The legislation would create a cap-and-trade system for carbon dioxide and other greenhouse gases. (Technically, there would be two separate cap-and-trade programs—a bigger one covering most types of greenhouse gases and a smaller one covering hydrofluorocarbons.) Some of the permits would be auctioned — through a new entity, the Climate Change Credit Corporation — and the remaining permits would be distributed at no charge to states and other recipients. Over the 40 years that the proposed cap-and-trade programs would be in effect, the number of allowances and emissions of the relevant gases would be reduced each year.

CBO estimates that enacting S. 2191 as it was ordered reported would increase revenues by about $1.2 trillion over the 2009-2018 period. Over that period, we estimate that direct spending from distributing those proceeds would also total about $1.2 trillion, but more than the revenues. The net effect of the original legislation (as ordered reported) would be to increase deficits (excluding any effects on future discretionary spending) by an estimated $15 billion over the next 10 years; the amended version would instead reduce future deficits (again excluding any effects on future discretionary spending) by roughly $80 billion over the next ten years. In addition, assuming appropriation of the necessary amounts, CBO estimates that implementing S. 2191 would increase discretionary spending by about $4 billion under the original legislation and about $80 billion under the amended version over the 2009-2018 period.:

America's Climate Security Act of 2007 - Requires the Administrator of the Environmental Protection Agency (EPA) to establish: (1) a greenhouse gas (GHG) registry; and (2) a GHG emission allowance transfer system for covered facilities, including specified facilities within the electric power and industrial sectors and facilities that produce or entities that import petroleum- or coal- based transportation fuel or chemicals. Sets forth emission allowances for 2012-2050, with a declining cap on GHGs.

Provides for selling, exchanging, transferring, submitting, retiring, or borrowing emission allowances. Establishes: (1) a domestic offset program to sequester GHGs in agriculture and forests; and (2) the Bonus Allowance Account.

Establishes the Carbon Market Efficiency Board, which shall observe and report on the national GHG emission market and provide cost relief measures if it determines that the market poses significant harm to the U.S. economy.

Provides for the distribution of emission allowances, including initially giving allowances to: (1) specified owners and operators of covered facilities; (2) states; (3) load-serving entities that deliver electricity to retail consumers; (4) the Secretary of Agriculture to reduce GHG emissions in the agriculture and forestry sectors; (5) international forest protection activities; and (6) the Emission Allowance Account for covered facilities in the electric power and industrial sectors.

Establishes in the Treasury and provides for allocations from: (1) the Energy Assistance Fund; (2) the Climate Change Worker Training Fund; (3) the Adaptation Fund; and (4) the Climate Change and National Security Fund.

Establishes the Climate Change Credit Corporation to auction emission allowances. Provides for the use of auction proceeds, including for a zero- or low-carbon energy technologies program, an advanced coal and sequestration technologies program, incentives for production of fuel from cellulosic biomass, and an advanced technology vehicles manufacturing incentive program.

Amends the Energy Policy and Conservation Act to set forth provisions concerning appliance energy efficiency requirements and state building energy efficiency code updates.

Labels: Carbon Cap, Lieberman Warner, S2191