An overview of various bills and pieces of legislation that mention or involve carbon credits. However, since I do not have access to real-time legislative databases, I can only offer general information based on historical and notable bills up until my knowledge cutoff in 2023.
Carbon credits are often included in bills related to climate change, environmental protection, and carbon emissions reduction. Here are some notable examples of U.S. legislation and proposals that have referenced or been associated with carbon credits:
1. American Clean Energy and Security Act (ACES) of 2009
• Overview: This bill, often referred to as the Waxman-Markey Bill, was a significant piece of climate change legislation that passed the House of Representatives but stalled in the Senate. It included provisions for a cap-and-trade system, which would have created a market for carbon credits.
• Carbon Credit Provisions: The bill aimed to reduce greenhouse gas emissions by creating a system where businesses could buy and sell allowances (carbon credits) to meet emission reduction targets. It was a central feature of the bill's approach to limiting emissions.
2. Clean Energy Jobs and American Power Act (CEJAPA) of 2009
• Overview: Introduced in the Senate by Senators John Kerry and Barbara Boxer, this bill was another attempt to address climate change by creating a cap-and-trade system.
• Carbon Credit Provisions: Similar to ACES, the bill proposed carbon allowances that could be traded, effectively creating a carbon credit market for companies to buy and sell carbon emissions allowances.
3. Carbon Capture and Storage (CCS) Legislation
• Overview: Various bills related to carbon capture and storage have mentioned carbon credits as a way to incentivize businesses to adopt CCS technologies. These bills are aimed at reducing carbon emissions through direct removal of CO2 from industrial processes.
• Carbon Credit Provisions: In some of these proposals, carbon credits were offered as a reward for companies that capture and store carbon emissions in permanent geological formations.
4. Energy Innovation and Carbon Dividend Act (EICDA)
• Overview: This proposed bill aims to reduce carbon emissions by implementing a carbon fee at the source of fossil fuel production and distribution, with revenue returned to the public in the form of dividends.
• Carbon Credit Provisions: Though not strictly a cap-and-trade system, carbon credits have been discussed in relation to this proposal as a mechanism to offset emissions or generate additional revenues for projects like carbon sequestration or renewable energy.
5. Infrastructure Investment and Jobs Act (IIJA) 2021
• Overview: While not primarily focused on carbon credits, this bill includes provisions for funding various climate-related projects and technologies, including those that support the creation of carbon credits (such as carbon capture technologies and renewable energy initiatives).
• Carbon Credit Provisions: The act mentions funding for carbon reduction projects and environmental justice initiatives that could potentially link to carbon credit markets, especially in the context of promoting low-carbon technologies.
6. Build Back Better Act (2021)
• Overview: While the Build Back Better Act did not pass in its original form, it contained various provisions related to climate change and carbon emissions reduction.
• Carbon Credit Provisions: Among its provisions, the bill proposed tax incentives for carbon sequestration and other technologies that could generate carbon credits. These credits could be traded or used to meet compliance targets for emissions reductions.
7. Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act)
• Overview: Passed in 2021, the Infrastructure Investment and Jobs Act contained several provisions for climate and energy-related projects, some of which could involve carbon credit schemes.
• Carbon Credit Provisions: Funding for renewable energy and carbon capture projects could create opportunities for generating and trading carbon credits, although carbon credits themselves were not the main focus.
8. The Paris Agreement (Global Agreements, with U.S. Participation)
• Overview: While not a U.S. bill, the Paris Agreement includes carbon credit mechanisms like Article 6, which creates a framework for carbon credit trading between countries.
• Carbon Credit Provisions: Under Article 6 of the Paris Agreement, countries can trade carbon credits to meet their emission reduction targets. The U.S., as a signatory, is involved in international carbon credit markets, and there have been discussions about how domestic legislation might align with these international rules.
9. State-Level Legislation
• California Cap-and-Trade Program: One of the most notable state-level programs in the U.S., California's cap-and-trade system, involves carbon credits as part of its broader emissions reduction strategy. This system allows businesses to buy and sell carbon credits to meet state-imposed emission reduction targets.
• Other States: States like Washington, New York, and Oregon have also proposed or implemented carbon credit systems, sometimes as part of broader cap-and-trade or carbon pricing frameworks.
10. International Carbon Credit Legislation
• European Union Emissions Trading System (EU ETS): While this is not a U.S. bill, it is one of the largest carbon credit systems globally and has influenced U.S. discussions on carbon pricing and trading.