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• U.S. Global Climate Change Policy: Evolving Views on Cost, Competitiveness, and Comprehensiveness [February 24, 2011]

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  "The nature of greenhouse gas (GHG) emissions (particularly carbon dioxide (CO2) emissions) makes their control difficult to integrate with the U.S economy and traditional U.S. energy policy. Despite the obvious interrelationship between energy policy and greenhouse gas (GHG) emissions, the United States has struggled to integrate the two. For a country that has traditionally used its relatively cheap supply of energy to substitute for more expensive labor and capital costs to compete internationally, this linkage is particularly strong, as witnessed by the nation's high GHG emissions per capita. In the face of this economic reality, along with continuing scientific uncertainty, debate over a greenhouse gas (GHG) reduction program can be categorized by three inter-related Cs: Cost, Competitiveness, and Comprehensiveness. [...] Fundamental policy assumptions regarding each of the three Cs have changed between the U.S. ratification of the 1992 UNFCCC [United Nations Framework Convention on Climate Change] and key events of the first decade of the 21st century--the George W. Bush Administration's 2001 decision to abandon the Kyoto Protocol process and the 2009 negotiations at Copenhagen. [...] The Copenhagen Agreement tried to preserve the twin goals of economic development and emissions reductions by allowing each nation to determine the costs it would accept; and also by establishing a mechanism by which the developed nations would provide funds for greenhouse gas reduction actions in developing nations. What remains to be seen is whether any voluntary program can successfully reduce emissions sufficiently to meet the UNFCCC goal of holding the increase in global temperatures to 2°C."

  Library of Congress. Congressional Research Service

  Yacobucci, Brent D.; Blodgett, John E.; Parker, Larry, 1954-

  2011-02-24
• U.S. Global Climate Change Policy: Evolving Views on Cost, Competitiveness, and Comprehensiveness [June 25, 2010]

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  "The nature of greenhouse gas (GHG) emissions (particularly carbon dioxide (CO2) emissions) makes their control difficult to integrate with the U.S economy and traditional U.S. energy policy. Despite the obvious interrelationship between energy policy and greenhouse gas (GHG) emissions, the United States has struggled to integrate the two. For a country that has traditionally used its relatively cheap supply of energy to substitute for more expensive labor and capital costs to compete internationally, this linkage is particularly strong, as witnessed by the nation's high GHG emissions per capita. In the face of this economic reality, along with continuing scientific uncertainty, debate over a greenhouse gas (GHG) reduction program can be categorized by three inter-related Cs: Cost, Competitiveness, and Comprehensiveness. [...] Fundamental policy assumptions regarding each of the three Cs have changed between the U.S. ratification of the 1992 UNFCCC [United Nations Framework Convention on Climate Change] and key events of the first decade of the 21st century--the George W. Bush Administration's 2001 decision to abandon the Kyoto Protocol process and the 2009 negotiations at Copenhagen. [...] The Copenhagen Agreement tried to preserve the twin goals of economic development and emissions reductions by allowing each nation to determine the costs it would accept; and also by establishing a mechanism by which the developed nations would provide funds for greenhouse gas reduction actions by developing nations. What remains to be seen is whether any voluntary program can successfully reduce emissions sufficiently to meet the UNFCCC goal of holding the increase in global temperatures to 2 degrees C."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Blodgett, John E.; Yacobucci, Brent D.

  2010-06-28
• Nuclear Power: Outlook for New U.S. Reactors [May 31, 2006]

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  "Nearly three decades after the most recent order was placed for a new nuclear power plant in the United States, several utilities are now expressing interest in building a total of up to 20 new reactors. The renewed interest in nuclear power has resulted primarily from sharply rising prices for natural gas, improved operation of existing reactors, and uncertainty about future restrictions on coal emissions. A substantial tax credit for nuclear generation provided by the Energy Policy Act of 2005 (P.L. 109-58) is also likely to improve the economic viability of qualifying new reactors. New nuclear plant applications can also take advantage of amendments to the Atomic Energy Act made in the early 1990s to reduce licensing delays. Currently, there are 103 licensed power reactors at 65 plant sites in 31 states, generating about one-fifth of U.S. electricity. Although no new U.S. reactors have started up since 1996, U.S. nuclear electricity generation has since grown by more than 20%. Much of this additional output resulted from reduced downtime, notably through shorter refueling outages. Licensed commercial reactors generated electricity at an average of 89.4% of their total capacity in 2005, after averaging about 75% in the mid-1990s and about 65% in the mid-1980s. […] Any substantial mandatory greenhouse gas control program would probably affect the cost of new coal-fired and natural gas-fired generation relative to nuclear power, particularly if nuclear power is assumed to have no greenhouse gas emissions. Continued delays in nuclear waste disposal facilities -- forcing spent fuel to be stored at plant sites -- could also affect the decision to construct new reactors. This report will not be updated."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Holt, Mark

