For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34515 ------------------------------------------------------------------------------ Order Code RL34515 Climate Change: Comparison of S. 2191 as Reported (now S. 3036) with Proposed Boxer Amendment May 30, 2008 Brent D. Yacobucci and Larry Parker Specialists in Energy and Environmental Policy Resources, Science, and Industry Division Climate Change: Comparison of S. 2191 as Reported (now S. 3036) with Proposed Boxer Amendment Summary On December 7, 2007, the Senate Environment and Public Works (EPW) Committee ordered reported an amended version of S. 2191, the Lieberman-Warner Climate Security Act of 2008 (originally entitled America's Climate Security Act of 2007). On April 10, 2008, an amendment to make the bill revenue-neutral was submitted to CBO for analysis along with the committee version of S. 2191. On May 20, 2008, S. 2191 was reported by EPW. At the same time, Senator Boxer introduced S. 3036, which is identical to the reported version of S. 2191 except that it contains the proposed budget amendment. Both bills were placed on the Senate legislative calendar. On Thursday, May 22, Senator Reid filed for cloture on the motion to proceed on S. 3036. The cloture vote is scheduled for Monday, June 2 at 5:30 pm, with the preceding hour set for debate. In addition to S. 3036, Senator Boxer has proposed an amendment in the nature of a substitute, with significant changes from the committee version of S. 2191. This report provides a comparison of five key differences between S. 2191/S. 3036 and the proposed Boxer Amendment. This report supersedes a CRS Congressional Distribution Memorandum entitled "Comparison of S. 2191 as Reported (now S. 3036) with Proposed Boxer Substitute," dated May 28, 2008. Contents Cost-Containment Auction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Use of Domestic Offsets, International Offsets, and International Allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Changes in Established Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Allocation Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Carbon Market Oversight Mechanisms . . . . . . . . . . . . . . . . . . . . . . . . . 4 List of Tables Table 1. Estimated Allowances (millions) Allocated Under S. 3036 (S. 2191 as Reported plus Amendment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Table 2. Allocation of Revenues from Auctions of Remainder Allowances Under S. 3036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Table 3. Estimated Allowances Allocated Under Boxer Amendment, Part I (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Table 4. Estimated Allowances Allocated Under Boxer Amendment, Part II (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Table 5. Estimated Allowance Values and Auction Revenues Under S. 3036 (million 2005$) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Table 6. Estimated Allowance Values and Auction Revenues Under Boxer Amendment (million 2005$) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Climate Change: Comparison of S. 2191 as Reported (now S. 3036) with Proposed Boxer Amendment S. 2191 (the Lieberman-Warner Climate Security Act of 20081), introduced by Senator Lieberman, was reported by the Senate Committee on Environment and Public Works (EPW) on May 20, 2008. The bill would establish a mandatory cap- and-trade system to reduce greenhouse gas emissions from most sectors of the economy.2 As reported, S. 2191's emissions cap is estimated by its sponsors to require a 71% reduction from 2005 levels by 2050 from covered entities (the covered entities are estimated by the sponsors to account for 87% of total U.S. greenhouse gas emissions). Overall, the sponsors