New York Democratic Rep. Paul Tonko released legislation Tuesday that would set annual caps on emissions for polluting industries in an effort to accelerate the green energy transition.
The bill, dubbed the ‘‘Climate Pollution Standard and Community Investment Act of 2024,” would require EPA to set emissions caps and require industries like power plants, refineries and large factories to purchase allowances for each ton of climate pollution emitted each year.
The allowances would be sold at an EPA auction, and the amount of allowances available would taper down significantly by 2060 to reach shrinking emission reduction targets.
Companies would be a able to bank allowances for a period of time, and the allowances could be sold between polluting industries, reminiscent of prior attempts to institute a “cap-and-trade” system.
