Kerry-Lieberman: the contents

According to its authors, the American Power Act will transform U.S. economy, set the country on the path toward energy independence and improve air quality. In addition, it will create millions of new jobs and it will launch U.S. into a position of leadership in the global clean energy economy.
The following sections describe how the new bill will seek to achieve these objectives.

Overall structure:
create a cap-and-trade system for the electricity sector in 2013 initially, with the industrial sector phased in 2016, with linked refinery cap, plus consumer rebates, support for state-level renewable electricity and energy efficiency standards as well as energy investments.

Coverage:
sources of pollution that produce more than 25,000 tons of emission annually, namely 7,500 factories and power plants.
Emission targets:
• 17% below 2005 by 2020;
• 83% below 2005 by 2050.
Permit allocation:
allocations based on historical emissions, early action, and energy production with 25% auction at start phasing to 100% auction by 2035.
Carbon price predictability:
introductory floor and ceiling prices are set at $12 (increasing at 3% over inflation annually) and $25 (increasing at 5% over inflation annually), respectively, plus permit reserve auction.
Offset provisions:
largely similar to those in Waxman-Markey bill. It allows for the use of 2 billion tons GHG emissions of qualified offsets each year, including up to 25% (500 million) from international projects, plus an additional 1 billion tons GHG emissions from international sources to reach the total of 2 billion tons annually.
Green economy investment:
$70 billion for clean and natural gas transportation over ten years. Extensive support for nuclear through accelerated depreciation for nuclear plants, a new investment tax credit to promote the construction of new generating facilities, $54 billion in loan guarantees and a manufacturing tax credit to spur the domestic production of nuclear parts. Support for renewable energy technology, advanced vehicle technologies. $ 2 billion per year as annual incentives for researching and developing effective carbon capture and sequestration methods and devices.
Consumer protection:
revenues dedicated to consumer protection through rebates and energy bill discounts;
assistance to Americans disproportionately affected by potential increases in energy prices; universal rebate checks from 75% of auction revenues starting in 2026 .