I 111th CONGRESS 1st Session H. R. 2371 IN THE HOUSE OF REPRESENTATIVES May 12, 2009 Mr. Murphy of Connecticut (for himself, Mr. Markey of Massachusetts, and Mr. Welch) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To use tradable greenhouse gas emission allowances under the American Clean Energy and Security Act of 2009 to provide assistance to residential and commercial consumers of home heating oil and propane in reducing the effective costs of such fuels through State programs to deliver cost-effective efficiency programs and other consumer assistance.

1.

Home heating oil and propane consumers

(a)

Definitions

For purposes of this section: (1)

Carbon content

The term carbon content means the amount of carbon dioxide that will be emitted as a result of the combustion of a fuel. (2)

Cost-effective

The term cost-effective, with respect to an energy efficiency program or measure, means that the program or measure meets the Total Resource Cost Test, which requires that the net present value of economic benefits over the life of the program or measure, including avoided supply and delivery costs and deferred or avoided investments, is greater than the net present value of the economic costs over the life of the program or measure, including program costs and incremental costs borne by the energy consumer. (b)

Allocation

Not later than September 30 of each of calendar years 2012 through 2030, the Administrator shall distribute among the States, in accordance with this section, 1.5 percent of the emission allowances that the Administrator has established for the year in which such distribution is made (adjusted as necessary to preserve budget neutrality). (c)

Distribution among States

The Administrator shall distribute allowances among the States under this section each year ratably based on the ratio of— (1)the carbon content of home heating oil and propane sold to consumers within each State in the preceding year for residential or commercial uses; to (2)the carbon content of home heating oil and propane sold to consumers within the United States in the preceding year for residential or commercial uses. (d)

Sale of allowances

Each State receiving emission allowances under this section shall sell such allowances within 1 year of receipt, either directly or through consignment to the Administrator for auction. Emission allowances distributed under this section that are not sold within 1 year of receipt by a State shall be returned to the Administrator, who shall distribute such allowances to the remaining States ratably in accordance with the formula in subsection (c). (e)

Use of proceeds

(1)

In general

States shall use the proceeds from sales of emission allowances distributed under this section exclusively for the benefit of consumers of home heating oil or propane for residential or commercial purposes. Such proceeds shall be used exclusively for— (A)cost-effective energy efficiency programs for consumers that use home heating oil or propane for residential or commercial purposes; or (B)rebates or other direct financial assistance programs for consumers of home heating oil or propane used for residential or commercial purposes. (2)

Administration and delivery mechanisms

In administering programs funded under this section, States shall— (A)use no less than 50 percent of funds provided under this section for cost-effective efficiency programs to reduce consumers’ overall fuel costs; (B)use no more than 5 percent of funds provided under this section for administrative expenses; (C)to the extent practicable, deliver funding under this section through existing energy efficiency and consumer energy assistance programs or delivery mechanisms, including, where appropriate, programs or mechanisms administered by parties other than the State; (D)seek to coordinate the administration and delivery of energy efficiency and consumer energy assistance programs funded under this section, with one another and with existing programs for various fuel types, so as to deliver comprehensive, fuel-blind, coordinated programs to consumers; and (E)ensure that funding provided under this section does not displace or substitute for existing or alternative sources of funding for energy efficiency and consumer energy assistance programs. (f)

Reporting

Each State receiving emission allowances under this section shall submit to the Administrator, within 12 months of each receipt of such allowances, a report, in accordance with such requirements as the Administrator may prescribe, that— (1)describes the State’s use of proceeds of sales of emission allowances distributed under this section, including a description of the energy efficiency and consumer assistance programs funded through such proceeds; (2)demonstrates the cost-effectiveness of, and the energy savings achieved by, energy efficiency programs funded through this section; and (3)includes a report prepared by an independent third party, in accordance with such regulations as the Administrator may promulgate, evaluating the performance of the energy efficiency and consumer assistance programs funded under this section. (g)

Enforcement

If the Administrator determines that a State is not in compliance with this section, the Administrator may withhold a portion of the allowances, the value of which is equal to up to twice the value of the allowances that the State failed to use in accordance with the requirements of this section, that such State would otherwise be eligible to receive under this section in later years. Allowances withheld pursuant to this subsection shall be distributed among the remaining States ratably in accordance with the formula in subsection (c).