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                                                    Order Code RL32055




                   CRS Report for Congress
                                       Received through the CRS Web




Climate Change Legislation in the 108th Congress




                                          Updated January 6, 2005



                                             Brent D. Yacobucci
                                       Specialist in Energy Policy
                        Resources, Science, and Industry Division

                                                   Kyna Powers
                                    Environmental Policy Analyst
                        Resources, Science, and Industry Division




 Congressional Research Service ~ The Library of Congress
    Climate Change Legislation in the 108th Congress

Summary
     Climate change and greenhouse gas (GHG) emissions were an issue in the 108th
Congress, as they were over the preceding decade. Bills directly addressing climate
change issues ranged from those focused primarily on climate change research (H.R.
1578 and S. 1164) to comprehensive emissions cap and trading programs for all six
greenhouse gases (S. 139 and H.R. 4067). Additional bills focused on GHG
reporting and registries (H.R. 6 (Senate-passed), H.R. 1245, S. 17, and S. 194), or on
power plant emissions of carbon dioxide (H.R. 2042, S. 139, S. 366, and S. 843).

      These climate change bills differed within and across categories. Among the
climate change research bills, there were common and divergent research focuses.
For example, a few bills, including S. 139 and S. 1164, would have directed research
on historical instances of climate change to develop climate change models.
Additional bills focused on research to examine vulnerabilities to climate change in
the United States, particularly with respect to human health, environmental, and
economic outcomes. Furthermore, some bills would have promoted research on
political and technological options to reduce GHG emissions.

     Among the six bills with GHG reporting and registry requirements, there were
also differences. The primary difference between reporting bills was how each
determined which entities must report. H.R. 6 (Senate version), H.R. 1245, H.R.
4067, and S. 139 would have established GHG emission thresholds, usually around
10,000 metric tons of carbon dioxide (or equivalent) per year, above which an entity
must submit records of its GHG emissions. However, H.R. 6 and H.R. 1245
excluded farms from the reporting requirement. The remaining bills, S. 17 and S.
194, would have tasked the Administrator of the Environmental Protection Agency
(EPA) with establishing the threshold requirement.

     There were also similarities and differences between cap and trade bills.
Specifically, H.R. 2024, S. 366, and S. 843 would have focused on fossil fuel-fired
electric generating facilities, while S. 139 and H.R. 4067 would have covered a
broader array of sources. Furthermore, H.R. 2024, S. 366, and S. 843 would have
capped one GHG -- carbon dioxide -- while S. 139 and H.R. 4067 would have
capped all six GHGs.

     This report briefly discusses basic concepts on which these bills were based, and
compares major provisions of the bills in each of the following categories: climate
change research, GHG reporting and registries, and cap and trade programs. This
report will not be updated.
Contents
      Climate Change Research Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
      GHG Reporting and Registry Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
      GHG Emission-Reduction Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
          Carbon Dioxide Reduction Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
          Comprehensive GHG Emissions Reductions . . . . . . . . . . . . . . . . . . . . 9

List of Tables
Table 1. Comparison of Climate Change Research Bills . . . . . . . . . . . . . . . . . . . . 3
Table 2. Comparison of GHG Reporting and Registry Bills . . . . . . . . . . . . . . . . . 7
Table 3. GHG Cap and Trade Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Appendix 1. Climate Change Bills in the 108th Congress . . . . . . . . . . . . . . . . . . 14
Appendix 2. Key Provisions of Climate Change Legislation in the
    108th Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
                Climate Change Legislation
                   in the 108th Congress

     Since 1992, when the United States ratified the United Nations' Framework
Convention on Climate Change (UNFCCC), a number of voluntary and regulatory
actions have been proposed or undertaken in the United States to decrease
greenhouse gas emissions. Most of these policies have been established primarily to
achieve energy or environmental goals, while also having the effect of reducing GHG
emissions.1

     In the 108th Congress, numerous bills were introduced that directly or indirectly
addressed climate change. Most bills focused on energy efficiency, energy
conservation, or non-fossil fuels. However, the focus of this report is on bills that
directly addressed climate change, not on bills that would have had indirect or
ancillary impacts on greenhouse gas emissions. This report describes and compares
climate-related bills, which fall into three major categories: (1) those that would have
established climate change research programs to further examine the origins and
effects of climate change (H.R. 6,2 H.R. 1578, H.R. 4067, S. 17, S. 139, and S.
1164); (2) those that would have established GHG monitoring systems as a basis for
research or for any future reduction program (H.R. 6, H.R. 1245, H.R. 4067, S. 17,
S. 139, and S. 194); and (3) those that would have established market-based
programs to directly limit emissions of CO2, the primary greenhouse gas (H.R. 2024,
S. 139, H.R. 4067, S. 366, and S. 843). The major provisions of these bills are
categorized in Appendix 1 and summarized in Appendix 2. While the body of this
report describes what each bill would have done, none of these bills became law in
the 108th Congress. If Members wish to enact similar legislation in the 109th
Congress (or later), new bills must be introduced.