  2006-05-31
• Nuclear Power: Outlook for New U.S. Reactors [Updated March 9, 2007]

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  "Nearly three decades after the most recent order was placed for a new nuclear power plant in the United States, several utilities are now expressing interest in building a total of up to 30 new reactors. The renewed interest in nuclear power has resulted primarily from higher prices for natural gas, improved operation of existing reactors, and uncertainty about future restrictions on coal emissions. A substantial tax credit and other incentives for nuclear generation provided by the Energy Policy Act of 2005 (P.L. 109-58) are also likely to improve the economic viability of qualifying new reactors. New nuclear plant applications can also take advantage of amendments to the Atomic Energy Act made in the early 1990s to reduce licensing delays. Currently, there are 103 licensed and operable power reactors at 65 plant sites in 31 states, generating about one-fifth of U.S. electricity. […] The nuclear production tax credit in the Energy Policy Act could have a significant impact on the economic viability of new nuclear power plants. […] Other factors will also be important in the commercial decision to invest in new nuclear plants, such as fossil fuel prices and the regulatory environment for both nuclear power and future fossil fuel-fired generation."

  Library of Congress. Congressional Research Service

  Holt, Mark; Parker, Larry, 1954-

  2007-03-09
• Nuclear Power: Outlook for New U.S. Reactors [Updated November 6, 2006]

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  "Nearly three decades after the most recent order was placed for a new nuclear power plant in the United States, several utilities are now expressing interest in building a total of up to 30 new reactors. The renewed interest in nuclear power has resulted primarily from higher prices for natural gas, improved operation of existing reactors, and uncertainty about future restrictions on coal emissions. A substantial tax credit and other incentives for nuclear generation provided by the Energy Policy Act of 2005 (P.L. 109-58) are also likely to improve the economic viability of qualifying new reactors. New nuclear plant applications can also take advantage of amendments to the Atomic Energy Act made in the early 1990s to reduce licensing delays. Currently, there are 103 licensed and operable power reactors at 65 plant sites in 31 states, generating about one-fifth of U.S. electricity. Although no new U.S. reactors have started up since 1996, U.S. nuclear electricity generation has since grown by more than 20%. Much of this additional output resulted from reduced downtime, notably through shorter refueling outages. Licensed commercial reactors generated electricity at an average of 89.4% of their total capacity in 2005, after averaging about 75% in the mid-1990s and about 65% in the mid-1980s."

  Library of Congress. Congressional Research Service

  Holt, Mark; Parker, Larry, 1954-

  2006-11-06
• Greenhouse Gases and Economic Development: An Empirical Approach to Defining Goals [February 4, 2005]

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  "This analysis identifies those nations that have combined the highest per capita GDPs with the lowest intensities of greenhouse gas emissions. Taking those nations as exemplars, it then examines possible outcomes from pursuing competing goals -- economic growth and development versus constraining greenhouse gases -- that are confounding efforts, such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, to address global climate change. Eight nations -- Austria, France, Italy, Iceland, Luxembourg, Norway, Sweden, and Switzerland -- combine high per capita GDP (among the top-20 nations) with the lowest intensity of greenhouse gas emissions of all nations (between 107 and 70 tons per million $ GDP). Taking the lower level of their per capita GDP ($23,500) and an intensity of 100, this analysis examines the greenhouse gas emission implications of a world achieving those levels of economic activity and greenhouse gas intensity."

  Library of Congress. Congressional Research Service

  Blodgett, John E.; Parker, Larry, 1954-

  2005-02-04
• Climate Change: Comparison and Analysis of S. 1766 and S. 2191 (S. 3036) [June 4, 2008]

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  "Several proposals designed to address greenhouse gases have been introduced in the 110th Congress. Two proposals, S. 1766, introduced by Senators Bingaman and Specter, and S. 2191, introduced by Senators Lieberman and Warner and reported by the Senate Committee on Environment and Public Works on May 20, 2008, are receiving increased scrutiny in preparation for Senate debate on S. 2191. On May 20, 2008, Senator Boxer introduced S. 3036, which is identical to the reported version of S. 2191 except that it contains a proposed budget amendment to make the bill deficit neutral. On June 2, 2008, the Senate invoked cloture on a motion to proceed on S. 3036, allowing discussion of the bill, but not allowing amendments to be introduced. As of June 4, 2008, it is unclear whether the Senate will agree on the motion to proceed, leading to further discussion and allowing amendments to be introduced. The two proposals -- S. 1766 and S. 2191 -- would establish market-based systems to limit emissions of greenhouse gases. However, the proposals differ in how those systems would work. S. 2191 would establish an absolute cap on emissions from covered entities and would allow entities to trade emissions under that cap. S. 1766 would establish emissions targets on covered entities and allow those entities to either meet emission reduction targets through a trading program or make a safety valve payment in lieu of reducing emissions. Under both proposals, short-term U.S. emissions would likely be below a business-as-usual scenario, although reductions under S. 2191 are guaranteed by the cap and are projected to be larger, particularly over the long-term. In contrast, costs under S. 1766 are likely to be lower and more predictable than under S. 2191. A major policy question is whether one is more concerned about the possible economic 'cost' of the program and therefore willing to accept some uncertainty about the amount of reduction received (i.e., favoring a 'safety valve' like S. 1766); or one is more concerned about achieving a specific 'emission reduction' level with costs handled efficiently, but not capped (i.e., pure tradeable permits as in S. 2191). S. 2191 leans toward the quantity (total emissions) side of the equation; S. 1766 leans toward the price side of the equation."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Yacobucci, Brent D.

