H.R.2177 - Tradeable Energy Performance Standards Act (119th Congress)
Summary
H.R.2177, the Tradeable Energy Performance Standards Act, aims to amend the Clean Air Act by establishing a tradeable energy performance standard for large electricity generators and thermal energy users. The bill introduces a system of emission allowances, requiring covered facilities to submit allowances for each metric ton of carbon dioxide released. It also establishes an offset program funded by alternative compliance payments and civil penalties to support activities that reduce greenhouse gas emissions or sequester carbon dioxide.
Expected Effects
The act would likely lead to a reduction in carbon dioxide emissions from large electricity generators and thermal energy users through a cap-and-trade system. This system incentivizes facilities to reduce emissions by either improving efficiency, purchasing allowances, or investing in carbon offset projects. The establishment of a carbon mitigation fund could spur investment in green technologies and infrastructure.
Potential Benefits
- Reduced carbon dioxide emissions from large facilities.
- Incentives for energy efficiency improvements and adoption of low-emission technologies.
- Creation of a market for emission allowances, potentially driving innovation.
- Funding for carbon offset projects through the Carbon Mitigation Fund.
- Potential for job creation in the renewable energy and energy efficiency sectors.
Potential Disadvantages
- Increased costs for covered facilities, potentially leading to higher energy prices for consumers.
- Complexity in the emission allowance tracking and trading system.
- Potential for market manipulation in the emission allowance market.
- Uncertainty regarding the effectiveness of carbon offset projects.
- Administrative burden on the EPA to implement and oversee the program.
Constitutional Alignment
The bill aligns with the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate interstate commerce, including activities that affect the environment and the economy. The establishment of environmental regulations and a trading system falls under this power. The bill also relates to the General Welfare Clause, as it aims to promote the well-being of the population by addressing climate change.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).