Climate Change Research Bills
    Global climate change is a complex issue. While most scientists agree that the
climate is changing in response to greenhouse gas emissions, uncertainties
concerning the causes and the effects of climate change remain and are the subject


1
  Under the United Nations Framework Convention on Climate Change (UNFCCC),
greenhouse gases include carbon dioxide (CO2, the most ubiquitous and primary greenhouse
gas), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons
(PFCs), and sulfur hexaflurane (SF6). Some other greenhouse gases are controlled under the
Montreal Protocol on Substances That Deplete the Ozone Layer.
2
  For the purposes of this report, H.R. 6 always refers to the Senate-passed bill. The
conference report on H.R. 6 (H.Rept. 108-375) did not contain provisions on climate change.
The conference report was approved by the House on November 18, 2003. On November
21, a cloture motion on the conference report failed in the Senate.
                                           CRS-2

of scientific research.3 Federally, much of this research is conducted through the U.S.
Global Change Research Program.4

     Research Bills. Two bills in the 108th Congress, S. 1164 (Collins) and H.R.
1578 (M. Udall), focused primarily on climate change research.5 As shown in Table
1, these bills would have established research programs with different focuses. S.
1164 called for the development and testing of climate change models based on
historic climatic changes. H.R. 1578 focused on using historic trends to assess the
nation's vulnerabilities to climatic change and to assess climate change policy.

     While S. 1164 did not have any substantial non-research provisions, H.R. 1578
would also have established an interagency committee to develop vulnerability
assessments, facilitate interagency cooperation, and provide representation to
international meetings. This committee would have facilitated the establishment of
the United States Global Change Research Plan. The plan would have established
goals and priorities and would have identified options to achieve those aims.

     Research Provisions in Broader Bills. In addition to the research bills
H.R. 1578 and S. 1164, four bills (H.R. 6, H.R. 4067, S. 17, and S. 139) included
climate change research provisions as part of a broader climate change bill.
Specifically, research in H.R. 6 would have focused on climate change mitigation
technology, climate change adaptation, and resolving scientific and economic
uncertainty. The research provisions in S. 17 focused on a national assessment of
climate change impacts and a review of methods to address climate change.
Research under S. 139 would have focused on technology transfer barriers, the
impact of the Kyoto Protocol on the United States, climate change impacts, and
possible methods to reduce GHG emissions. The research provisions of H.R. 4067
were similar to those under S. 139, except that H.R. 4067 did not address technology
transfer or the impacts to the Kyoto Protocol, and added a section on agricultural
research.




3
 For more information on the science and policy of Global Climate Change see CRS Issue
Brief IB89005, Global Climate Change.
4
  One such document is U.S. Global Change Research Program, Climate Change Impacts
on the United States: The Potential Consequences of Climate Variability and Change.
(Washington, DC, 2000).        Available at [http://www.usgcrp.gov/usgcrp/Library/
nationalassessment/overview.htm], visited August 28, 2003.
5
  The research provisions of H.R. 6 (Senate-passed), S. 17, S. 139, and S. 843 are described
in later sections since these bills had other major focuses. This report does not include bills
with other focuses that also had research components related to climate change (particularly
sequestration, renewable energy, and energy efficiency), including H.R. 238, H.R. 984, H.R.
1213, H.R. 1395, H.R. 1645, H.R. 1777, H.R. 190, and H.R. 2088.
                                                                     CRS-3

