Cap-and-trade
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1]The proposal -- frequently referred to as a cap-and-trade plan -- would establish an emissions trading system that would permit companies that emit fewer greenhouse gases than they are allowed to sell the excess portion to companies that exceed their allowances. The Act's sponsors estimate the bill would reduce U.S. greenhouse gas emissions by up to 63% by 2050. The initial limits between the years 2005 and 2012 would cap emissions at 5,200 million metric tons of CO2 equivalent to estimated levels during 2005. Between 2012 and 2020, emissions would be further reduced two percent per year, resulting in a 15% reduction below 2005 levels.[/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1]Lieberman-Warner would establish: [/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1](1) A domestic offset program, allowing regulated facilities to meet up to 15% of their compliance obligation in any given year with allowances generated through domestic offset projects certified by the EPA. They could meet their emissions limits, provided they receive approval from the EPA, by purchasing credits on the international emission trading market or by borrowing from credits they would normally receive in future years.[/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1](2) The Bonus Allowance Account, established using 4 percent of all emission allowances for calendar years 2012 through 2035, that would be used to reward firms that sequester their carbon emissions in geological formations.[/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1](3) The Carbon Market Efficiency Board to monitor and report on the national GHG emission market.[/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1]Within the Treasury Department, it would establish:[/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1](4) The Energy Assistance Fund to provide funds to the low-income home energy assistance program and to the rural energy assistance program;[/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1](5) The Climate Change Worker Training Fund to provide job training to any workers displaced by this Act and assistance to workers in need of training or re-training;[/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1](6) The Adaptation Fund to help various fish, wildlife, plants and associated ecological resources in adapting to and surviving the effects of climate change; [/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1](7) The Climate Change and National Security Council to submit annual reports to the President, Senate and House of Representatives the extent to which other countries are reducing greenhouse emissions through mandatory programs; the threat of climate change to sensitive populations, national resources and political stability; and potentially destabilizing impacts of climate change on national security;[/SIZE][/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1](8) The Climate Change Credit Corporation to auction emission allowances.[/SIZE][/FONT]
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International Reserve Allowance Program
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[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-1]The Act would require the President to establish an interagency group to determine whether foreign countries have addressed GHG reduction. Before being allowed to trade, any U.S. importer of covered goods must submit approved international allowances. With a few exceptions, failure to make a CO2 emissions declaration (in writing to the administrator of U.S. Customs and Border Protection) for each import would result in the import being barred from entry.[/SIZE][/FONT]