To amend the Clean Air Act to establish a tradeable energy performance standard for large electricity generators and thermal energy users, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill amends the Clean Air Act by adding Title VII to establish definitions and framework for a tradeable emissions allowance system covering electric, thermal, and cogeneration facilities, defines key terms for the emissions trading program including emission allowance, covered facilities, alternative compliance payment, and social cost of carbon, and requires owners/operators of covered facilities to submit one emission allowance per metric ton of CO2 released annually beginning 2028, with allowances valid for the year issued or the following year. It relies on compliance mandates, reporting requirements, definition changes, and appropriations. The main policy areas are Energy, Trade, Finance, and Environment.
Who Benefits and How
Low-emission power generators could gain revenue opportunities, Carbon capture and sequestration projects could gain revenue opportunities, and Renewable energy producers could gain revenue opportunities.
Who Bears the Burden and How
Coal-fired power plants could face higher costs, Non-compliant covered facilities could face increased risk, and Fossil fuel power plants would take on compliance duties.
Key Provisions
- Amends the Clean Air Act by adding Title VII to establish definitions and framework for a tradeable emissions allowance system covering electric, thermal, and cogeneration facilities.
- Defines key terms for the emissions trading program including emission allowance, covered facilities, alternative compliance payment, and social cost of carbon.
- Requires owners/operators of covered facilities to submit one emission allowance per metric ton of CO2 released annually beginning 2028, with allowances valid for the year issued or the following year.
- Establishes formula for distributing emission allowances to covered facilities based on output (MWh or MMBtu), with target declining 5-10% annually from 2027 baseline through 2048.
- Exempts allows smaller facilities below mandatory thresholds to voluntarily opt into the emissions trading program, with Administrator approval upon designating a representative.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill amends the Clean Air Act by adding Title VII to establish definitions and framework for a tradeable emissions allowance system covering electric, thermal, and cogeneration facilities, defines key terms for the emissions trading program including emission allowance, covered facilities, alternative compliance payment, and social cost of carbon, and requires owners/operators of covered facilities to submit one emission allowance per metric ton of CO2 released annually beginning 2028, with allowances valid for the year issued or the following year.
Key Policy Areas
Energy, Trade, Finance, Environment
Primary Purpose
The bill amends the Clean Air Act by adding Title VII to establish definitions and framework for a tradeable emissions allowance system covering electric, thermal, and cogeneration facilities, defines key terms for the emissions trading program including emission allowance, covered facilities, alternative compliance payment, and social cost of carbon, and requires owners/operators of covered facilities to submit one emission allowance per metric ton of CO2 released annually beginning 2028, with allowances valid for the year issued or the following year.
Policy Domains
Title VII - Tradeable Energy Performance Standards
Identified Gains
- Low-emission power generators
- Carbon capture and sequestration projects
- Renewable energy producers
- Nuclear power plants
- Energy efficiency service providers
Identified Costs
- Coal-fired power plants
- Non-compliant covered facilities
- Fossil fuel power plants
- Industrial thermal facilities (50+ MMBtu/hr)
- High-emission power plants
Sponsors
Legislative Progress
IntroducedMr. Casten introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Cogeneration facilities, Electric power generators (2+ MW capacity), Low-emission power generators
Positive-direction: Low-emission power generators, Renewable energy producers, Small-scale power generators (<2 MW)
Negative-direction: Cogeneration facilities, Electric power generators (2+ MW capacity), Non-compliant covered facilities
Coal-fired power plants, Fossil fuel power plants, High-emission power plants
Electric appliance manufacturers, High-emission industrial facilities, Industrial thermal facilities (50+ MMBtu/hr)
Positive-direction: Electric appliance manufacturers, Small thermal facilities (<50 MMBtu/hr)
Negative-direction: High-emission industrial facilities, Industrial thermal facilities (50+ MMBtu/hr), Natural gas appliance manufacturers
Environmental Protection Agency, Government Accountability Office
Carbon market speculators, Emissions trading market participants
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_administrator"
- → Administrator of the Environmental Protection Agency (EPA)
- "the_comptroller_general"
- → Comptroller General of the United States
- "the_commodity_futures_trading_commission"
- → Commodity Futures Trading Commission
Key Definitions
Terms defined in this bill
A payment made under section 703(e) in lieu of the submission of an emission allowance
An agreement entered into after enactment, for at least 10 years, between an Existing Covered Facility and a Newly Constructed Low-Emission Covered Facility for purchase of emission allowances
A facility that simultaneously produces useful thermal energy output and electricity with rated electric capacity of 2 megawatts or greater
A facility that produces electricity with rated electric capacity of 2 megawatts or greater
A facility that produces useful thermal energy output at 50+ million BTU/hour
A limited authorization to emit 1 metric ton of carbon dioxide that is distributed under section 703
Carbon dioxide that shall not enter the atmosphere for at least 200 years according to best available science
The economic damages from emitting one additional metric ton of CO2, per EPA November 2023 methodology
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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