On June 19, House Ways and Means Committee member Lloyd Doggett (D-TX), and 15 other members of the Committee, introduced new climate legislation, H.R. 6316, The Climate Market Auction, Trust, and Trade Emissions Reduction System, or the "Climate MATTERS Act." The bill now has 78 cosponsors, and was referred primarily to the Ways and Means Committee, with additional referrals to eight other Committees. The primary referral strongly suggests a desire by members for an elevated role for the tax-writing committee in producing a climate bill next Congress. A hearing on H.R. 6316 will be held in the House Ways and Means Committee in July. The following members from New England joined as original cosponsors of the bill, Reps. Joe Courtney (D-CT), Rosa DeLauro (D-CT), William Delahunt (D-MA), John Larson (D-CT), James McGovern (D-MA), Niki Tsongas (D-MA) and John Olver (D-MA).
The bill would establish an economy-wide, market-based cap-and-trade mechanism to reduce greenhouse gas emissions (GHG) by 80% below 1990 levels by the year 2050. It would create a carbon market in which allowances to emit greenhouse gases will be auctioned, with part of the proceeds going towards "deficit reduction" and "citizen protection." Unlike the Lieberman-Warner bill in the Senate, responsibility for the auction and management of the funds it generates would be vested in the Treasury Department. Initially, 85% of the allowances would be auctioned, transitioning to a 100% auction by 2020. The remaining 15% would be distributed to affected industries to assist them in making the transition to the new, low-carbon economy. In the period from 2012-2018, the auction is estimated to raise roughly $1.1 trillion. "Citizen Protection" would include assistance to low-and moderate-income consumers, natural resource adaptation plans, international adaptation plans, transition assistance to dislocated workers and their communities, energy efficiency, transportation alternative and green energy research, among other things.
The bill would also direct the President to negotiate with other nations to develop cap-and-trade systems that are comparable to that of the United States. It would also require importers of certain-carbon intensive goods from countries without comparable emissions limits to purchase allowances to cover emissions resulting from the production of those goods.
The bill would also set up a Carbon Market Efficiency Board to ensure the carbon market is functioning properly and will not cause harm to the economy. Title V of the bill directs the Environmental Protection Agency (EPA) to develop a GHG registry that covers all emissions of GHG in the United States.