Key Provisions for Climate Legislation 

Any climate change legislation should provide strong consumer-protection measures and protect the environment.

Congress is now considering federal legislation to reduce carbon dioxide (CO₂) and other greenhouse gas (GHG) emissions. On June 26, 2009, the U.S. House of Representatives passed H.R. 2454, The American Clean Energy and Security Act of 2009, which establishes a federal cap-and-trade program to reduce GHG emissions. On October 23, Senators John Kerry and Barbara Boxer introduced the Chairman's Mark of S. 1733, The Clean Energy Jobs and American Power Act. The Senate bill resembles the House bill in several ways, but key differences exist.

EEI has endorsed a climate change framework intended to help ensure that U.S. climate policy is successful in both reducing GHG emissions and addressing the cost concerns of consumers.

EEI member companies support enactment of legislation that reduces GHG emissions 80 percent below current emissions levels by 2050, while providing strong, effective consumer-protection measures to help reduce electricity price increases as we transition to a low-carbon future.

Consumer-protection provisions are essential to ensure broad, long-term public support for climate legislation.

• Allocate Emissions Allowances To Help Protect All Electricity Customers
  Allocating emissions allowances to the electric power sector will help to reduce price increases to all electricity customers—large and small, rural, urban, and suburban—without compromising environmental gains.  The vast majority of the power sector allowances should be allocated to local electric distribution companies, based on emissions and sales, on behalf of their customers.  Merchant coal generators also should receive some allowances to help mitigate price increases in wholesale electricity markets.
• Climate Change Legislation: A Price Collar Is Critical
  Including a "price collar" on emissions allowances will help to protect consumers and the economy from high prices, price volatility, and possible market manipulation.
• Climate Change Legislation: A Full Suite of Technologies Is Essential For Emissions Reductions
  Setting reasonable and achievable emissions reduction targets and timetables, which align GHG reductions with the widespread commercial availability of cleaner technologies, will allow electric utilities to make substantial long-term emissions reductions.
• Climate Change Legislation: Congress Should Allow the Widespread Use of Offsets for Emissions Reductions
  Allowing the wide and robust use of offsets, both domestically and internationally, will help to provide utilities with an important tool to meet emissions targets.

Additional Climate Policy Resources

• EEI Summary of S. 1733, Chairman's Mark of Kerry-Boxer Bill 
• EEI Summary of H.R. 2454 As Passed by the House of Representatives on June 26, 2009
• EEI President Tom Kuhn's letter to the U.S. Senate on climate change legislation
• EEI's Global Climate Change Points of Agreement
• Understanding EEI's Global Climate Change Points of Agreement
• Regulating Greenhouse Gases: A Single Federal Statute Should Fully Replace All Federal and State Regulations
• Strong Cost-Containment Measures Are Needed To Help Protect Electricity Consumers and the U.S. Economy
• Allocate Emissions Allowances To Help Protect All Electricity Customers
• Why Allocate Emissions Allowances? Auctioning Allowances Would Sharply Increase Costs to Customers.
• Why Allocate Emissions Allowances? Allocations Help Reduce Cost Increases to Electricity Customers of All Types While Maintaining The Environmental Benefit of Putting A Price On Carbon.
• H.R. 2454's Allowance Allocations Help To Reduce Cost Increases To All Electricity Customers
• Climate Change Legislation: A Price Collar Is Critical
• What Others Are Saying About the Need for a Price Collar in a GHG Cap-and-Trade System
• A Full Suite of Technologies Is Essential For Emissions Reductions
• EEI's Global Climate Change Principles
• Learn about China's greenhouse gas emissions.