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Protecting Energy-Intensive Trade-Exposed Industry

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

Author(s): Joshua Schneck, Brian Murray, Jan Mazurek, and Gale Boyd

Published: October 2009

download: memo (.pdf) >

This memo focuses on H.R. 2454’s allocation program for energy-intensive, trade-exposed (EITE) producers, which distributes allowances to affected entities based on production output. This memo seeks to clarify what is a complex system for both defining eligible industrial sectors and determining the amount of allowances for distribution to individual entities. It also highlights several areas where the program, as it is currently written, can be modified, particularly as it pertains to hard-to-define, heterogeneous manufacturing sectors.

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