                                    Table 1. Comparison of Climate Change Research Bills

             H.R. 1578 (M.              H.R. 4067           H.R. 6 (Senate-         S. 17 (Daschle)            S. 139             S. 1164 (Collins)
                Udall)                 (Gilchrest)             passed)                                      (Lieberman)
Research   Global                  Create indicators to    Modeling and           The economic,          Create indicators to    Create indicators to
Focus         Measurements           understand historic    assessment of           public health, and     understand historic     understand historic
           Studies of historic       climate change         climate change          environmental          climate change          climate change
              changes              Improve                  effects on              impacts of global    Improve                 Improve
            Information on           understanding of       economic and            warming and            understanding of        understanding of
              economic and           thresholds and         social systems.         climate change on      thresholds and          thresholds and
              demographic            nonlinearities of     Understanding            the United States.     nonlinearities of       nonlinearities of
              trends that affect     geophysical            response of human     Funding and              geophysical             geophysical
              vulnerability to       systems related to     (social and             effectiveness of       systems related to      systems related to
              climate change         climate change         economic) and           programs               climate change          climate change
           Interaction of          Develop and test         natural ecosystems      established to       Develop and test        Develop and test
              physical,              climate change         to climate change.      reduce                 climate change          climate change
              chemical,              models                Understanding the        greenhouse gas         models                  models
              biological and       Climate change           availability,           emissions.           Climate change
              social processes       standards and          benefits and costs                             standards and
              related to global      processes              of policy and                                  processes
              change               Vulnerability and        technology options                           Vulnerability and
           Initiatives to            adaptation to          to mitigate climate                            adaptation to
              determine, and         climate change         change risks.                                  climate change
              then meet, the       Technology transfer     Carbon sequestration                          Technology transfer
              information needs      barriers              GHG emissions from                              barriers
              of decision-         Agricultural effects     federal facilities
              makers.                   of climate
            and welfare, and            change and
              human social and          opportunities
              economic systems          for carbon
                                        sequestration
                                                                 CRS-4

              H.R. 1578 (M.              H.R. 4067      H.R. 6 (Senate-         S. 17 (Daschle)         S. 139             S. 1164 (Collins)
                 Udall)                 (Gilchrest)        passed)                                   (Lieberman)
Research    (Continued)                                                                           (Continued)
Focus       Effects of global                                                                     Impact of the Kyoto
              climate change on                                                                     Protocol on
              agriculture, energy                                                                   United States:
              production and                                                                        industry,
              use,                                                                                  international
              transportation,                                                                       cooperation on
              human health                                                                          scientific research
            Adoption rates of                                                                       and development,
              policy and                                                                            United States
              technology to                                                                         participation in
              reduce climate                                                                        environmental
              change variability                                                                    climate change
              and examine                                                                           mitigation efforts
              market and policy                                                                     and technology
              barriers                                                                              deployment

Source of   United States Global    National Science   National Academy of    Determined by the   National Science        Department of
Research     Change Research         Foundation,        Sciences,              Executive Office    Foundation,              Commerce
             Program                Department of      Department of           of the President   Department of
             (interagency)           Commerce           Energy (multiple                           Commerce
                                    Department of       offices),
                                     Agriculture       Department of
                                                        Agriculture, and
                                                       Office of National
                                                        Climate Change
                                                        Policy in the
                                                        Executive Office of
                                                        the President
                                                                       CRS-5

               H.R. 1578 (M.              H.R. 4067            H.R. 6 (Senate-        S. 17 (Daschle)           S. 139            S. 1164 (Collins)
                  Udall)                 (Gilchrest)              passed)                                    (Lieberman)
Outcomes     Vulnerability         Models of climate         Regional               A national            Models of climate      Models of climate
                Assessment            change                  vulnerabilities and     assessment of          change              change
             Policy Assessment     Report on technology       adaptation              climate change      Report on technology
             Annual Report         transfers income and       assessment              impacts             transfers income and
             Interagency climate   royalties                 Assessment of          Annual description    royalties
                and other global   Report on United           climate change          of measures the     Report on United
                change data           States impact of        effects on              United States has      States impact of
                management            Kyoto Protocol          economic and            adopted or             Kyoto Protocol
                working group      New measurements           social systems          implemented to      New measurements
                                      and standards          Annual Reports           reduce climate         and standards
                                   National Science          Change in National       change              National Science
                                      Foundation              Global Change                                  Foundation
                                      research                Research Plan                                  research
                                   Education program         Climate change
                                      for farmers on          strategy
                                      global climate
                                      change
                                   Technical assistance
                                      to coastal states on
                                      adapting to
                                      climate change

Research     None specified        Yes                       Yes                    None specified        Yes                    Yes
Funding
Authorized
                                        CRS-6

