Lieberman-Warner Climate Security Act Draft

Hill Heat, wearing both his reporter and analyst hats,
has the scoopage on Lieberman-Warner.

In this first post he has some comparison/contrast:

As reported at Gristmill, Sens. Lieberman and Warner intend to submit the draft of their cap-and-trade legislation, America’s Climate Security Act, today. The legislation incorporated suggestions from stakeholders to adjust some figures from the draft outline released at the beginning of August. Notably, the 2020 reduction from 2005 emissions levels is increased from 10% to 15% (the Sanders-Boxer target), and the peak auction percentage (reached in 2036) is increased from 52% to 73%. There are numerous other components, adjustments, and details.

Continuing :

Sanders-Lautenberg

• CAP: The 2020 target is as strong as Sanders-Boxer, but the 2050 target is much weaker (67% by 2050 instead of 80%) and only 80% of emissions are regulated; there are numerous explicit provisions to loosen controls to protect the economy but none to change them to stabilize atmospheric concentrations of GHG; however, it calls for a report every three years looks at both economic and environmental impacts
• POLLUTER PAYS: The bill does not transition quickly to a full auction. Spending of auction revenues is generally in line with Sanders-Lautenberg, though large amounts go to CCS development...

And:

Allowances

• Each year from 2012 to 2016 20% of that year’s National Emission Allowance Account for free to covered entities within the industry sector, transitioning to zero by 2036.
• In 2012 20% of the NEAA will be allocated to the electric power sector. A portion of that 20% will be free to new entrants to the electric power sector. The allocation will be at 20% from 2012 – 2016, then transition to 0% by 2036.
• 10% will be allocated to load-serving entities to defray energy-cost impacts on low- and middle-income consumers and to promote demand-side energy efficency, some of it for free to rural electric cooperative facilities.
• 8%5% will be allocated to covered entities who have taken pre-enactment action since the 1994 Rio Treaty to reduce greenhouse gas emissions. That 8%5% will transition to 0% by 2020 2017.
• Each year 4% will be allocated to state governments, half based on population, half on historical state emissions. Each year 9% will be allocated to state governments as such:
  • 5% split 1/3 based on LIHEAP expenditures; 1/3 based on population; 1/3 based on amount of coal mining, natural gas processing, and petroleum refining
  • 1% to states that have at least 90% of new buildings complying with the efficiency codes in the HR 3221
  • 1% to states that have adopted decoupling regulations for any electric and natural gas utilities in the state
  • 2% to states with a stricter cap than the federal cap
  States must use at least 90% of allowances on climate change mitigation and adaptation (e.g. wildfire suppression, technology R&D, subsidies for low-income consumers and energy-intensive industries)
• Each year until 2035 4% will be placed into a reserve “Bonus Account”, to be allocated to US coal mines firms who successfully perform geologic sequestration of CO2 from electricity generation, with a multiplier of 4.5 per unit of CO2 sequestered in 2012 that decreases to zero in 2040
• Each year 7.5% 5% will be allocated to farmers, foresters, and other landowners to store carbon in soils, crops, and forests.
• Each year 2.5% will be allocated to the transportation sector.
• Each year 3% will be allocated for reducing the rate of tropical deforestation in other nations
• 6% of the 2012 allowances, 4% of 2013, and 2% of 2012 are to be disbursed in early auctions starting within one year of enactment and ending in 2011

Allowances for Auction

• 24% in 2012 will go to auction under the aegis of the Climate Change Credit Corporation; rising to 52% by 2035 73% by 2036.

Auction Proceeds

• 20% for a public-private partnership for power-sector technologies including CCS
• 20% for public-private partnership for CCS
• 20% for transportation sector technologies and reducing miles traveled
• 10% for environmental mitigation
• 10% for SO2, NOx, mercury emission reduction from coal plants
• 10% to state and local for low-income community mitigation
• 10% for international mitigation

Impressive piece of work.
Here's his site.

His second post has some initial reactions from the big NGO's.
USCAP members Environmental Defense and the NRDC like it.
NRDC with reservations.

One of these days I'll get around to explaining the rent-seeking scams involved in:

1. Setting the base date.
2. The credit for so-called "early action". Note scare quotes. The lobbying power of USCAP has me all atremble.
3. Giving the permits freely to current emitters.