Bill > HR2177

This bill establishes a comprehensive Tradeable Energy Performance Standards system to reduce carbon dioxide emissions from large electricity generators and thermal energy users. Beginning in 2028, the bill requires owners of covered facilities (including electric, thermal, and cogeneration facilities with significant energy production capacity) to submit emission allowances for each metric ton of carbon dioxide they release, with an initial baseline set in 2027 and a 5-10% reduction target each subsequent year. Facilities can acquire these allowances through initial distribution, purchasing, exchanging, or transferring them, and can alternatively make compliance payments if they cannot meet their allowance requirements. The bill creates an Offset Program funded by compliance payments and penalties, which will award grants for activities that avoid greenhouse gas emissions or permanently sequester carbon dioxide, such as improving energy efficiency, electrifying transportation, and installing electric vehicle charging stations. The Environmental Protection Agency will establish a tracking system to monitor emission allowance transactions and ensure market integrity, and the Comptroller General will provide biennial reports to Congress evaluating the program's effectiveness in reducing emissions, creating jobs, and driving innovation. The bill aims to create a market-based approach to gradually reduce carbon emissions while providing flexibility for regulated entities and supporting a transition to a zero-emission economy.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/2177/all-info