As more blanks in draft legislation are filled in, Daniel F. Morris has this updated comparison of House and Senate climate and energy bills from the 111th Congress:
Download Comparison (PDF)
And if tables aren’t your thing:
Targets
Waxman-Markey seeks a 17% reduction of 2005 covered emissions levels in 2020.
Kerry-Boxer seeks a 20% reduction of 2005 covered emissions levels in 2020.
Allowance allocations
Waxman-Markey distributes approximately 85% of allocations to public and private entities and makes 15% available for auction in 2012.
Kerry-Boxer establishes an initial reservation of allocations, including set asides for deficit reduction and the strategic reserve, as well as stipulates specific usage of auction revenue. Not including the initial reservation, 78% of allocations are distributed and 23% are auctioned.
Reserve allowances
Waxman-Markey sets the reserve allowance price at $28 (2009 dollars) in 2012, which increases to 160% of 36-month rolling average daily reserve price after 2015.
Kerry-Boxer sets the reserve allowance price at $28 (2005 dollars) in 2012, which increases by 5% plus inflation until 2017, then by 7% plus inflation.
Offset amounts
Waxman-Markey sets a ceiling of 2 billion credits, 1 billion domestic and 1 billion international, though international can substitute for domestic up to 1.5 total international credits.
Kerry-Boxer sets a ceiling of 2 billion credits, 1.5 billion domestic and .5 billion international, though international can substitute for domestic up to 1.25 total international credits.
Carbon market regulation
Waxman-Markey delegates authority to the Federal Energy Regulatory Commission to regulate carbon-trading cash markets and to the Commodity Futures Trading Commission to regulate derivative markets.
Kerry-Boxer delegates all authority over carbon-trading markets (cash and derivatives) to the Commodity Futures Trading Commission.
International competitiveness
Waxman Markey allocates 15% of allowances to trade-sensitive industries and may require, in the absence of an international agreement, an international reserve allowance program (border tariffs) starting in 2020.
Kerry-Boxer will allocate some amount of allowances to trade-sensitive industries and has placeholder language indicating the use of some kind of ‘border measure.’
EPA authority
Waxman-Markey removes the authority of the EPA to further regulate large sources of greenhouse gases with the inception of the program.
Kerry-Boxer maintains the EPA’s authority to regulate large greenhouse gas sources in addition to the emissions reduction program.
Renewable electricity standards
Waxman-Markey establishes a 15% renewable energy standard with a 5% improved energy efficiency standards for a combined total of 20% by 2020.
Kerry-Boxer does not include any language establishing renewable energy standards.
Leave your questions and comments below or contact Daniel, morris@rff.org, or RFF’s Climate Policy Program Director Ray Kopp, kopp@rff.org.