estimate that S. 2191 would reduce total U.S. greenhouse gas emissions by up to 66% from 2005 levels by 2050. On April 10, 2008, a proposed deficit reduction amendment was announced, aimed at making the bill revenue-neutral.3 A new version of the bill, S. 3036 -- identical to S. 2191 but also containing the deficit reduction amendment -- was introduced May 20, and a cloture motion was filed on that bill May 22. The Senate may begin discussion of S. 3036 the week of June 2. On May 21, 2008, Senator Boxer announced a proposed substitute amendment to the Lieberman-Warner bill.4 This amendment would make significant changes to the bill. For a detailed discussion of key terms and concepts used in this report, see CRS Report RL34489, Climate Change: Costs and Benefits of S. 2191, which provides background and much more detailed analysis of the bill. CRS has identified five key changes that would be made by the Boxer Amendment. These five do not represent all changes in the amendment. Considering the time constraints these five are discussed in this report; other changes may also be of interest in the debate. The five key changes discussed below are: 1 Originally entitled America's Climate Security Act of 2007. 2 For more a more detailed discussion of S. 2191 (as reported) provisions, see CRS Report RL34489, Climate Change: Costs and Benefits of S. 2191, by Larry Parker and Brent Yacobucci. For a comparison with other proposals, see CRS Report RL33846, Greenhouse Gas Reduction: Cap-and-Trade Bills in the 110th Congress, by Larry Parker and Brent Yacobucci. 3 Submitted to CBO April 9, 2008. CBO, S. 2191, America's Climate Security Act, with an Amendment (April 10, 2008). 4 As of May 23, 2008, the substitute amendment was available at the EPW website: [http://epw.senate.gov/public/]. CRS-2 ! The establishment of a "cost-containment auction" that would expand the number of allowances available in early years; ! Changes to the limits and applicability of domestic offsets, international offsets, and international allowances; ! Elimination of the Climate Change Credit Corporation and the establishment of a Climate Change Technology Board; ! Major changes in the scheme for how allowances are auctioned or distributed at no cost to covered entities and non-covered entities; and ! Establishment of carbon market oversight mechanisms. Cost-Containment Auction. The Boxer Amendment would establish a "cost-containment auction." For this auction, the amendment would take a share of allowances from 2031 through 2050 and make them available for auction in the early years of the program (2012 through 2027). At the end of 2012, a maximum of 450 million allowances would be available for sale. In each successive year, the number available would be reduced by 1%. In total, up to 6 billion allowances would be available through these cost-containment auctions. For the auctions, the amendment would establish a "Cost-Containment Auction Price" -- effectively a reserve price for the auction. For 2012, the President would determine the initial reserve price of between $22 and $30 per ton. In each successive year, the reserve price would increase by the rate of inflation plus 5%. This provision would essentially allow the borrowing of a limited number of future allowances at a reduced rate. In general, both the bill and the Boxer Amendment allow borrowing, but require a 10% annual rate of interest on borrowed allowances. Assuming the allowance price for a given year is above the "cost- containment price," participants in the auction will likely bid up the price to something similar to the current allowance price. On the other hand, if the allowance price on the secondary market is below the "cost-containment price," there