Protecting Energy-Intensive Trade-Exposed (EITE) Industry

Nicholas Institute Brief Comparing EITE Allocation Under S. 1733, The Clean Energy Jobs and American Power Act of 2009, and H.R. 2454, The American Clean Energy and Security Act of 2009

Author(s): Joshua Schneck, Brian Murray, Jan Mazurek and Peter Manilof

Published: October 2009

download: memo (.pdf) >

On September 30, 2009, Senators Kerry and Boxer introduced the Clean Energy Jobs and American Power Act of 2009 (S. 1733). The bill is the Senate counterpart to the House of Representatives bill H.R. 2454, the American Clean Energy and Security Act of 2009. One closely watched provision in both bills is the number of allowances freely allocated to energy-intensive, trade-exposed (EITE) industry. While both bills employ the same system for allocating relief to EITE firms, the amount of relief differs. This memo compares the number and absolute percentage of total emission allowances allocated to EITE industry under the two bills, and provides an estimated difference in the quantity of allowances given and dollar value of that relief.