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Kerry/Lieberman 'American Power Act' Released

12 May 2010 3:01 pm
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Helpful chart after the jump for comparing this proposed climate and energy bill, released today by senators John Kerry (D–MA) and Joe Lieberman (ID–CT). 

The main differences, from the start: an easier row to hoe for manufacturers and oil emitters in the Senate version, more money from the cap and trade revenues for working families in that bill, too.

Provision Obama Proposal Waxman-Markey Kerry-Lieberman
Overall Structure Economy-wide cap and trade, plus renewable electricity and energy efficiency standards and clean energy investment Utility, industry, and petroleum sector cap and trade starting in 2012, plus renewable electricity and energy efficiency standards and clean energy investment Utility (2012) and industry (2016) cap and trade with linked refinery cap, plus consumer rebates, support for state-level renewable electricity and energy efficiency standards, and energy investment
Emissions Targets 15% below 2005 (at 1990 levels) by 2020, 80% below 2005 (77% below 1990) by 2050 Capped Sectors: 17% below 2005 (3% below 1990) by 2020, 80% below 2005 by 2050
Overall economy goal: 20% below 2005 (7% below 1990) by 2020, 80% below 2005 by 2050
Capped Sectors: 17% below 2005 by 2020, 80% below 2005 by 2050, plus accelerated mitigation of super-GHGs, black carbon
Scientific Review Not discussed Presidential plan in 2015 and every four years thereafter TBA
Traditional Coal Plants “Standards that ban new traditional coal facilities” if necessary, and “cap on carbon will make it uneconomic to site traditional coal facilities and discourage the use of existing inefficient coal facilities” Price on carbon mitigated by free allocations based 50% on historical emissions; Clean Air Act performance standards in 2016 determined by EPA Price on carbon mitigated by free allocations TBA; Clean Air Act performance standards in 2016 determined by statute
Green Economy Investment $150 billion over ten years, including workforce training, plug-in hybrids, renewable electricity, advanced biofuels, advanced coal technology, nuclear power, and smart grid Approximately $100 billion over ten years, including workforce training, plug-in hybrids, renewable electricity, advanced biofuels, advanced coal technology, nuclear power, and smart grid $70 billion for clean/natural gas transportation over ten years, extensive support for nuclear, same support for advanced coal as W-M, and support for renewables
Permit Allocation Full auction Allocations based on historical emissions and energy production with 20% auction at start, phasing to 70% auction by 2030 Allocations TBA phasing to TBA auction by 2030
Renewable & Efficiency Standards 25% renewable electricity by 2025, 100% new building efficiency by 2030, phase out traditional incandescents by 2014 15% renewable electricity + 5% efficiency by 2020, 75% new building efficiency by 2030, appliance and lighting efficiency standards Support for state-level standards; if national standard based on Bingaman energy bill, weaker than projected business-as-usual
Consumer Protection LIHEAP, low-income weatherization grants, a “dedicated fund to assist low-income Americans,” plus Making Work Pay tax cut Over first ten years, 45% (approx. $30 billion) of allocated permits and auction revenues dedicated to consumer protection through rebates and efficiency measures, emphasizing low-income consumers Working families rebate checks from start; Allocated permits dedicated to consumer protection through rebates and efficiency measures; Universal rebate checks from 75% of auction revenues starting in 2026
Market Regulation Increased regulation of energy markets FERC and CFTC regulation, no over-the-counter derivatives trading, increased regulation of energy markets Cantwell-Collins language prohibits derivatives, limits permit auction to covered emitters
Agriculture and Deforestation Domestic and international incentives to sequester carbon and reduce deforestation, support for biofuels Pool of offsets plus supplemental fund of 5% of permits for domestic and international incentives to sequester carbon and reduce deforestation, support for biofuels Pool of offsets plus supplemental fund for domestic and international incentives to sequester carbon and reduce deforestation, support for rural energy program
Deficit Reduction Not discussed 10% of permits auctioned (approx. $8 billion) over first ten years for deficit reduction Obeys PAYGO; Starting in 2026, 25% of auction revenues for deficit reduction
Fuels and Transportation Increase biofuels to 60 million gallons by 2030, low-carbon fuel standard of 10% by 2010, 1 million plug‐in hybrid cars by 2025, raise fuel economy standards, smart growth funding, end oil subsidies, promote natural gas drilling, enhanced oil recovery Smart growth funding, plug-in hybrids, raise fuel economy standards $7 billion a year for smart growth funding, plug-in hybrids, natural gas vehicles, raise fuel economy standards; offshore drilling with revenue sharing and oil spill veto, natural gas fracking disclosure
Cost Containment International offsets Offset pool, banking and borrowing flexibility, soft price collar using permit reserve auction at $28 per ton going to 60% above three-year-average market price “Hard” price collar between $12 and $25 per ton, floor increases at 3%+CPI, ceiling at 5%+CPI, plus permit reserve auction, offsets like W-M
Clean Air Act And States Not discussed Only polluters above 25,000 tons of carbon dioxide equivalent a year, regional cap and trade suspended until 2017, EPA to set stationary source performance standards in 2016, some Clean Air Act provisions excluded Only polluters above 25,000 tons of carbon dioxide equivalent a year, regional cap and trade pre-empted, establishes coal-fired plant performance standards, some Clean Air Act provisions excluded
International Competitiveness Tax incentives for domestic auto industry Free allowances for trade-exposed industries, 2020 carbon tariff on imports Carbon tariff on imports
References: Barack Obama, 2007; Barack Obama, 8/3/08; Pew Center on Global Climate Change, 6/26/09; leaked drafts of American Power Act, 5/11/10.

(Source: Climate Progress)

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