may be limited participation in the cost-containment auction. All other things being equal, having a larger pool of allowances early should lower the price of allowances, but it is difficult to predict the magnitude of that price effect. Use of Domestic Offsets, International Offsets, and International Allowances. The Boxer Amendment would substantially alter the amount and type of offsets that covered sources could use to comply with the emissions cap. Under the reported version of the bill, a covered entity could only use domestic offsets and/or international allowances. The Boxer Amendment expands the offset opportunities to include international offsets and international forest credits. In the reported version of the bill, an individual covered entity could meet up to 15% of its allowance requirement through the use of domestic offsets and an additional 15% through the use of international allowances. The Boxer Amendment would eliminate the facility-specific limitation and would direct EPA to restrict the available pool of domestic offsets to 15%, international offsets to 5%, and international forest credits to 10% of the aggregate quantity of emission allowances distributed under the cap. CRS-3 International allowances could be used, if any of the above percentages were not maximized.5 Although the Boxer Amendment would increase flexibility by removing the facility-specific limitation for offset use, the amendment would effectively reduce the total number of offsets potentially available in a given year. The example below illustrates this substantial change: In 2012, both S. 2191 and the Boxer Amendment set the number of allowances available to covered entities at 5,775 million allowances. In the reported version, a covered facility must submit to EPA an allowance, offset, or international allowance for each ton of actual emissions. By allowing facilities to submit offsets and/or international allowances to satisfy up to 30% of their allowance submission (15% from domestic offsets and 15% from international allowances), the total allowance cap (5,775) would essentially represent 70% of actual emissions permitted. For instance, if there was only one covered facility in the United States and it emitted 8,250 million tons of CO2-e in 2012, the facility could submit 5,775 million allowances and 2,475 million tons in offsets and international allowances.6 However, under the Boxer Amendment, the total number of offsets -- which would include domestic, international, forestry credits, and international allowances -- would be limited to 30% of the aggregate pool of allowances distributed under the cap. Therefore, the hypothetical facility described above could only use 1,733 tons in offsets.7 In addition, eliminating restrictions on the use of certified offsets, the expansion of allowable offset types -- international offsets and forest credits -- may lower the costs of the cap-and-trade program. Under the reported bill, covered entities had only indirect access (by purchasing international allowances) to these lower-cost reduction opportunities. The Boxer Amendment permits direct use of these options. However, there may be some concern that the increased use of international offsets, particularly those in the forestry sector, could flood the market with possibly questionable emission reductions.8 Changes in Established Entities. The reported version of S. 2191 would establish a Climate Change Credit Corporation to auction allowances under the program. The corporation would use the proceeds from those auctions to fund various purposes, including technology development and adaptation programs. As reported, S. 2191 states that "the Corporation shall not be considered an agency or establishment of the Federal government." The Boxer Amendment would eliminate 5 An international allowance is an allowance purchased from an approved foreign cap and trade system. In lieu of using or trading the allowance within its own system, a foreign firm could choose to sell the allowance to a U.S. firm, who could use the allowance for compliance with the U.S. program in lieu of an allowance allocated domestically. 