  2008-06-04
• Greenhouse Gas Emissions: Conflicting Situations, Conflicting Perspectives [January 7, 2005]

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  "The World Resources Institute (WRI) has compiled greenhouse gas emissions and related data from a variety of sources into a database that is available publicly for analysis. This report analyzes those data to examine two issues. The first issue is the separate treatment of developed and developing nations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. This distinction has been a pivotal issue affecting U.S. climate change policy. The second issue is the continuing difficulty of the current approach designed to address climate change through limiting greenhouse gas emissions to a specified percentage of baseline emissions (typically 1990). The data permit examination of alternative approaches, such as focusing on per capita emissions or the greenhouse gas emission intensity (measured as emissions per unit of economic activity)."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Blodgett, John E.

  2005-01-07
• Capturing CO2 from Coal-Fired Power Plants: Challenges for a Comprehensive Strategy [April 15, 2010]

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  "Any comprehensive approach to substantially reduce greenhouse gases must address the world's dependency on coal for one-quarter of its energy demand, including almost half of its electricity demand. To maintain coal in the world's energy mix in a carbon-constrained future would require development of a technology to capture and stores its carbon dioxide emissions. This situation suggests to some that any greenhouse gas reduction program be delayed until such carbon capture technology has been demonstrated. however, technological innovation and the demands of a carbon control regime are interlined; a technology policy is no substitute for environmental policy and should be developed in concert with it."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Folger, Peter (Peter Franklin)

  2010-04-15
• Global Climate Change: U.S. Greenhouse Gas Emissions - Status, Trends, and Projections [Updated March 12, 2002]

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  "On 15 October 1992 the United States ratified the United Nations Framework Convention on Climate Change (UNFCCC), which entered into force 21 March 1994. This committed the U.S. to 'national policies' to limit 'its anthropogenic emissions of greenhouse gases,' with a voluntary goal of returning 'emissions of carbon dioxide [CO2] and other greenhouse gases [Methane (CH4), Nitrous Oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), and Sulfur Hexafluoride (SF6)]' at the 'end of the decade' 'to their 1990 levels.' Subsequently, in the 1997 Kyoto Protocol to the UNFCCC, the U.S. participated in negotiations that ended with agreement on further reductions that could become legally binding. The United States signed the Kyoto Protocol in 1998, but President Clinton did not send it to the Senate for advice and consent. President Bush has said that he rejects the Protocol, and U.S. Environmental Protection Agency Administrator Whitman has told reporters that the Administration will not be pursuing the UNFCCC commitment either. Instead, President Bush is proposing to shift the nation's climate change program from a goal of reducing emissions per se to a goal of reducing energy intensity -- the amount of greenhouse gases emitted per unit of economic productivity. Under the proposal, the intensity, which has been declining for a number of years, would decline18% between 2002 and 2012, as opposed to a 14% projected 'business as usual' decline."

  Library of Congress. Congressional Research Service

  Blodgett, John E.; Parker, Larry, 1954-

  2002-03-12
• Climate Change: Summary and Analysis of the 'Climate Stewardship Act' (S. 139/S.Amdt. 2028, and H.R. 4067) [Updated June 16, 2004]

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  "The Climate Stewardship Act (S. [Senate bill] 139, S.Amdt. [Senate Amendment] 2028, and H.R. 4067) would substantially reduce emissions of six greenhouse gases from anticipated levels beginning in 2010. Using a flexible, market-based implementation strategy, the bills would require economy-wide reductions, but permit participation in pre-certified international trading systems and in carbon sequestration programs to achieve part of the reduction requirement. The bills exclude residential and agricultural sources of greenhouse gases, along with entities emitting fewer than 10,000 metric tons of carbon dioxide equivalents annually. As introduced, S. 139 required emission reductions in two phases: in the first phase, beginning in 2010, annual greenhouse gas emissions from covered entities would be limited to 2000 levels; in the second phase, beginning in 2016, annual greenhouse gas emissions from covered entities would be further limited to 1990 levels. S.Amdt. 2028 and H.R. 4067 eliminate the second phase; this substantially reduces projected costs. This report will be updated as warranted."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Yacobucci, Brent D.

