Topic: us policy

As different statewide greenhouse gas (GHG) reduction policies continue to emerge in the United States, more and more businesses are calling on the federal government to enact a single, uniform policy. The prospect of complementary policies between different levels of government—as well as the potential for conflicting and even duplicative regulations—could have significant implications for business. This installment of WRI’s “Bottom Line” series explores the fundamental debates about, and potential outcomes of, different degrees of state and federal policy action.

Climate policy debates often feature discussions about the role of a carbon tax, either as an alternative or a supplement to a cap-and-trade program. This fact sheet describes the similarities and differences between the two policy approaches and answers other common questions about a tax on carbon.

Cap-and-trade programs are the foundation of many climate policy proposals and have been a focus of debate in state, regional, and national legislatures. This fact sheet provides answers to some of the basic questions about cap-and-trade programs and reviews how such a system might work in the United States.

This is a summary of S.2191 Manager’s substitute amendment released on May 21, 2008. The substitute reflects a substantially revised version of S.2191. This summary is not exhaustive but does cover nearly all sections of the bill. It is divided into relevant cap and trade design element categories with references to appropriate sections.

• Caps, Coverage and Compliance
• Market Oversight and Structure
• Cost Containment
• Allowance Value Distribution
• International Engagement and Competitiveness
• State and Regional Programs
• Complementary Policies
• Appendix: Allowance Distribution Table