Clean Energy Jobs and American Power Act

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The Clean Energy Jobs and American Power Act (S.1733, “Kerry-Boxer”) sets goals of reducing U.S. GHG emissions 20% below 2005 levels by 2020 and 83% below 2005 levels by 2050.  It creates a nationwide cap-and-trade program on GHGs, as well as a variety of transition and adaptation programs. It also creates programs to reduce GHG emissions from the transportation sector, and to promote nuclear power and carbon capture and storage technologies.  The bill does not include a renewable electricity standard, transmission planning, or other energy provisions contained in S.1462, the American Clean Energy Leadership Act, reported by the Senate Energy and Natural Resources Committee in July 2009.

Of particular interest to states:

Preemption.

• If a federal allowance auction program begins promptly, then state cap-and-trade programs are preempted for the years 2012-2017. However, unlike H.R.2454, if no federal auction has been conducted by March 31, 2011, then preemption begins nine months after the first auction, and lasts until the end of 2017. Other state or regional energy and greenhouse gas programs are not affected.
• Unlike H.R.2454, the Act does not prevent the U.S. EPA from requiring performance standards on stationary sources under the federal cap, but EPA may not enact new-source performance standards on sources of uncapped GHGs that could qualify as an offset project until Jan. 1, 2020.

Allocation to states. While allocation levels are not specified in this draft, states will receive allowances and auction revenue to protect consumers from home heating oil and propane price increases, to invest in renewable energy and energy efficiency, to increase energy efficiency in buildings.

Treatment of state/regional allowances. Holders of allowances issued by California, the Regional Greenhouse Gas Initiative (RGGI) or the Western Climate Initiative (WCI) may exchange these for federal allowances, although not necessarily at a one-for-one ratio.

Transportation Efficiency. The Act requires states and metropolitan planning organizations (MPOs) to create detailed strategies "likely to achieve" transportation-related targets, and requires states to consider specified transportation-related emissions strategies. The bill also creates a transportation efficiency grant program eligible to receive allowance funding.

Renewable Energy. Kerry-Boxer creates a grant program for renewable energy projects in states with a renewable portfolio standard (RPS) or goal.

Adaptation. Kerry-Boxer creates a number of new programs and funding to help states manage issues relating to water systems, flood control, and wildfires, with specific funding available to coastal and Great Lakes states, as well as to support drinking water utilities. Additionally, the bill maintains cost-share funds for state natural resources adaptation efforts, contingent upon state natural resources adaptation plans, and support for state public health planning and preparedness efforts.

 

Introduced: September 30, 2009

Website: http://www.gpo.gov/fdsys/pkg/BILLS-111s1733rs/pdf/BILLS-111s1733rs.pdf