6 8,250 x 0.3 = 2,475. 7 5,775 x 0.3 = 1,733 8 See CRS Report RL34436, The Role of Offsets in a Greenhouse Gas Emissions Cap-and-Trade Program: Potential Benefits and Concerns, by Jonathan L. Ramseur. CRS-4 the corporation. Instead, allowances would be auctioned by EPA. The funds from those auctions would be disbursed by a Climate Change Technology Board, explicitly established as an agency of the federal government. Allocation Scheme. Both S. 2191 and the Boxer Amendment use a detailed scheme for allocating allowances to covered entities, non-covered entities, and auctions. The total number of allowances for all years is equal in S. 2191 and the Boxer Amendment, although the timing of those allocations may be different, as the Boxer Amendment allows for the auction of some allowances early (see "Cost- Containment Auction" above). Further, the reported bill and the Boxer Amendment would distribute those allowances differently. In all years, relative to the reported version, the Boxer Amendment would allocate a larger share of allowances to non- covered entities (e.g., states), and a smaller share for covered entities and for auctions. For example, in 2012, the reported version of S. 2191 would allocate roughly 36% of allowances to covered entities, 33% to non-covered entities, and 31% for auctions. Under the Boxer Amendment, assuming all available cost-containment allowances are purchased, 32% of allowances would go to covered entities, 34% to non-covered entities, and 30% would be auctioned. Table 1 shows allowance allocations in various years for the reported version of S. 2191, as amended by the proposed deficit reduction amendment (identical to the introduced version of S. 3036), and Table 2 shows the allocation of auction revenues. Tables 3 and 4 show allowance allocations in the same years under the Boxer Amendment. For each table, direct allocations to covered sectors are labeled "COV," direct allocations to non- covered entities are labeled "NC," and auctions are labeled "AUC."9 Various groups have modeled the economic effects of S. 2191, including projections of allowance prices in each year of the program. Using one of the low- cost scenarios -- EPA's ADAGE-TECH scenario -- estimates of the values of the allowance allocations and auction revenues in S. 2191 and the Boxer Amendment are shown in Tables 5 and 6.10 The same allowance price was used in both tables; however, it should be noted that some of the changes made by the Boxer Amendment would likely reduce costs.11 To the extent that allowance prices increase or decrease in one version of the bill relative to another, the value of allocations and the estimated auction revenues would also increase or decrease. Carbon Market Oversight Mechanisms. The Boxer Amendment would establish a Carbon Markets Working Group including the EPA Administrator, the Secretary of the Treasury, and the Chairmen of the Securities and Exchange Commission, the Commodities Futures Trading Commission, and the Federal Energy Regulatory Commission. The Group must identify "the major issues related to the integrity, efficiency, orderliness, fairness, and competitiveness" of the carbon market, 9 In each of the tables, the allocations are presented in the section-by-section order they appear in the bill or amendment. 