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
This bill creates a cap-and-trade system for carbon emissions from power plants and industrial facilities that produce electricity or thermal energy. Starting in 2028, facilities must obtain emission allowances for each metric ton of CO2 they release, with the total allowances gradually decreasing over 20 years to drive emission reductions.
Who Benefits and How
Low-emission and renewable energy producers benefit the most - they receive emission allowances based on their output but need fewer allowances to cover their actual emissions, allowing them to sell surplus allowances to higher-emitting competitors for profit. Clean energy technology companies gain new market opportunities as facilities invest in emission-reducing equipment. Grant recipients can access the Carbon Mitigation Fund for projects that sequester carbon or reduce emissions.
Who Bears the Burden and How
Coal-fired and high-emission power plants face significant new costs - they must purchase additional emission allowances or pay Alternative Compliance Payments ($50-$70+ per ton, rising to Social Cost of Carbon by 2048). Fossil fuel-dependent utilities will need to either invest in cleaner technology, purchase allowances from competitors, or face steep penalties (3x the highest allowance price). Ratepayers may see higher electricity costs as utilities pass through compliance costs.
Key Provisions
- Requires facilities 2+ MW electric or 50+ MMBtu/hr thermal to submit one emission allowance per metric ton of CO2
- Creates tradeable emission allowances distributed based on output, declining 5-10% annually from 2027 baseline
- Establishes Alternative Compliance Payments starting at $50/ton in 2028, rising to Social Cost of Carbon by 2048
- Creates Carbon Mitigation Fund from compliance payments to fund offset grants for emission reduction projects
- Imposes penalties of 3x highest market price for non-compliance plus requirement to make up missed allowances
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Establishes a tradeable emissions allowance system for electricity and thermal energy facilities to reduce carbon dioxide emissions through market mechanisms, requiring covered facilities to submit emission allowances for each metric ton of CO2 released.
Key Policy Areas
Energy, Environment, Climate
Primary Purpose
Establishes a tradeable emissions allowance system for electricity and thermal energy facilities to reduce carbon dioxide emissions through market mechanisms, requiring covered facilities to submit emission allowances for each metric ton of CO2 released.
Policy Domains
Title VII - Tradeable Energy Performance Standards
Identified Gains
Contextual inference, no direct clause citation- Low-emission and renewable energy producers
- Clean energy technology companies
- Carbon capture and sequestration projects
- Electric vehicle infrastructure developers
- Energy efficiency service providers
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Coal-fired power plants
- High-emission fossil fuel facilities
- Natural gas utilities
- Industrial thermal energy producers
- Electricity ratepayers
Contextual inference, no direct clause citation
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.
Learn more about our methodology