GHG Reporting and Registry Bills
     Under the UNFCCC, the United States annually reports on its GHG emissions.6
The United States Environmental Protection Agency (EPA) does this reporting using
various techniques (e.g., fuel analysis for CO2). The three dominant sources of GHG
emissions are electricity generation (33.1%), transportation (26.9%), and industry
(19%).7 At the national level, electric utilities must report their GHG emissions
pursuant to the 1990 Clean Air Act, but there is no overall national GHG reporting
requirement. However, some states also gather data through voluntary or mandatory
GHG emissions reporting mechanisms.8

      Four bills, Title 10 of H.R. 6 (Senate-passed version),9 H.R. 1245 (Olver), S. 17
(Daschle), and S. 194 (Corzine) focused primarily on expanding emissions reporting
to a broad array of sources. (See Table 2.) While S. 17 and S. 194 directed the EPA
to determine who must report emissions information, H.R. 6 established a category
of covered sources. Furthermore, these bills would have established a national
registry to collect annual lists submitted by entities on their GHG emissions and
sources, and would have established a national GHG registry to collect voluntarily
reported information on GHG emissions reductions. S. 17 and S. 194 would also
have required the EPA Administrator and the Secretaries of Commerce, Agriculture,
and Energy to develop tools for quantifying, verifying, reporting, and accounting for
GHG emissions, and would have required the EPA Administrator to publish an
annual national GHG emissions inventory. While these bills established reporting
requirements as the basis for future regulations, two other bills (S. 139 and H.R.
4067) would have established a monitoring program as the basis for a GHG cap and
trade program. Specifically, these bills would have included a requirement that the
Administrator of the EPA establish a national GHG database and develop methods
and standards to measure and verify GHG emissions.

     In addition to their different GHG reporting strategies, these bills had other
major components. For example, S. 17 set a goal for the President to reduce the
federal government's net GHG emissions to 1990 levels by 2013. H.R. 6 would have
established the Office of National Climate Change Policy to develop a National
Climate Change Strategy with the long-term goal of stabilization of greenhouse gas
concentrations. S. 17 would also have authorized $2 billion per year in grants to state
and local governments to reduce GHG emissions.


6
  See CRS Report 98-235 ENR, Global Climate Change: U.S. Greenhouse Gas Emissions
-- Status, Trends, and Projections.
7
  U.S. Environmental Protection Agency, U.S. GHG Emissions and Sinks 1990-2001, p.
ES-6. Additional sources are agriculture (7.6%), commerce (7.2%), and residential
activities (5.4%).
8
 See CRS Report RL32043, Climate Change: State and Local Actions to Address
Greenhouse Gas Emissions.
9
  The Senate-passed version of H.R. 6 was identical to the Senate-passed version of H.R.
4 from the 107th Congress. There were no climate change provisions in the House-passed
version of H.R. 6 from the 108th Congress, or in the conference report on H.R. 6 (H.Rept.
108-375).
                                                                  CRS-7

                                 Table 2. Comparison of GHG Reporting and Registry Bills

            H.R. 6 (Senate      H.R. 1245 (Olver)          H.R. 4067             S. 17 (Daschle)              S. 139             S. 194 (Corzine)
               Passed)                                    (Gilchrest)                                      (Lieberman)
Covered   Entities that emit    Entities that emit    Entities that:           Entities that exceed    Entities that:           Entities that exceed
Entity     more than 10,000      more than 10,000     (A) own or control        thresholds to be set   (A) own or control        thresholds to be set
           metric tons of CO2    metric tons of CO2     sources of GHG          by the Administrator     sources of GHG          by the
           (or equivalent)       (or equivalent)        emissions in the        of the EPA               emissions in the        Administrator of
                                Major manufacturers     electric power,                                  electric power,         the EPA
                                 or importers of        industrial, or                                   industrial, or
                                 motor vehicles         commercial sectors                               commercial sectors
                                Manufacturers or        of the United States                             of the United States
                                 importers of DOE-      economy, refine or                               economy, refine or
                                 listed products        import petroleum                                 import petroleum
                                                        products for use in                              products for use in
                                                        transportation, or                               transportation, or
                                                        produce or import                                produce or import
                                                        HFCs PFCs, or                                    HFCs PFCs, or
                                                        SF6, and                                         SF6, and
                                                      (B) emit more than                               (B) emit more than
                                                        10,000 metric tons                               10,000 metric tons
                                                        of GHG/ year (CO2                                of GHG/ year (CO2
                                                        or equivalent) or                                or equivalent) or
                                                        produce or import                                produce or import
                                                        petroleum                                        petroleum
                                                        products, HFCs,                                  products, HFCs,
                                                        PFCs, SF6, or                                    PFCs, SF6, or
                                                        other greenhouse                                 other greenhouse
                                                        gases that, when                                 gases that, when
                                                        used, will emit over                             used, will emit over
                                                        10,000 metric tons                               10,000 metric tons
                                                        of GHG/year CO2                                  of GHG/year CO2
                                                        (or equivalent)                                  (or equivalent)
                                                                       CRS-8