  2004-06-16
• Climate Change: EU and Proposed U.S. Approaches to Carbon Leakage and WTO Implications [April 12, 2010]

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  "This report examines the dynamics of this issue in three parts. First, the European Union (EU) has been implementing a cap-and-trade program for four years, and has finalized a third reduction phase that will run from 2013 through 2020.4 This report reviews and analyzes the experience of the EU in addressing its concerns about energy-intensive, trade-exposed industries, and the lessons those efforts may have for the United States. Second, the House-passed American Clean Energy and Security Act of 2009 (H.R. 2454) contains both a free allocation scheme and a border measure among its provisions to address the concerns of energy-intensive, trade-exposed industries. This report reviews and analyzes these provisions. Third, these same provisions could come under scrutiny under various U.S. trade agreements, particularly within the World Trade Organization (WTO). Concerns have been expressed that the border measure contained in H.R. 2454 would be suspect under various provisos of the WTO. This report analyzes the potential WTO implications of any attempt to implement a subsidy or a border measure under H.R. 2454."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Grimmett, Jeanne J.

  2010-04-12
• Carbon Tax and Greenhouse Gas Control: Options and Considerations for Congress [February 23, 2009]

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  "This report begins with an overview of the fundamental choices involved between a cost (tax) and a quantity (cap) control instrument. This includes a discussion of policy tools that could be employed to bridge the gap between a carbon tax and a cap-and-trade program. Following this overview, the report analyzes the potential advantages and disadvantages of a carbon tax. In many cases, carbon tax attributes are compared with those of a cap-and-trade program. The next section discusses implementation issues for a carbon tax, including where to apply the tax, at what level to set the tax, and options for distributing the tax revenues. The final section provides conclusions."

  Library of Congress. Congressional Research Service

  Ramseur, Jonathan L.; Parker, Larry, 1954-

  2009-02-23
• Costs and Benefits of Clear Skies: EPA's Analysis of Multi-Pollutant Clean Air Bills [November 23, 2005]

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  "The electric utility industry is a major source of air pollution, particularly sulfur dioxide (SO2), nitrogen oxides (NOx), and mercury (Hg), as well as suspected greenhouse gases, particularly carbon dioxide (CO2). On October 27, 2005, the Environmental Protection Agency (EPA) released a long-awaited analysis comparing the costs and benefits of alternative approaches to controlling this pollution. The alternative schemes focus on using market-oriented mechanisms directed at multiple pollutants to achieve health and environmental goals. The new analysis compares four versions of the Administration-based "Clear Skies" proposal to bills introduced by Senator Jeffords (S. 150) and Senator Carper (S. 843 of the 108th Congress), which would impose more stringent requirements. This report, which will not be updated, examines EPA's analysis and adjusts some of its assumptions to reflect current regulations. The most important adjustment is the choice of baseline. The agency's analysis assumes as a baseline that, in the absence of new federal legislation, EPA and the states will take no additional action to control SO2, NOx, Hg, or CO2 emissions beyond those actions finalized by mid-2004. This baseline is put forth despite three rules recently promulgated by EPA that limit SO2, NOx, and Hg emissions on a timeframe similar to that proposed by the Clear Skies legislation."

  Library of Congress. Congressional Research Service

  McCarthy, James E.; Parker, Larry, 1954-

  2005-11-23
• Climate Change: The EU Emissions Trading Scheme (ETS) Gets Ready for Kyoto [August 27, 2007]

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  "The European Union's (EU) Emissions Trading Scheme (ETS) is a cornerstone of the EU's efforts to meet its obligation under the Kyoto Protocol. It covers more than 11,500 energy intensive facilities across the 27 EU Member countries; covered entities emit about 45% of the EU's carbon dioxide emissions. A 'Phase 1' trading period began January 1, 2005. A second, Phase 2, trading period will begin in 2008, covering the period of the Kyoto Protocol, with a third one planned for 2013. Several positives resulting from the Phase 1 'learning by doing' exercise may assist the ETS in making the Phase 2 process run more smoothly, including: (1) greatly improving emissions data, (2) encouraging development of the Kyoto Protocol's project-based mechanisms -- Clean Development Mechanism (CDM) and Joint Implementation (JI), and (3) influencing corporate behavior to begin pricing in the value of allowances in decision-making, particularly in the electric utility sector. However, several issues that arose during the first phase remain contentious as the ETS moves into Phase 2, including allocation schemes, shutdown credits and new entrant reserves, and others. In addition, the expansion of the EU and the implementation of the directives linking the ETS to the Kyoto Protocol project-based mechanisms created new issues to which Phase 2 has had to respond."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-

  2007-08-27
• Greenhouse Gas Reduction: Cap-and-Trade Bills in the 110th Congress [July 13, 2007]

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  "A number of congressional proposals to advance programs that reduce greenhouse gases have been introduced in the 110th Congress. Proposals receiving particular attention would create market-based greenhouse gas reduction programs along the lines of the trading provisions of the current acid rain reduction program established by the 1990 Clean Air Act Amendments. This paper presents a side-by-side comparison of the major provisions of those bills and includes a glossary of common terms."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Yacobucci, Brent D.

