	Background

On June 26, 2009, the House passed H.R. In addition to establishing a cap-and-trade system to regulate greenhouse gas emissions, the bill addresses energy efficiency, renewable energy, and other energy topics. On September 30, 2009, Senator Kerry introduced S. 1733 , the Clean Energy Jobs and American Power Act, which was referred to the Senate Committee on Environment and Public Works. The committee held hearings on the bill starting October 27, 2009, and markup of the bill began November 3. On November 5, the committee approved Senator Boxer's "Manager's Amendment" as a substitute, and ordered S. 1733 reported. Although there are significant differences in some portions of the House and Senate bills, both bills would require major reductions in greenhouse gas emissions from entities comprising roughly 85% of current U.S. greenhouse gas emissions. Covered sectors would include electricity production, natural gas distribution, petroleum refining, and industrial sectors. Both bills would also grant the Environmental Protection Agency (EPA) the authority to set greenhouse gas performance standards for some entities not covered by the cap-and-trade system. Through the cap-and-trade system and other programs, both bills aim to reduce U.S. greenhouse gas emissions to 83% below 2005 levels by 2050. Key Differences Between the Cap-and-Trade Provisions of H.R. There are six key differences between the two bills, which are discussed below:
The Senate bill contains a more stringent (i.e., lower) emissions cap between 2017 and 2029; Although the two bills allocate allowances and auction revenues to many of the same recipients, the amounts of those allocations are in some cases larger or smaller; The bills' treatment of offsets differs significantly; The House bill contains substantial provisions on regulating the carbon market. The Senate bill currently has a placeholder awaiting action by other Senate committees. The Senate bill currently has a placeholder awaiting action by other Senate committees. 2454 . Both bills contain provisions to limit EPA's authority to regulate greenhouse gas emissions as criteria air pollutants, hazardous air pollutants, or under the international pollution provisions of the Clean Air Act. Appendix. Comparison of the Cap-and-Trade Provisions in the American Clean Energy and Security Act (H.R.
On June 26, 2009, the House passed H.R. 2454, the American Clean Energy and Security Act of 2009. In addition to establishing a cap-and-trade system to regulate greenhouse gas emissions, the bill addresses energy efficiency, renewable energy, and other energy topics. On September 30, 2009, Senator Kerry introduced S. 1733, the Clean Energy Jobs and American Power Act, which was referred to the Senate Committee on Environment and Public Works. The committee held hearings on the bill starting October 27, 2009, and markup of the bill began November 3. On November 5, the committee approved Senator Boxer's "Manager's Amendment" as a substitute, and ordered S. 1733 reported.
Although there are significant differences in some portions of the House and Senate bills, both bills would require major reductions in greenhouse gas emissions from entities comprising roughly 85% of current U.S. greenhouse gas emissions. Covered sectors would include electricity production, natural gas distribution, petroleum refining, and industrial sectors. Both bills would also grant the Environmental Protection Agency (EPA) the authority to set greenhouse gas performance standards for some entities not covered by the cap-and-trade system. Through the cap-and-trade system and other programs, both bills aim to reduce U.S. greenhouse gas emissions to 20% below 2005 levels by 2020 and 83% below 2005 levels by 2050.
This report provides a comparison of the cap-and-trade provisions of these two bills. Most notably, there are six key differences between the bills: (1) the Senate bill has a more stringent emissions cap between 2017 and 2029; (2) the two bills allocate emissions allowances and auction revenue to different recipients at different levels; (3) the bills would treat offsets differently; (4) the House bill would establish extensive carbon market regulation (the Senate bill currently has a placeholder for this topic); (5) the House bill would establish a requirement that importers purchase special emission allowances for certain imports from countries without greenhouse gas controls (the Senate bill currently has a placeholder for this topic); and (6) both bills would limit the Environmental Protection Agency's authority to regulate greenhouse gases under the Clean Air Act, although in different ways. The Appendix contains a section-by-section comparison of the cap-and-trade provisions in the two bills.