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Climate Policy Survey

National Climate Change Legislation
Stakeholder Comment Form

U.S. Representative Paul D. Tonko,
New York 20th Congressional District

As Ranking Member of the House Energy and Commerce Committee Subcommittee on Environment, Congressman Paul Tonko is working to develop sweeping federal climate legislation that builds on everything that has happened since the House passed the American Clean Energy and Security (ACES) Act, commonly known as Waxman-Markey, including lessons learned from the Clean Power Plan and numerous actions taken by states. In an effort to encourage candid responses, we will not be releasing comments publicly. However, they may be summarized with no specific attribution if the submitter wishes to remain anonymous.

We are specifically interested in feedback on climate solutions to reduce greenhouse gas (GHG) emissions based on the principles of environmental effectiveness, cost effectiveness, fairness, transparency, and simplicity. We welcome thoughts on any issue related to designing a cost-effective, market-based cap and trade program to reduce greenhouse gas emissions, but we specifically ask for views on the topics listed below.

If you are interested in providing additional comments, please email responses along with any other information or white papers that may be useful to climate@mail.house.gov by February 28, 2018.

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1. Covered entities: What entities should be covered at at what thresholds?

2. Emissions Budget: What is an appropriate cap on emissions in the near-term (relative to the 2005 CO2e baseline)? How much should it decrease over time and how quickly? Should there be a single, federal emissions budget or individual state (or regional) budgets?

3. Compliance Periods: How long should compliance periods be? How regularly should info be submitted by covered entities? Are all relevant emissions data already submitted to EPA? If not, which additional data would be necessary?

4. Allowance Allocation: How should allowances be distributed? If not completely or primarily auctioned, how should any free allowances be distributed? Should any allowances be set aside for purchase outside of the auction for specific types of entities, such as small businesses?

5. Auction Rules: Should an auction include a reserve price? If so, what should it be and by how much should it increase over time? Should future vintages be sold at each auction? If so, how many future years? What should be done with unsold allowances?

6. Cost Controls:Should an auction include a strategic reserve or other set aside if a certain price is reached? Should that reserve come from existing allowances or outside the emissions budget?

7. Banking and Borrowing: What limitations should exist on the banking and borrowing of allowances?

8. Offsets: What types of offset activities should be allowable? What should be the limit on offsets during each compliance period?

9. Penalties: What is an appropriate penalty for noncompliance?

10. Emissions and Allowance Reporting and Monitoring: Please provide any thoughts on program requirements for registration, reporting, verification, trading, enforcement, or independent market monitoring.

11. Mitigating Leakage: What steps should be taken to prevent or limit emissions leakage? Should free allowances be provided to energy intensive trade-exposed industries or other specific industries to prevent leakage?

12. Protection for Low-Income Energy Consumers: What is the most effective method to offset increased energy costs for low-income consumers?

13. Revenues: How should revenues generated from an auction be used? (For example, mitigating energy costs for consumers, protecting jobs of workers at trade-vulnerable, energy intensive industries, a climate dividend for all Americans, R&D, ZEV deployment and electrification of the transportation sector, energy efficiency, just worker transition.) What are the best methods to return the revenue generated through auctions to the American people?

14. Low-Emissions Transitions: What complementary federal programs are most important to support the transition to a low-emissions economy? (For example, RES, investment in clean energy R&D, weatherization or other efficiency funding, flexible grants to states.)

15. State Programs: How should a federal cap and trade program interact with existing state and regional cap and trade programs? How can the federal program ensure that it will not disadvantage early actors?

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Please feel free to share this message with anyone that you think might be interested in participating in a meaningful and constructive dialogue on the future of our country’s climate policy. If you have any questions, please contact our office at 202-225-5076.

Sincerely,

Tonko Climate Team

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