10 For a detailed analysis of the assumptions used in EPA's model, as well as CRS's assumptions about certain program costs, see CRS Report RL34489, Climate Change: Costs and Benefits of S. 2191, by Larry Parker and Brent Yacobucci. 11 The economic effects of the Boxer Amendment had not been modeled as of May 28, 2008. CRS-5 as well as recommendations for market regulation, policy coordination, contingency planning, and necessary legislative action.12 12 For more information on carbon market regulation, see CRS Report RL34488, Regulating a Carbon Market: Issues Raised By the European Carbon and U.S. Sulfur Dioxide Allowance Markets, by Mark Jickling and Larry Parker. CRS-6 Table 1. Estimated Allowances (millions) Allocated Under S. 3036 (S. 2191 as Reported plus Amendment) 2012 2020 2030 2040 2050 Total Allowances Sec. 3101 (as amended) 5,775 4,924 3,860 2,796 1,732 Remainder Allowances Sec. 1201 5,423 4,510 3,303 2,349 1,455 Deficit Reduction Fund AUC Sec. 3101 (as amended) 352 414 557 447 277 Early Auction AUC Sec. 3101 271 0 0 0 0 Auction AUC Sec. 3102 1,166 1,646 2,073 1,632 1,011 Early Action NC Sec. 3201 271 0 0 0 0 States Energy Savings NC Sec. 3301(a) 108 90 66 47 29 Building Efficiency NC Sec. 3301(b) 54 45 33 23 15 Programs that Exceed Fed. Targets NC Sec. 3302 108 90 66 47 29 General Allocation - by LIHEAP Share NC Sec. 3303(b)(1) 81 68 50 35 22 General Allocation - by Population Share NC Sec. 3303(b)(2) 81 68 50 35 22 General Allocation - by Fossil Production CO2 NC Sec. 3303(b)(3) 81 68 50 35 22 Mass Transit NC Sec. 3304 54 45 33 23 15 State Subtotal 569 474 347 247 153 Tribal Communities NC Sec. 3303(d) 27 23 17 12 7 Low/Middle-Class Electricity Consumers NC Sec. 3401 488 406 297 211 131 Low/Middle-Class Natural Gas Consumers NC Sec. 3501 108 90 66 47 29 CCS Bonus Allowances COV Sec. 3601 217 180 132 0 0 Domestic Agriculture and Forestry NC Sec. 3701 271 226 165 117 73 International Forest Protection NC Sec. 3803 136 113 83 59 36 Fossil Fueled Electric Plants COV Sec. 3901 1,030 722 33 0 0 Rural Electric Cooperatives COV Sec. 3901 54 45 33 0 0 Special Allocation to VA and MT COV Sec. 3903(a)(2) 8 7 0 0 0 Energy-Intensive Manufacturing Facilities COV Sec. 3901 542 361 8 0 0 Petroleum Production/Import Facilities COV Sec. 3901 108 90 8 0 0 HFC Producers/Importers COV Sec. 3901 108 90 8 0 0 Landfill and Coal Mine Methane Reduction NC Sec. 3907 54 45 33 23 15 Source: CRS Analysis of S. 2191 as reported by the Senate Committee on Environment and Public Works and as amended by proposed revenue-neutral amendment. CRS-7 Table 2. Allocation of Revenues from Auctions of Remainder Allowances Under S. 3036 (percentage of "remainder allowance" auction revenues after "Off-the-Top"a [designated "ss"] distributions are made) 2012 2020 2030 2040 2050 Off-the-Top Allocation of Auction Proceeds BLM Emergency Firefighting Fund Sec. 4302(b)(1) ss ss ss ss ss Forest Service Emergency Firefighting Fund Sec. 4302(b)(2) ss ss ss ss ss CSA Management Fund Sec. 4302(b)(3) ss ss ss ss ss Percentage of Remaining Proceeds Technology Deployment Sec. 4302(b)(4)(B) 52% 52% 52% 52% 52% Zero- or Low- Carbon Energy Technology Sec. 4401(1) 16.6% 16.6% 16.6% 16.6% 16.6% Advanced Coal and Sequestration Technology Sec. 4401(2) 13.0% 13.0% 13.0% 13.0% 13.0% Fuel from Cellulosic Biomass Sec. 4401(3) 3.1% 3.1% 3.1% 3.1% 3.1% Advanced Technology Vehicles Manufacturing Incentives Sec. 4401(4) 6.2% 6.2% 6.2% 6.2% 6.2% Sustainable Energy Program Sec. 4401(5) 13.0% 13.0% 13.0% 13.0% 13.0% Energy Independence Acceleration Fund Sec. 4302(b)(4)(C) 2% 2% 2% 2% 2% Energy Assistance Fund Sec. 4302(b)(4)(D) 18% 18% 18% 18% 18% LIHEAP Sec. 4501(1) 9.0% 9.0% 9.0% 9.0% 9.0% Weatherization Sec. 4501(2) 4.5% 4.5% 4.5% 4.5% 