$ 8 billion) over first ten years for deficit reductionObeys PAYGO; Starting in 2026, 25 % of auction revenues for deficit reductionFuels and TransportationIncrease biofuels to 60 million gallons by 2030, low -
carbon fuel standard of 10 % by 2010, 1 million plug» in hybrid cars by 2025, raise fuel economy standards, smart growth funding, end oil subsidies, promote natural gas drilling, enhanced oil recoverySmart growth funding, plug - in hybrids, raise fuel economy standards $ 7 billion a year for smart growth funding, plug - in hybrids, natural gas vehicles, raise fuel economy standards; offshore drilling with revenue sharing and oil spill veto, natural gas fracking disclosureCost ContainmentInternational offsetsOffset pool, banking and borrowing flexibility, soft price collar using permit reserve auction at $ 28 per ton going to 60 % above three - year - average
market price» Hard» price collar between $ 12 and $ 25 per ton, floor increases at 3 % + CPI, ceiling at 5 % + CPI, plus permit reserve auction, offsets
like W - MClean Air Act And StatesNot discussedOnly polluters above 25,000 tons of
carbon dioxide equivalent a year, regional cap and
trade suspended until 2017, EPA to set stationary source performance standards in 2016, some Clean Air Act provisions excludedOnly polluters above 25,000 tons of
carbon dioxide equivalent a year, regional cap and
trade pre-empted, establishes coal - fired plant performance standards, some Clean Air Act provisions excludedInternational CompetitivenessTax incentives for domestic auto industryFree allowances for
trade - exposed industries, 2020
carbon tariff on importsCarbon tariff on importsReferences: Barack Obama, 2007; Barack Obama, 8/3/08; Pew Center, 6/26/09; leaked drafts of American Power Act, 5/11/10.
To achieve these targets, the plan calls for controlling emissions from energy - intensive industries
like power and steel, building a unified national
carbon emissions
trading market, implementing emissions reporting and verification for key industries, and establishing a green finance system, among other measures.
The deal prohibits state or local pollution authorities
like CARB from directly regulating
carbon emissions from refineries, as it legislates the
market mechanism of cap - and -
trade as the sole means within the state for regulating
carbon emissions from stationary sources
like refineries out to 2030.