  2007-07-13
• Global Climate Change: Market-Based Strategies to Reduce Greenhouse Gases [September 29, 2004]

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  "The possibility that human activities are releasing gases, including carbon dioxide (CO2), at rates that could affect global climate has resulted in proposals for national programs to curtail emissions. An international framework for specific reductions in greenhouse gases was negotiated at a meeting in Kyoto in December 1997. Concern about costs has encouraged consideration of CO2 reduction proposals that employ market-based mechanisms. The passage in 1990 of a tradeable allowance system for sulfur dioxide (SO2) control in the United States to reduce acid rain provides a precedent for such mechanisms. The two mechanisms receiving the most attention are a tradeable permit program (similar to the acid rain program) and carbon taxes. Proposed CO2 reduction schemes present large uncertainties in terms of the perceived reduction needs and the potential costs of achieving those reductions. Tradeable permit programs would reduce CO2 emissions to a specific level with the control cost handled efficiently, but not at a specific cost level. Carbon taxes would effectively cap marginal control costs at the specific tax level, but the precise level of CO2 reduction achieved would be less certain. Hence, a major policy question is whether one is more concerned about the possible cost of the program and therefore willing to accept some uncertainty about emission reduction in order to have some limits on costs (i.e., carbon taxes) or whether one is more concerned about achieving a specific emission reduction level with costs handled efficiently, but not capped (i.e., tradeable permits)."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-

  2004-09-29
• Climate Change: Costs and Benefits of the Cap-and-Trade Provisions of H.R. 2454 [September 14, 2009]

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  "This report examines seven studies that project the costs of H.R. 2454 to 2030 or beyond. It is difficult (and some would consider it unwise) to project costs up to the year 2030, much less beyond. The already tenuous assumption that current regulatory standards will remain constant becomes more unrealistic as time goes forward, and other unforeseen events (such as technological breakthroughs) loom as critical issues which cannot be modeled. Hence, 'long-term cost projections are at best speculative, and should be viewed with attentive skepticism.' The finer and more detailed the estimate presented, the greater the skepticism should be. In the words of the late Dr. Lincoln Moses, the first Administrator of the Energy Information Administration: 'There are no facts about the future.'"

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Yacobucci, Brent D.

  2009-09-14
• Climate Change: Potential Regulation of Stationary Greenhouse Gas Sources Under the Clean Air Act [May 14, 2009]

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  "In the 111th Congress, both the House and Senate committees of jurisdiction are expected to give climate change legislation high priority. The House Energy and Commerce Committee has already held hearings on draft legislation, and expects to hold markup before Memorial Day. The schedule for Senate action is less certain, but presumably it will follow House consideration. With the inauguration of President Obama, there is a proponent of greenhouse gas (GHG) legislation in the White House, as well, markedly increasing the probability for enacting some sort of legislation to reduce GHG emissions. The President has said that a new energy, environment, and climate policy will be 'a leading priority of my presidency, and a defining test of our time.' Although new legislation to address greenhouse gases is a leading priority of the President and many members of Congress, the ability to limit these emissions already exists under various Clean Air Act (CAA) authorities that Congress has enacted, a point underlined by the Supreme Court in an April 2007 decision (discussed below). Indeed, the U.S. Environmental Protection Agency (EPA) has already begun the process that could lead to greenhouse gas regulations for mobile sources in response to court decisions. […] This report discusses three major paths and two alternate paths of statutory authorities that have been identified by EPA and others as possible avenues the agency might take in addressing greenhouse gas emissions under existing CAA provisions. After discussing the approaches, we identify categories of control options EPA could consider, including an EPA-coordinated cap-and-trade program. Then we discuss the administrative difficulties in using the Clean Air Act for greenhouse gas control, particularly New Source Review and Title V permitting requirements. Finally, we conclude by putting the issue into the context of previous environmental challenges the CAA has faced."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; McCarthy, James E.

  2009-05-14
• Climate Change: Federal Laws and Policies Related to Greenhouse Gas Reductions [Updated January 28, 2008]