4.5% Rural Energy Assistance Sec. 4501(2) 4.5% 4.5% 4.5% 4.5% 4.5% Climate Change Worker Training Fund Sec. 4302(b)(4)(E) 5% 5% 5% 5% 5% DOE University Programs Sec. 4606(a) 1.25% 1.25% 1.25% 1.25% 1.25% Adaptation Fund Sec. 4302(b)(4)(F) 18% 18% 18% 18% 18% DOI - Wildlife Conservation and Restoration Sec. 4702(b)(1) 6.3% 6.3% 6.3% 6.3% 6.3% DOI - Adaptation Activities Sec. 4702(b)(2) 3.42% 3.42% 3.42% 3.42% 3.42% DOI - Cooperative Grant Programs Sec. 4702(b)(3) 0.9% 0.9% 0.9% 0.9% 0.9% DOI - Tribal Wildlife Grants Sec. 4702(b)(4) 0.2% 0.2% 0.2% 0.2% 0.2% Land and Water Conservation Fund Sec. 4702(c) 1.8% 1.8% 1.8% 1.8% 1.8% Forest Service Adaptation Activities Sec. 4702(d) 0.9% 0.9% 0.9% 0.9% 0.9% EPA Adaptation Activities Sec. 4702(e) 0.9% 0.9% 0.9% 0.9% 0.9% Army Corps of Engineers Adaptation Activities Sec. 4702(f) 1.8% 1.8% 1.8% 1.8% 1.8% Department of Commerce Adaptation Activities Sec. 4702(g) 1.8% 1.8% 1.8% 1.8% 1.8% Climate Change and National Security Fund Sec. 4302(b)(4)(G) 5% 5% 5% 5% 5% Source: CRS Analysis of S. 2191 as reported by the Senate Committee on Environment and Public Works and as amended by proposed revenue-neutral amendment. a. Auction revenues must first be allocated to these accounts. However, necessary amounts are not specified in the bill, as they depend on a given year's expenditures from that account. For a more detailed discussion, see CRS Report RL34489, Climate Change: Costs and Benefits of S. 2191. CRS-8 Table 3. Estimated Allowances Allocated Under Boxer Amendment, Part I (millions) Year Section 2012 2020 2030 2040 2050 Total Allowances (millions) Sec. 201 5,775 4,924 3,860 2,796 1,732 Cost Containment Pool Sec. 535 6,000 2,524 0 0 0 Cost Containment Allowances Auctioned Sec. 536 450 415 0 0 0 Cost Containment Allowances Borrowed Sec. 535 0 0 0 295 395 Remaining Allowances 5,775 4,924 3,860 2,501 1,337 Total Available Allowances 6,225 5,339 3,860 2,501 1,337 Allowance Accounts Agriculture and Forestry Program NC Sec. 331 245 209 164 113 60 New Technology Incubator Sec. 332(b) 14 12 10 6 3 Transition Assistance for Workers AUC Sec. 542(b) 58 98 116 75 40 Transition Assistance for Carbon-Intensive Manufacturers COV Sec. 551(b) 635 542 39 0 0 Currently Operating Facilities COV Sec. 552(b) 610 520 37 0 0 New Entrant Facilities COV Sec. 522(f) 25 22 2 0 0 Petroleum Refiners (Discretionary) COV Sec. 522(h) 64 54 4 0 0 Transition Assistance for Fossil Fuel Electric Generators COV Sec. 561(b) 1,040 739 106 0 0 Rural Electric Cooperatives (Maximum) COV Sec. 562(c) 52 37 5 0 0 Pilot Program for MT and VA COV Sec. 562(c)(2)(a) 8 6 1 0 0 Transition Assistance for Petroleum Fuel Refiners COV Sec. 571 116 49 39 0 0 Transition Assistance for Natural Gas Processors COV Sec. 581 43 37 29 0 0 Federal Program for Consumers AUC Sec. 592(b) 202 295 463 375 201 Partnerships with State Governments Customer Assitance Through LDCs Electricity NC Sec. 611(a) 549 480 386 250 134 Natural Gas NC Sec. 611(a) 188 160 135 88 47 Assistance to States with Heavy Reliance on Manuf. and Coal NC Sec. 612(a) 173 160 135 100 53 Manufacturing NC Sec. 612(b) 87 80 68 50 27 Coal NC Source: CRS Analysis of proposed Boxer Amendment. CRS-9 Table 4. Estimated Allowances Allocated Under Boxer Amendment, Part II (millions) Year Section 2012 2020 2030 2040 2050 Partnerships with States, Tribes, and Localities to Reduce Emissions Transportation Sector AUC Sec. 621(c) 58 98 106 69 37 Efficiency and Conservation Block Grant Program AUC Sec. 624(a) 116 98 77 50 27 States that Have Led in Reducing Emissions NC Sec. 625(a) 231 246 309 250 134 Partnerships with States and Tribes to Adapt to Climate Change Sec. 631(b) 173 160 135 100 53 Coastal States NC Sec. 632(b) 69 64 54 40 21 Freshwater and