An Analysis of the Carbon Limits and Energy for America’s Renewal (CLEAR) Act and Comparison to Waxman-Markey
Author(s): Eric Williams
Published: May 2010
download: policy brief (.pdf) >
This policy brief outlines the Nicholas Institute’s recent analysis of the Carbon Limits and Energy for America’s Renewal (CLEAR) Act, introduced by Senators Maria Cantwell (D-WA) and Susan Collins (R-MA) on December 9, 2010. The CLEAR Act is a straightforward upstream cap-and-trade program with an allowance price collar and a 100% auction. The cap on fossil carbon-7% below 2005 levels in 2010-is relatively modest in the early years. The cap becomes increasingly stringent over time and is 31% below 2005 levels in 2030 and 82% below in 2050. The price floor starts at $7 per ton of CO2 and rises at 6.5% per year, and the ceiling starts at $21 and rises at 5.5% per year. Additional allowances beyond the cap can be sold at the ceiling, or “safety valve,” price, and the revenue generated from the sale of these allowances is designated to purchase offset-like activities (OLAs) intended to reduce net GHG emissions.
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