-Boxer
S.309 – 1/16/2007
Global Warming Pollution Reduction Act

All 6 GHGs
Economy-wide, point of regulation not specified

2010 level in 2010
2%/year reduction from 2010-2020

1990 level in 2020

27% below 1990 level in 2030
53% below 1990 level in 2040
80% below 1990 level in 2050

Cap and trade permitted but not required. Allocation criteria include transition assistance and consumer impacts

Includes provision for offsets generated from biological sequestration
“Technology-indexed stop price” freezes cap if prices high relative to tech options

Program may recognize early reductions made under state or local laws

Standards for vehicles, power plants, efficiency, renewables, certain categories of bio sequestration

Kerry-Snowe
S.485 –  2/1/2007
Global Warming Reduction Act

All 6 GHGs
Economy-wide, point of regulation not specified

2010 level in 2010

1990 level in 2020
2.5%/year reduction from 2020-2029

3.5% year reduction from 2030-2050
62% below 1990 level in 2050

Determined by the President; requires unspecified amount of allowances to be auctioned

Includes provision for offsets generated from biological sequestration  

Goal to “recognize and reward early reductions”

Funds for tech. R&D, consumer impacts, adaptation
Standards for vehicles, efficiency, & renewables

Olver-Gilchrest
H.R. 620 – 1/22/2007
Climate Stewardship Act

All 6 GHGs
Economy-wide, “hybrid” – upstream for transportation sector; downstream for electric utilities & large sources

2004 level in 2012

1990 level in 2020

22% below 1990 level in 2030
70% below 1990 level in 2050

Administrator determines allocation/auction split; considering consumer impact, competitiveness, etc.

15% limit on use of international credits and domestic reduction or sequestration offsets
Borrowing for 5-year periods with interest

Credit for reductions before 2012
Early actors may use offsets to meet 35% of reductions

Funds and incentives for tech R&D, efficiency adaptation, mitigating effects on poor

Waxman
H.R.1590 – 3/20/2007
Safe Climate Act of 2007

All 6 GHGs
Economy-wide, point of regulation not specified

2009 level in 2010
2%/year reduction from 2011-2020

1990 levels in 2020
5%/year reduction from 2020-2029

5% year reduction from 2030-2050
80% below 1990 levels in 2050

Determined by the President; requires unspecified amount of  allowances to be auctioned

Not specified

Goal to “recognize and reward early reductions”

Standards for vehicles, efficiency, renewables