Agriculture NC Sec. 633(a) 43 40 34 25 13 Alaska NC Sec. 634(a) 35 32 27 20 11 Indian Tribes AUC Sec. 635(d) 26 24 20 15 8 Partnerships with States, Tribles, and Localities to Protect Nat. Resources AUC Sec. 642(b) 116 98 154 100 53 (Wildlife Adaptation) Early Action Program NC Sec. 702 289 49 0 0 0 Efficient Buildings NC Sec. 811 43 37 29 19 10 Efficient Equipment and Appliances (SEAD Program) NC Sec. 821 43 37 29 19 10 Efficient Manufacturing NC Sec. 831 43 37 29 19 10 Renewable Energy NC Sec. 841 231 197 154 25 13 Low- and Zero-Carbon Electricity Technology AUC Sec. 913 101 86 77 25 13 Advanced Research (ARPA-E) AUC Sec. 921 14 12 10 6 3 Carbon Capture and Sequestration (CCS) Technolgy Fund AUC Sec. 1012 58 49 0 0 0 CCS Bonus Allowances COV Sec. 1021 173 148 154 25 13 Clean Medium- and Heavy-Duty Hybrid Fleets NC Sec. 1112 29 0 0 0 0 Advanced Vehicle Manufacturers AUC Sec. 1122 58 49 39 25 13 Cellulosic Biofuel NC Sec. 1131 58 49 39 0 0 Federal Program to Protect Nat. Res. (Firefighting and Wildlife Adapt.) AUC Sec. 1212(b) 173 123 154 125 67 International Forestry NC Sec. 1323 58 49 39 25 13 International Technology Deployment AUC Sec.1334 29 0 0 0 0 International Adaptation AUC Sec. 1342(b) 58 98 154 175 94 Deficit Reduction Fund AUC Sec. 1402(b) 332 394 531 419 224 Climate Security Act Administrative Fund AUC Sec. 1712 43 37 39 25 13 Source: CRS Analysis of proposed Boxer Amendment. CRS-10 Table 5. Estimated Allowance Values and Auction Revenues Under S. 3036 (million 2005$) Year 2012 2020 2030 2040 2050 Total Allowances (millions) 5775 4924 3860 2796 1732 Allowance Price (2005$/ton) $18.54 $28.30 $46.00 $74.60 $120.80 Deficit Reduction Fund $6,531 $11,705 $25,622 $33,352 $33,455 Early Auction $5,027 $0 $0 $0 $0 Auction $21,616 $46,590 $95,341 $121,784 $122,160 Early Action $5,027 $0 $0 $0 $0 States Energy Savings $2,011 $2,553 $3,039 $3,505 $3,515 Building Efficiency $1,005 $1,276 $1,519 $1,752 $1,758 Programs that Exceed Fed. Targets $2,011 $2,553 $3,039 $3,505 $3,515 General Allocation - by LIHEAP Share $1,508 $1,915 $2,279 $2,628 $2,637 General Allocation - by Population Share $1,508 $1,915 $2,279 $2,628 $2,637 General Allocation - by Fossil Production $1,508 $1,915 $2,279 $2,628 $2,637 CO2 Share Mass Transit $1,005 $1,276 $1,519 $1,752 $1,758 State Subtotal $10,556 $13,403 $15,953 $18,399 $18,456 Tribal Communities $503 $638 $760 $876 $879 Low/Middle-Class Electricity Consumers $9,048 $11,488 $13,674 $15,771 $15,819 Low/Middle-Class Natural Gas Consumers $2,011 $2,553 $3,039 $3,505 $3,515 CCS Bonus Allowances $4,021 $5,106 $6,078 $0 $0 Domestic Agriculture and Forestry $5,027 $6,382 $7,597 $8,761 $8,789 International Forest Protection $2,513 $3,191 $3,798 $4,381 $4,394 Transition Assistance Fossil Fueled Electric Plants $19,102 $20,423 $1,519 $0 $0 Rural Electric Cooperatives $1,005 $1,276 $1,519 $0 $0 Pilot Projects in VA and MT $151 $191 $0 $0 $0 Energy-Intensive Manufacturing Facilities $10,054 $10,212 $380 $0 $0 Petroleum Production/Import Facilities $2,011 $2,553 $380 $0 $0 HFC Producers/Importers $2,011 $2,553 $380 $0 $0 Landfill and Coal Mine Methane Reduction $1,005 $1,276 $1,519 $1,752 $1,758 BLM Emergency Firefighting Fund $150 $150 $150 $150 $150 Forest Service Emergency Firefighting Fund $430 $430 $430 $430 $430 CSA Management Fund $1,071 $1,393 $1,776 $2,086 $2,092 Technology Deployment $10,382 $23,201 $48,352 $61,942 $62,134 Zero- or Low- Carbon Energy Technology $3,322 $7,424 $15,473 $19,821 $19,883 Advanced Coal and Sequestration Technology $2,595 $5,800 $12,088 $15,485 $15,533 Fuel from Cellulosic Biomass $623 $1,392 $2,901 $3,717 $3,728 Adv. Tech. Vehicles Manufacturing Incentives $1,246 $2,784 $5,802 $7,433 $7,456 Sustainable Energy Program $2,595 $5,800 $12,088 $15,485 $15,533 Energy Independence Acceleration Fund $399 $892 $1,860 $2,382 $2,390 Energy Assistance Fund $3,594 $8,031 $16,737 $21,441 $21,508 LIHEAP $1,797 $4,015 $8,369 $10,721 $10,754 Weatherization $898 $2,008 $4,184 $5,360 $5,377 Rural Energy Assistance $898 $2,008 $4,184 $5,360 $5,377 Climate Change Worker Training Fund $998 $2,231 $4,649 $5,956 $5,974 Adaptation Fund $3,594 $8,031 $16,737 $21,441 $21,508 Climate Change and National Security Fund $998 $2,231 $4,649 $5,956 $5,974 Source: CRS Analysis of S. 3036. CRS-11 Table 6. Estimated Allowance Values and Auction Revenues Under Boxer Amendment (million 2005$) Year 2012 2020 2030 2040 2050 Total Allowances (millions) 5775 4924 3860 2796 1732 Allowance Price (2005$) $18.54 $28.30 $46.00 $74.60 $120.80 Agriculture and Forestry Program $4,550 $5,922 $7,546 $8,396 $7,268 New Technology Incubator $268 $348 $444 $466 $404 Transition Assistance for Workers $1,071 $2,787 $5,327 $5,597 $4,845 Transition Assistance for Carbon-Intensive Manufacturers $11,778 $15,328 $1,776 $0 $0 Currently Operating Facilities $11,306 $14,715 $1,705 $0 $0 New Entrant Facilities $471 $613 $71 $0 $0 Petroleum Refiners (Discretionary) $1,178 $1,533 $178 $0 $0 Transition Assistance for Fossil Fuel Electric Generators $19,272 $20,902 $4,883 $0 $0 Rural Electric Cooperatives (Maximum) $964 $1,045 $244 $0 $0 Pilot Program for MT and VA $145 $157 $37 $0 $0 Transition Assistance for Petroleum Fuel Refiners $2,141 $1,393 $1,776 $0 $0 Transition Assistance for Natural Gas Processors $803 $1,045 $1,332 $0 $0 Federal Program for Consumers $3,747 $8,361 $21,307 $27,986 $24,226 Partnerships with State Governments Electricity LDCs $10,172 $13,587 $17,756 $18,657 $16,151 Natural Gas LDCs $3,480 $4,529 $6,215 $6,530 $5,653 Assistance to States with Manuf. and Coal $3,212 $4,529 $6,215 $7,463 $6,460 Partnerships with States, Tribes, and Localities Transportation Sector $1,071 $2,787 $4,883 $5,131 $4,442 Efficiency and Conservation Block Grant Program $2,141 $2,787 $3,551 $3,731 $3,230 States that Have Led in Reducing Emissions $4,283 $6,967 $14,205 $18,657 $16,151 Partnerships with States and Tribes to Adapt to Climate $3,212 $4,529 $6,215 $7,463 $6,460 Change Coastal States $1,285 $1,812 $2,486 $2,985 $2,584 Freshwater and Agriculture $803 $1,132 $1,554 $1,866 $1,615 Alaska $642 $906 $1,243 $1,493 $1,292 Indian Tribes $482 $679 $932 $1,119 $969 Partnerships with States, Tribles, and Localities - Wildlife $2,141 $2,787 $7,102 $7,463 $6,460 Early Action Program $5,353 $1,393 $0 $0 $0 Efficient Buildings $803 $1,045 $1,332 $1,399 $1,211 Efficient Equipment and Appliances (SEAD Program) $803 $1,045 $1,332 $1,399 $1,211 Efficient Manufacturing $803 $1,045 $1,332 $1,399 $1,211 Renewable Energy $4,283 $5,574 $7,102 $1,866 $1,615 Low- and Zero-Carbon Electricity Technology $1,874 $2,439 $3,551 $1,866 $1,615 Advanced Research (ARPA-E) $268 $348 $444 $466 $404 Carbon Capture and Sequestration (CCS) Technolgy Fund $1,071 $1,393 $0 $0 $0 CCS Bonus Allowances $3,212 $4,180 $7,102 $1,866 $1,615 Clean Medium- and Heavy-Duty Hybrid Fleets $535 $0 $0 $0 $0 Advanced Vehicle Manufacturers $1,071 $1,393 $1,776 $1,866 $1,615 Cellulosic Biofuel $1,071 $1,393 $1,776 $0 $0 Federal Program on Firefighting and Wildlife Adaptation $3,212 $3,484 $7,102 $9,329 $8,075 International Forestry $1,071 $1,393 $1,776 $1,866 $1,615 International Technology Deployment $535 $0 $0 $0 $0 International Adaptation $1,071 $2,787 $7,102 $13,060 $11,306 Deficit Reduction Fund $6,156 $11,148 $24,415 $31,251 $27,053 Climate Security Act Administrative Fund $803 $1,045 $1,776 $1,866 $1,615 Source: CRS Analysis of proposed Boxer Amendment ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34515