               H.R. 6 (Senate       H.R. 1245 (Olver)             H.R. 4067      S. 17 (Daschle)         S. 139        S. 194 (Corzine)
                  Passed)                                        (Gilchrest)                          (Lieberman)
Excluded     Feedlots and Farms     Farms                  None indicated      None indicated      None indicated     None indicated
Entities
Covered      The 6 GHGs: CO2,       The 6 GHGs: CO2,       The 6 GHGs: CO2,    The 6 GHGs: CO2,    The 6 GHGs: CO2,   The 6 GHGs: CO2,
GHGs         CH4, N2O, HFCs,         CH4, N2O, HFCs,       CH4, N2O, HFCs,     CH4, N2O, HFCs,     CH4, N2O, HFCs,    CH4, N2O, HFCs,
             PFCs, SF6               PFCs, SF6             PFCs, SF6           PFCs, SF6           PFCs, SF6          PFCs, SF6

             Other substances may   Other substances may
               be added              be added

Includes     Yes                    Yes                    Yes                 Yes                 Yes                Yes
Provisions
for
Voluntary
Reporting
                                           CRS-9

GHG Emission-Reduction Bills
     The United States has no federal GHG reduction requirements, though proposals
to require such reductions have been made. These proposals have included
"command and control" regulations on emissions, GHG emission taxes, and market-
based techniques to limit emissions. The last, market-based programs, typically take
as their model the Clean Air Act acid rain program.10

      In the 108th Congress, bills were introduced that would have established market-
based GHG reductions (see Table 3). One pair of bills, S. 139 and H.R. 4067, would
have capped the emissions of the six greenhouse gases specified in the United
Nations' Framework Convention on Climate Change.11 Three other bills, H.R. 2042,
S. 366, and S. 843, would have focused on reducing carbon dioxide from electric
utilities. Each of these bills would have used market-based trading mechanisms to
limit GHG emissions. Cap and trade programs set strict limits on specific emissions
from a particular group of sources, allowing individual sources to trade reductions.
This flexibility in who makes reductions leads to lower costs. One method is to
allocate emissions allowances to each source. Allowances can be bought or sold. In
a well-functioning market, entities that face relatively low emission-reduction costs
would achieve extra emission reductions. Then these entities would sell their unused
allowances to entities that face higher emission-reduction costs. An entity facing
higher costs could then purchase allowances to exceed its initial emissions cap.12

     Carbon Dioxide Reduction Bills. As shown in Table 3, H.R. 2042
(Waxman), S. 36613 (Jeffords), and S. 843 (Carper) focused on electric utility
emissions.14 These bills would have limited emissions of carbon dioxide, along with
other air pollutants.15 (See Table 3.) The first round of emissions reductions would
have gone into effect in the year 2009. S. 843 would also have included a second
phase of emissions reductions beginning in 2012.

     Comprehensive GHG Emissions Reductions. Unlike other bills
proposed in the 108th Congress, the Climate Stewardship Act (S. 139 and H.R. 4067)
focused on achieving market-driven reductions in all six greenhouse gases (see Table
3). The legislation applied to entities in the electricity, transportation, industry, and


