The following materials provide information about and analysis of the Clean Air Planning Act and other multi-pollutant power plant proposals.

EPA Analysis of the Lieberman-Warner Climate Security Act of 2008, March 14, 2008
This analysis used ten different scenarios to evaluate S.2191. The analysis found that many uncertainties could affect S.2191's economic impacts, particularly the availability of mitigation technologies and the level of international action on climate change.

Report available here
Summary available here

Assessing U.S. Climate Policy Options: A Report Summarizing Work at Resources For the Future as Part of the Inter-industry U.S. Climate Policy Forum
This report is the culmination of 15 issue briefs. The 15 briefs examine key policy concerns and questions related to greenhouse gas emissions, as well as legislative proposals to reduce such emissions.

Report available here

Senators Lieberman and Warner's Climate Change Proposal-A Windfall for Big Polluters?
A Report by Clean Air Watch, September 2007
This report asserts that the Lieberman-Warner bill will guarantee significant windfall profits for the top ten CO2 emitters through excessive allowance allocation to electric generators. Instead of such a provision, the report encourages Senators Lieberman and Warner to strike a better balance between the interests of consumers and big polluters to avoid massive windfalls. Additionally, the report promotes investment in clean technologies.

Report available here

Allocating Allowances in a Greenhouse Gas Trading System: A Staff White Paper from the National Commission on Energy Policy, March 1, 2007
A National Commission on Energy Policy White Paper that explains why allowance distribution should reflect the distribution of actual cost burdens under a greenhouse gas trading program. The paper concludes that no more than 50 percent of allowances should be distributed for free.

White Paper available for download here

Trade-Offs in Allocating Allowances for CO2 Emissions: A Briefing by the Congressional Budget Office, April 25, 2007
A briefing by the Congressional Budget Office (CBO) that examines the costs of allowance allocation and its impact to the U.S. economy, consumers, workers, and investors. The CBO found that the cost of meeting a cap would be borne by consumers, who would face higher electricity and gasoline prices. Additionally, the price increases would be regressive in that low-income consumers would bear a larger burden compared to wealthier households.

Breifing available for download here

Clean Energy Group Presentation on the Clean Air Planning Act of 2005 (H.R. 1873)
Presentation by Michael Bradley, Executive Director of the Clean Energy Group, on the Clean Air Planning Act of 2005 introduced in the U.S. House of Representatives by Congressmen Charles Bass (R-NH), Jim Davis (D-FL), Jim Cooper (D-TN), and Jeb Bradley (R-NH) on April 27, 2005.  The presentation provides an overview of the major provisions of the bill, including historic data, related regulatory programs, and information on other multi-pollutant legislation.

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Advantages of Output-based Allocation
These two documents highlight the benefits of output-based allocation. Allocating pollution allowances based on electric generation output represents a common sense approach to pollution reduction that provides incentives for the electric power industry to make investment decisions consistent with public expectations.  This means achieving improvements in air quality sooner, smarter, and more cost-effectively while ensuring electric supply reliability through a diversified generation fuel mix.

Download Advantages of Output-based Allocation (pdf)
Download Options for and Advantages of Output-based Allocation (pdf)

Clean Air Planning Act Overview Presentation
This overview presentation summarizes the key aspects of the Clean Air Planning Act, a bi-partisan four pollutant (4-P) legislative proposal introduced in both the House and Senate in 2003.

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Multi-Pollutant Power Plant Legislation and the Advantages of Output- vs. Input-Based Allocations
In designing a cap-and-trade regulatory program, a key decision is the methodology used for allocating or distributing emissions permits to affected sources.  This briefing discusses the advantages of an allocation methodology based on electric generation output versus fuel consumption (or heat input).

Download Briefing (pdf)

The Clean Air Planning Act: Common Questions and Answers
The Clean Air Planning Act of 2003 proposes to limit emissions of nitrogen oxides, sulfur dioxide, mercury, and carbon dioxide from power plants.  This Q&A document answers common questions about the Act.

Download Q&A (pdf)

Summary of Allowance Allocation Methodologies under the Clean Air Planning Act
All of the recent proposals for regulating power plant emissions recommend the use of cap-and-trade based regulatory programs.  However, the proposals vary in terms of the methodologies they propose for distributing or allocating allowances to affected facilities under a cap-and-trade program.  This table summarizes the methodology proposed by the Clean Air Planning Act.

Download Table (pdf)

Testimony of Conrad G. Schneider, Advocacy Director, Clean Air Task Force during Hearing on Need for Multi-Pollutant Legislation, January 26, 2005
Mr. Schneider testified on behalf of Clean Air Task Force, Clear the Air, National, Environmental Trust, and United States Public Interest Research Group before the Subcommittee on Clean Air, Climate Change, and Nuclear Safety.  His testimony includes a comparison of the costs and health impacts of the Clear Skies Act, the Clean Air Planning Act, and the Clean Power Act.

Download Testimony (pdf)
Link to EPW Subcommittee Hearing Statements

Letters Asking for Additional EPA Analysis

The first link is a copy of a letter sent from Senators Carper, Chafee, and Gregg to EPA Administrator Whitman on June 12, 2003 asking EPA to release its analysis of electric system reliability and of the costs and human health benefits associated with CAPA and Clear Skies.  The letter highlights some of the quantitative differences between the two bills.

The second link is a packet documenting Sen. Carper's communications with EPA encouraging additional analysis of the Clean Air Planning Act and the Clean Power Act.

Download Letter (pdf)
Download Packet (pdf)

U.S. EPA Presentation for Jeffrey Holmstead: S. 3135 The Clean Air Planning Act of 2002 - November 2002
U.S. EPA staff presentation to Jeffrey Holmstead, Assistant Administrator for EPA's Office of Air and Radiation, on the economic costs and benefits of the Clean Air Planning Act.

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Multi-Pollutant Power Plant Legislation and the Opportunities for the Agricultural Sector
The CO2 cap-and-trade program proposed by the Clean Air Planning Act would afford a number of economic opportunities for the agricultural sector.  Farmers throughout the country would have an opportunity to undertake projects that remove carbon from the atmosphere (e.g., by adopting low-till agricultural methods), generating emission reduction credits which in turn can be sold to companies in the electric generating sector.

Download Issue Paper (pdf)

Institute of Clean Air Companies Sees Adequate Labor for Carper Multi-Pollutant Bill (S.3135)

The question has been asked whether there is adequate labor to retrofit compliance technologies under multi-pollutant legislation such as the "Clean Air Planning Act of 2002" (S. 3135, introduced by Sen. Carper and others, October 2002), and President Bush’s "Clear Skies" legislation. ICAC believes there is.

Link to Press Release (pdf)