Nicholas Institute for Environmental Policy Solutions
October 2009

Protecting Energy-Intensive Trade-Exposed Industry

Protecting Energy-Intensive Trade-Exposed Industry

This primer focuses on H.R. 2454's allocation program for energy-intensive, trade-exposed (EITE) producers, which distributes allowances to affected entities on the basis of production output. It seeks to clarify what is a complex system for defining eligible industrial sectors and for determining the amount of allowances for distribution to individual entities. It also highlights several program areas that could be modified, particularly as they pertain to hard-to-define, heterogeneous manufacturing sectors.