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  "Climate change is generally viewed as a global issue, but proposed responses generally require action at the national level. In 1992, the United States ratified the United Nations Framework Convention on Climate Change (UNFCCC) which called on industrialized countries to take the lead in reducing greenhouse gases. Over the past 15 years, a variety of voluntary and regulatory actions have been proposed or undertaken in the United States, including monitoring of utility carbon dioxide emissions, improved appliance efficiency, and incentives for developing renewable energy sources. In 2001, President George W. Bush rejected the Kyoto Protocol to the UNFCCC, which called for legally binding commitments by developed countries to reduce their greenhouse gas emissions. He also rejected the concept of mandatory emissions reductions. Since then, the Administration has focused U.S. climate change policy on voluntary initiatives to reduce the growth in greenhouse gas emissions. This focus is particularly evident in the Administration's 2006 Climate Action Report (CAR) submitted under the provisions of the UNFCCC. Of the roughly 50 programs summarized in the 2006 CAR, only seven are described as 'regulatory.' These regulatory programs were generally implemented to achieve energy or environmental goals other than the reduction of greenhouse gas emissions, but produced a concomitant emissions reduction. In this sense, they could be considered the results of a 'no regrets'3 policy in which climate change effects resulting from related air quality and energy policies are included in the decision-making process on new or modified rules. This report provides background on the evolution of U.S. climate change policy from ratification of the UNFCCC to the George W. Bush Administration's rejection of the Kyoto Protocol programs, to the present. Current major regulatory programs that monitor or reduce greenhouse gas emissions are identified, along with their estimated effect on greenhouse gas emissions. Finally, energy legislation enacted in the 109th and 110th Congresses that could directly or indirectly reduce greenhouse gases is discussed."

  Library of Congress. Congressional Research Service

  Yacobucci, Brent D.; Parker, Larry, 1954-

  2008-01-28
• EPA Regulation of Greenhouse Gases: Congressional Responses and Options [June 8, 2010]

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  "The Environmental Protection Agency's promulgation of an 'endangerment finding' for greenhouse gas (GHG) emissions in December 2009, and its subsequent promulgation of GHG emission standards for new motor vehicles on April 1, 2010, have raised concerns among some in Congress that the agency will now proceed to control GHG emissions from stationary sources, including power plants, manufacturing facilities, and others. Stationary sources account for 69% of U.S. emissions of greenhouse gases. If the United States is to reduce its total GHG emissions, as President Obama has committed to do, it will be necessary to address these sources. EPA's regulations limiting GHG emissions from new cars and light trucks will trigger at least two other Clean Air Act (CAA) provisions affecting stationary sources of air pollution. First, effective January 2, 2011, new or modified major stationary sources will have to undergo New Source Review (NSR) with respect to their GHGs in addition to any other pollutants subject to regulation under the CAA that are emitted by the source. This review will require affected sources to install Best Available Control Technology (BACT) to address their GHG emissions. Second, all major sources of GHGs (existing and new) will have to obtain permits under Title V of the CAA (or have existing permits modified to include their GHG requirements). Beyond these permitting requirements, because stationary sources, particularly coal-fired power plants, are the largest sources of greenhouse gas emissions, EPA is likely to find itself compelled to issue endangerment findings under other parts of the act, resulting in New Source Performance Standards for stationary sources or emission standards under other sections of the act. EPA shares congressional concerns about the potentially broad scope of these regulations, primarily because a literal reading of the act might require as many as 6 million stationary sources to obtain permits. Thus, on May 13, 2010, the agency finalized a 'Tailoring Rule' so that it can focus its resources on the largest emitters while deciding over a six-year period what to do about smaller sources. The agency is still in the process of developing recommendations on what the BACT requirements will be and expects to issue guidance on that in the fall of 2010."

  Library of Congress. Congressional Research Service

  McCarthy, James E.; Parker, Larry, 1954-

  2010-06-08
• Air Quality: Multi-Pollutant Legislation in the 110th Congress [Updated October 2, 2007]

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  "With the prospect of new layers of complexity being added to air pollution controls and with electricity restructuring putting a premium on economic efficiency, interest is being expressed in finding mechanisms to achieve health and environmental goals in simpler, more cost-effective ways. The electric utility industry is a major source of air pollution, particularly sulfur dioxide (SO2), nitrogen oxides (NOx), and mercury (Hg), as well as suspected greenhouse gases, particularly carbon dioxide (CO2). At issue is whether a new approach to environmental protection could achieve the nation's air quality goals more cost-effectively than the current system. One approach being proposed is a 'multi-pollutant' strategy - a framework based on a consistent set of emissions caps, implemented through emissions trading. Just how the proposed approach would fit with the current (and proposed) diverse regulatory regimes remains to be worked out; they might be replaced to the greatest extent feasible, or they might be overlaid by the framework of emissions caps. In February 2002, the Bush Administration announced two air quality initiatives. The first, 'Clear Skies,' would amend the Clean Air Act to place emission caps on electric utility emissions of SO2, NOx, and Hg. Implemented through a tradeable allowance program, the emissions caps would generally be imposed in two phases: 2008 and 2018. The second initiative begins a voluntary greenhouse gas reduction program. This plan, rather than capping CO2 emissions, focuses on improving the carbon efficiency of the economy, reducing current emissions of 183 metric tons per million dollars of GDP [Gross Domestic Product] to 151 metric tons per million dollars of GDP in 2012."