10
   The acid rain program caps emissions from each source, but allows sources to exceed
their caps if they purchase credits from sources that achieve extra emissions reductions.
11
     The six greenhouse gases are carbon dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons, and sulfur hexaluoride.
12
  For more information on market mechanisms, see CRS Report IB97057, Global Climate
Change: Market-Based Strategies to Reduce Greenhouse Gases.
13
     S. 366 was similar to S. 566 from the 107th Congress.
14
   S. 485 (Inhofe), the Clear Skies Act of 2003, also established a cap and trade program for
nitrogen oxides from utilities. However, S. 485 is not included in Table 3 because it did not
address carbon dioxide, the primary greenhouse gas.
15
    This report does not discuss bills that would have reduced other pollutants without
including CO2. Such bills included H.R. 203, H.R. 999 and S. 485.
                                       CRS-10

commercial sectors that emit over 11,023 tons of greenhouse gases per year. Starting
in 2010, the bills would have capped total GHG emissions at 6.5 billion tons (CO2
equivalent emissions), reduced by the amount of CO2 (equivalent emissions) from
non-covered entities in the year 2000. After 2015, S. 139 would have further
restricted emissions to 5.65 billion tons, reduced by the amount of emissions from
non-covered entities in 1990. Both bills would also have established a formula for
allocating GHG emissions allowances, and would have established a climate change
credit corporation to manage allowance trading.

      In addition to establishing caps on all six greenhouse gases, the bills would have
supported climate change research and established a GHG emissions inventory. The
bills also included a requirement that the Administrator of the EPA establish a
national GHG database, and develop methods and standards to measure and verify
GHG emissions. (See Table 1 and Table 2.)
                                                                           CRS-11

                                                       Table 3. GHG Cap and Trade Bills

                   H.R. 4067 (Gilchrest)         S. 139 (Lieberman)         H.R. 2042 (Waxman)              S. 366 (Jeffords)            S. 843 (Carper)
Covered            Any electric power,         Any electric power,          Any fossil fuel-fired       Any fossil fuel-fired        Any fossil fuel-fired16
sources            industrial, or commercial   industrial, or commercial    electric generating         electric generating          electric generating
                   entity that emits over      entity that emits over       facility that has a         facility that has a          facility that has a
                   10,000 metric tons of       10,000 metric tons of        capacity of greater than    capacity of greater than     capacity of greater than
                   CO2 equivalent/year; any    CO2 equivalent/year; any     15 megawatts and            15 megawatts, generates      25 megawatts and
                   refiner or importer of      refiner or importer of       generates electricity for   electricity for sale, and    generates electricity for
                   petroleum products for      petroleum products for       sale.                       emits a covered pollutant    sale.
                   transportation use that     transportation use that                                  into the air
                   when combusted will         when combusted will
                   emit over 10,000 metric     emit over 10,000 metric
                   tons of CO2                 tons of CO2
                   equivalent/year; and, any   equivalent/year; and, any
                   importer or producer of     importer or producer of
                   HFCs, PFCs or SF6 that      HFCs, PFCs or SF6 that
                   when used will emit over    when used will emit over
                   10,000 metric tons of       10,000 metric tons of
                   CO2 equivalent/year.        CO2 equivalent/year.

Covered            All 6 GHGs                  All 6 GHGs                   1 GHG: carbon dioxide       1 GHG: carbon dioxide        1 GHG: carbon dioxide
pollutants                                                                  Other Pollutants: sulfur    Other Pollutants: sulfur     Other Pollutants: sulfur
                                                                               dioxide, nitrogen          dioxide, nitrogen            dioxide, nitrogen
                                                                               oxides, and mercury        oxides, and mercury          oxides, and mercury




             16
                The regulations for mercury are for coal-fired electric generating units rather than fossil fuel-fired. Covered sources are also
             different for sulfur dioxide.
                                                                          CRS-12

