Vote Smart's Synopsis:

Vote to pass a bill that establishes a cap-and-trade system.

Highlights:

• Increases the goal of achieving a reduction in greenhouse gas emissions by the following (Sec. 1):

• At least 45 percent below 1990 emissions levels by 2035; and

• At least 80 percent below 1990 emissions levels by 2050.

• Establishes a Joint Committee on Climate Action consisting of members of the Senate and House of Representatives appointed by both the President of the Senate and the Speaker of the House (Sec. 2).

• Authorizes businesses to buy tax credit allowances which will allow them to emit one metric ton of carbon dioxide (Sec. 15).

• Requires allowances directly distributed to certain electric companies be equal to 100% of the electric company’s forecast regulated emissions from 2021 to the end of 2030 (Sec. 20).

• Requires that from 2031 to the end of 2050, the direct distribution to an electric company must decline annually by a constant amount necessary to reduce direct distributions to 20% of the electric company’s average annual emissions for the “five most recent years” by 2050 (Sec. 20).

• Requires the Climate Policy Office to provide a number of allowances for direct distribution at no cost for EITE entities meeting certain conditions (Sec. 18).

• Requires the Climate Policy Office to designate a covered entity or opt-in entity as an EITE entity if they meet certain conditions (Sec. 24).

• Defines “greenhouse gas” as including, but not limited to (Sec. 121):

• Carbon dioxide or methane;

• Nitrous oxide or hydrofluorocarbons;

• Perfluorocarbons, hexafluoride, and nitrogen trifluoride. 

• Specifies that this act shall take effect immediately upon passage (Sec. 135).

• Defines an “EITE entity” as a covered entity or an opt-in entity that is engaged in the manufacture of goods through one or more emissions-intensive, trade-exposed processes, as further designated by the Climate Policy Office (Sec. 15).

Full Bill Text