  Library of Congress. Congressional Research Service

  Blodgett, John E.; Parker, Larry, 1954-

  2007-10-02
• Clean Air Act Issues in the 109th Congress [Updated March 25, 2005]

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  "With the prospect of new layers of complexity being added to air pollution controls and with electricity restructuring putting a premium on economic efficiency, interest is being expressed in finding mechanisms to achieve health and environmental goals in simpler, more cost-effective ways. The electric utility industry is a major source of air pollution, particularly sulfur dioxide (SO2), nitrogen oxides (NOx), and mercury (Hg), as well as suspected greenhouse gases, particularly carbon dioxide (CO2). At issue is whether a new approach to environmental protection could achieve the nation's air quality goals more cost-effectively than the current system. One approach being proposed is a 'multi-pollutant' strategy - a framework based on a consistent set of emissions caps, implemented through emissions trading. Just how the proposed approach would fit with the current (and proposed) diverse regulatory regimes remains to be worked out; they might be replaced to the greatest extent feasible, or they might be overlaid by the framework of emissions caps. In February 2002, the Bush Administration announced two air quality initiatives. The first, 'Clear Skies,' would amend the Clean Air Act to place emission caps on electric utility emissions of SO2, NOx, and Hg. Implemented through a tradeable allowance program, the emissions caps would generally be imposed in two phases: 2008 and 2018. The second initiative begins a voluntary greenhouse gas reduction program. This plan, rather than capping CO2 emissions, focuses on improving the carbon efficiency of the economy, reducing current emissions of 183 metric tons per million dollars of GDP [Gross Domestic Product] to 151 metric tons per million dollars of GDP in 2012."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Blodgett, John E.

  2005-03-25
• Market-Based Greenhouse Gas Control: Selected Proposals in the 111th Congress [May 27, 2009]

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  "As of the date of this report, Members in the 111th Congress have introduced seven stand-alone proposals that would control greenhouse gas (GHG) emissions. The proposals offered to date would employ market-based approaches-either a cap-and-trade or carbon tax system, or some combination thereof-to reduce GHG emissions. The legislative proposals are varied in their overall approaches in controlling GHG emissions. Some control emissions by setting a quantity (or cap); others control emissions by setting a price (or tax/fee). In addition, the proposals differ in their inclusion of particular design elements, such as whether or not to allow offsets (emission reduction opportunities from economic sectors not directly addressed by the primary approach). H.R. 2454 (Waxman/Markey) has been the primary energy and climate change legislative proposal in the 111th Congress. It was introduced May 15, 2009, and subsequently modified and offered as a "Manager's Amendment" (May 18, 2009) for markup in the House Committee on Energy and Commerce. After making several amendments to the bill (most relating to the bill's energy provisions), the committee ordered the bill reported May 21, 2009. H.R. 2454 (Waxman/Markey) and H.R. 1862 (Van Hollen) would establish cap-and-trade programs, but they would differ in their implementation. For example, the latter would not allow offsets to be used for compliance purposes, while the former would allow covered entities to satisfy an increasing percentage (approximately 30% in 2012) of their compliance obligation with offsets. H.R. 1666 (Doggett) would also create a cap-and-trade system, but in the early years of the program, the number of emission allowances distributed would be based on achieving a specified allowance price. Three of the proposals-H.R. 594 (Stark), H.R. 1337 (Larson), and H.R. 2380 (Inglis)-would use a carbon tax approach to address carbon dioxide (CO2) emissions from fossil fuel combustion. H.R. 1683 (McDermott) would establish a program that may be described as a dynamic carbon tax: its tax rate would be linked with annual emission allocations (or caps)."

  Library of Congress. Congressional Research Service

  Ramseur, Jonathan L.; Parker, Larry, 1954-; Yacobucci, Brent D.

  2009-05-27
• Climate Change: Comparison of the Cap-and-Trade Provisions in H.R. 2454 and S. 1733 [November 5, 2009]

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  "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. […] 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."

  Library of Congress. Congressional Research Service

  Yacobucci, Brent D.; Ramseur, Jonathan L.; Parker, Larry, 1954-

  2009-11-05
• Clean Air Act: A Summary of the Act and Its Major Requirements [Updated February 15, 2007]

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  "This report summarizes the Clean Air Act and its major regulatory requirements. It excerpts, with minor modifications, the Clean Air Act chapter of CRS [Congressional Research Service] Report RL30798, which summarizes a dozen environmental statutes that form the basis for the programs of the Environmental Protection Agency. The principal statute addressing air quality concerns, the Clean Air Act was first enacted in 1955, with major revisions in 1970, 1977, and 1990. The Act requires EPA to set health-based standards for ambient air quality, sets deadlines for the achievement of those standards by state and local governments, and requires EPA to set national emission standards for large or ubiquitous sources of air pollution, including motor vehicles, power plants, and other industrial sources. In addition, the Act mandates emission controls for sources of 188 hazardous air pollutants, requires the prevention of significant deterioration of air quality in areas with clean air, requires a program to restore visibility impaired by regional haze in national parks and wilderness areas, and implements the Montreal Protocol to phase out most ozone-depleting chemicals. This report describes the Act's major provisions and provides tables listing all major amendments, with the year of enactment and Public Law number, and cross-referencing sections of the Act with the major U.S. Code sections of the codified statute."

