Sens. Jeff Bingaman, D-N.M., and Arlen Specter, R-Pa., have introduced the Low Carbon Economy Act of 2007, which is designed to reduce U.S. greenhouse gas emissions while protecting the U.S. economy and promoting interaction with key developing countries in their efforts to control global warming.
The Low Carbon Economy Act of 2007 creates an economy-wide mandatory tradable-permits system that is modeled after the successful U.S. Acid Rain Program, the Senate Energy Committee explains. Because the program sets an annual target and allows firms to buy, sell and trade credits to achieve that target, the bill's sponsors expect the program will achieve the most cost-effective carbon reductions across the economy.
Twenty-four percent of total program allowances will be auctioned by the government to generate revenue for research, development and deployment of low- and no-carbon technologies, provide for climate change adaptation measures and offer assistance to low-income households.
"I believe our legislation represents a strong and balanced approach," says Bingaman. "It will dramatically reduce U.S. greenhouse gas emissions while also spurring new energy technologies, protecting the American economy and engaging developing nations in their efforts to address climate change."