                  H.R. 4067 (Gilchrest)        S. 139 (Lieberman)          H.R. 2042 (Waxman)           S. 366 (Jeffords)           S. 843 (Carper)
Emissions cap     6.49 billion tons of CO2    6.49 billion tons of CO2     Reduce CO2 emissions     CO2 emissions to 2.05        Tons of CO2 emitted
                  equivalent/year from             equivalent/year         to 1990 levels by 2009   billion tons/yr17            from affected units in
                  2009 to 2015 for all             from 2009 to 2015                                beginning in 2009            2006, beginning in 2009
                  covered entities taken           for all covered
                  together.                        entities taken                                                                Tons of CO2 emitted
                                                   together.                                                                     from affected units in
                                              5.64 billion tons of CO2                                                           2001, beginning in 2012
                                                   equivalent/year
                                                   after 2015.
Implementation    Tradeable allowance         Tradeable allowance          To be determined by      Tradeable allowance          Tradeable allowance
Strategy          system. EPA shall           system. EPA shall            EPA -- market            system. Allowances           system. Allocation
                  determine allocations       determine allocations        mechanisms permitted     allocated to various         formulas based on
                  based on several            based on several             (except for Hg)          sectors and interests,       generating efficiency.
                  economic and equity         economic and equity                                   including households,
                  criteria including          criteria including                                    dislocated workers and       Allocations includes a
                  efficiency and impact on    efficiency and impact on                              communities, electricity     new source reserve to
                  consumers. Allowances       consumers. Allowances                                 intensive industries,        provide allowances to
                  to be allocated upstream    to be allocated upstream                              affected utilities, energy   newly constructed
                  to refiners and importers   to refiners and importers                             efficiency and renewable     sources.
                  of transportation fuel      of transportation fuel                                energy activities, and
                  along with producers of     along with producers of                               sequestration activities.
                  HFCs, PFCs, and SF6;        HFCs, PFCs, and SF6;
                  downstream to electric      downstream to electric
                  generation, industrial,     generation, industrial,
                  and commercial entities     and commercial entities




            17
              S. 366 would further limit the number of emission allowances in present year by the number of tons emitted two years prior by
            small electricity generating facilities, and by any number required to protect the public health, welfare, or the environment.
                                                                            CRS-13

                     H.R. 4067 (Gilchrest)       S. 139 (Lieberman)          H.R. 2042 (Waxman)           S. 366 (Jeffords)           S. 843 (Carper)
Percentage          -5% c                       -5% b,c                      -9.5%                    -7.5%                        -5.1% a
change v.
business as
usual by 2010
Percentage          +27.7% c                    +27.7% b,c                   +21.7                    +24.2%                       +27.5% a
change v. 1990
levels
(UNFCCC
baseline year)
Penalties for       Excess emission penalty     Excess emission penalty      none specified           Same as CAA, title IV        Excess emission penalty
non-compliance      equal to three times the    equal to three times the                              except excess emission       of $100 per ton plus one-
                    market price for            market price for                                      penalty is three times the   for-one offset from
                    allowance on the last day   allowance on the last day                             average market price for     future emissions
                    of the year at issue        of the year at issue                                  allowances                   allocations
a
  Assumes requirement of S. 843 is achieved in 2010, rather than 2013.
b
  Phase 1 only. Phase 2 would involve a 2016 reduction down to 1990 levels by affected sources.
c
  Depending on actual coverage and the implementation strategies employed by affected sources, reductions achieved could be above the 5% estimate
     presented here. CRS estimates based on 85% coverage and U.S.-only implementation would be about 8.8% in 2010, 22.6% above 1990 levels.

Source: CRS calculations based on projections contained in the UNFCCC Secretariat's 2002 Climate Action Report. Available at:
[http://www.epa.gov/globalwarming/publications/car/index.html]. For more information see CRS Report RL31779.
                                                                            CRS-14

                                          Appendix 1. Climate Change Bills in the 108th Congress
                                                                                                                   CO2 and Comprehensive
                                                                                      GHG        Set    CO2 & NOx NOx Emissions Caps
                                                                    Climate Clarify Reporting Emissions Emission Allowance and Allowance
                                                                    Change Research and        Goal for  Caps for Trading Trading for all
                    Bill (s) and Short Title (s)                    Research Methods Registry   U.S.     Utilities Program     GHGs       Other
                                                                      SENATE BILLS
S. 17 (Daschle)                                                        X       X        X         X                                        X
Global Climate Security Act of 2003, National GHG emissions
Inventory and Registry Act of 2003
S. 139 (Lieberman)                                                      X         X         X                                    X         X
Climate Stewardship Act of 2003
S. 194 (Corzine)                                                                  X         X                                              X
National GHG Emissions Inventory and Registry Act of 2003
S. 366 (Jeffords)                                                                                           X         X                    X
Clean Power Act of 2003
S. 843 (Carper)                                                                                             X         X                    X
Clean Air Planning Act of 2003
S. 1164 (Collins)                                                       X
Abrupt Climate Change Research Act of 2003
H.R. 6 (As passed by the Senate)a                                       X         X         X                                              X
Energy Policy Act of 2003
                                                                        HOUSE BILLS
H.R. 1245 (Olver)                                                                            X                                             X
National GHG Emissions Inventory Act of 2003
H.R. 1578 (M. Udall)                                                     X                                                                 X
Global Change Research and Data Management Act of 2003
H.R. 2042 (Waxman)                                                                                          X         X
Clean Smokestacks Act of 2003
H.R. 4067 (Gilchrest)                                                    X         X         X                                   X         X
Climate Stewardship Act of 2004
a
  No climate provisions in House-passed H.R. 6, or in the conference report on H.R. 6 (H.Rept. 108-375)
                                                       CRS-15

