Memo on H.R. 2454: Allocation

Nicholas Institute Discussion Memo on H.R. 2454, American Clean Energy and Security Act of 2009

Author(s): Todd Wooten

Published: August 2009

download: memo (.pdf) >

The question of whether or not to allocate credits to the utility industry has always been central to the climate debate. The Waxman-Markey bill does elect to “give” utilities allowances, but the restrictions placed on those allowances severely limit the utilities’ ability to use them for compliance or to improve their bottom line. Instead, the allowances given to utilities must be used solely to protect consumers.