  Library of Congress. Congressional Research Service

  McCarthy, James E.; Copeland, Claudia; Parker, Larry, 1954- . . .

  2007-02-15
• Climate Change: The European Union's Emissions Trading System (EU-ETS) [July 31, 2006]

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  "The European Union's (EU's) Emissions Trading System (ETS) is a cornerstone of the EU's efforts to meet its obligation under the Kyoto Protocol. It covers more than 11,500 energy intensive facilities across the 25 EU member countries, including oil refineries, powerplants over 20 megawatts (MW) in capacity, coke ovens, and iron and steel plants, along with cement, glass, lime, brick, ceramics, and pulp and paper installations. Cove red entities emit about 45% of the EU's carbon dioxide emissions. The trading program does not cover emissions of non-CO2 greenhouse gases, which account for about 20% of the EU's total greenhouse gas emissions. The first trading period began January 1, 2005. A second trading period is scheduled to begin in 2008, with a third one planned for 2013. In deciding on its trading program, the European Commission (EC) adopted a 'learning-by-doing' approach to prepare the EU for the Kyoto Protocol's emission limitations. The EU does not have major experience with emissions trading, and the EC felt that an initial program beginning in 2005 would give the EU practical familiarity in operating such a system."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-

  2006-07-31
• Regulating a Carbon Market: Issues Raised by the European Carbon and U.S. Sulfur Dioxide Allowance Markets [April 30, 2008]

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  "Regulating a Carbon Market: Issues Raised by the European Carbon and U.S. Sulfur Dioxide Allowance Markets Summary Both the European Union's Emissions Trading Scheme (EU-ETS) and the U.S. Title IV sulfur dioxide (SO2) program provide insights into regulatory issues that may face any future U.S. carbon market. From the initial operations of the EU-ETS, the 2006 price crash raised questions about the adequacy of market regulation. In particular, some suspect that information about allocations leaked before official publication, and that certain traders profited from this knowledge."

  Library of Congress. Congressional Research Service

  Jickling, Mark; Parker, Larry, 1954-

  2008-04-30
• Electricity: The Road Toward Restructuring [Updated August 10, 2004]

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  The Public Utility Holding Company Act of 1935 (PUHCA) and the Federal Power Act (FPA) were enacted to eliminate unfair practices and other abuses by electricity and gas holding companies by requiring federal control and regulation of interstate public utility holding companies. Prior to PUHCA, electricity holding companies were characterized as having excessive consumer rates, high debt-to-equity ratios, and unreliable service. PUHCA remained virtually unchanged for 50 years until enactment of the Public Utility Regulatory Policies Act of 1978 (PURPA, P.L. 95-617). PURPA was, in part, intended to augment electric utility generation with more efficiently produced electricity and to provide equitable rates to electric consumers. Utilities are required to buy all power produced by qualifying facilities (QFs) at "avoided cost." QFs are exempt from regulation under PUHCA and the FPA… Comprehensive electricity legislation involves three issues. The first is PUHCA reform. Some electric utilities want PUHCA changed so they can more easily diversify their assets. State regulators have expressed concerns that increased diversification could lead to abuses, including cross-subsidization. The second issue is PURPA's mandatory purchase requirement provisions. Many investor- owned utilities support repeal of these provisions. The third is retail wheeling. It involves allowing retail customers to choose their electric generation supplier.

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; Abel, Amy

  2004-08-10
• EPA's BACT Guidance for Greenhouse Gases from Stationary Sources [November 22, 2010]

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  "Stationary sources--a term that includes power plants, petroleum refineries, manufacturing facilities, and other non-mobile sources of air pollution--are not yet subject to any greenhouse gas (GHG) emission standards issued by the EPA; but because of the Clean Air Act's wording, such stationary sources will become subject to permit requirements for their GHG emissions beginning on January 2, 2011. Affected units will be subject to the permitting requirements of the Prevention of Significant Deterioration (PSD) and Title V provisions. For PSD, this will include state determinations of what constitutes Best Available Control Technology (BACT) that affected facilities will be required to install. On November 10, 2010, EPA released guidance and technical information to assist state authorities in issuing permits and determining BACT. Among the sources likely to be affected by implementation of the PSD permit requirements are new and modified electric generating units of all kinds, but particularly those fired by coal. These sources emit substantially more than EPA's threshold of 100,000 metric tons of CO2 annually: for example, a 500 megawatt (MW) coal-fired baseload power plant would emit on the order of three million metric tons of CO2 annually. The coal mining industry and coal-fired electric utilities face at least half a dozen major regulatory actions over the next few years; industry supporters view these rules collectively as a significant threat to the future of coal. Viewed in this context, the permit requirement is one more nail in what increasingly appears to them as coal's future coffin."

  Library of Congress. Congressional Research Service

  Parker, Larry, 1954-; McCarthy, James E.

  2010-11-22