             Appendix 2. Key Provisions of Climate Change Legislation in the 108th Congress

Bill No.   Sponsor            Last Major Action                        Key Provisions
S. 17      Daschle            Referred to Senate Environment and       Establishes a mandatory greenhouse gas database. In addition, it
                              Public Works -- January 7, 2003          establishes a commission to help implement the UNFCCC.
                                                                       Authorizes $2 billion annually in grants to state and local
                                                                       governments to reduce greenhouse gas emissions. It does not
                                                                       mandate emissions reductions.

S. 139     Lieberman          Considered by Senate, referred back to   Requires any entity that emits more than 10,000 metric tons of
                              Senate Environment and Public Works      greenhouse gases (CO2 equivalent) to reduce emissions to year
                              -- October 30, 2003                      2000 levels by 2010, and 1990 levels by 2016. Allows: tradeable
                                                                       credits for reductions beyond those required, reductions from
                                                                       non-covered entities, increases in carbon sequestration, increases
                                                                       in passenger vehicle fuel economy, and emissions reductions in
                                                                       other countries.
S. 194     Corzine            Referred to Senate Environment and       Establishes mandatory greenhouse gas registries, but does not
                              Public Works -- January 17, 2003         require emission reductions.
S. 366     Jeffords           Referred to Senate Environment and       The Clean Power Act of 2003 amends the Clean Air Act to
                              Public Works -- February 12, 2003        require the Administrator of the Environmental Protection
                                                                       Agency to promulgate regulations to achieve specified
                                                                       reductions in emissions of sulfur dioxide, nitrogen oxides, carbon
                                                                       dioxide and mercury from certain electric generation facilities by
                                                                       January 1, 2009.
S. 843     Carper             Referred to the Senate Environment and   Amends the Clean Air Act to establish a national uniform
                              Public Works -- April 9, 2003            multiple air pollutant regulatory program, including for carbon
                                                                       dioxide, for the electric generating sector.
S. 1164    Collins            Referred to the Senate Commerce,         Provides for research to understand, assess, and predict human-
                              Science and Transportation -- June 2,    induced and natural processes of abrupt climate change.
                              2003
                                                      CRS-16

Bill No.          Sponsor     Last Major Action                         Key Provisions
H.R. 6 (Senate-   Tauzin      Passed Senate -- July 31, 2003;           Establishes research programs focusing on vulnerabilities,
Passed version)               Conference report approved by House --    technology, sequestration, and other topics. Establishes
                                November 18, 2003                       emissions monitoring and reporting mechanisms.
                              Cloture motion on conference report
                                failed in Senate -- November 21, 2003
                              (Conference report and House-passed
                              version have no climate-related
                              provisions)
H.R. 1245         Olver       Referred to House Energy and              Requires EPA to establish a GHG emissions information system
                                Commerce -- March 24, 2003              to collect information submitted regarding an entity's GHG
                                                                        emissions. Establishes voluntary registry to collect information
                                                                        on emissions reductions.

H.R. 1578         M. Udall    House Science Committee motion to         Directs the President to develop a National Global Change
                               report failed -- May 1, 2003             Research Plan. Requires plan to set recommendations for
                                                                        research, research priorities, and establish a data management
                                                                        working group to coordinate global GHG research.

H.R. 2042         Waxman      Referred to House Energy and              Amends the Clean Air Act to require the EPA to promulgate
                                Commerce -- May 20, 2003                regulations to achieve specific reductions of carbon dioxide from
                                                                        power plants.

H.R. 4067         Gilchrest   Referred to House Science, Energy and     Requires any entity that emits more than 10,000 metric tons of
                              Commerce -- March 30, 2004                greenhouse gases (CO2 equivalent) to reduce emissions to year
                                                                        2000 levels by 2010. Allows: tradeable credits for reductions
                                                                        beyond those required, reductions from non-covered entities,
                                                                        increases in carbon sequestration, and emissions reductions in
                                                                        other countries.

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