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Defining a role for states within a federal cap-and-trade program will require balancing the benefits of preserving states’ ability to innovate and spur emissions reductions with the challenges that state-by-state regulation may create for some businesses. Finding the approach

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What is a cap-and-trade program?

A cap-and-trade program sets a maximum limit, or a “cap,” on
greenhouse gas (GHG) emissions from those facilities and sectors
covered by the regulation. An emitter covered by the cap
has two primary obligations:

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Like many other requirements of the Clean Air Act (the Act), the standards of performance under section 111 are designed and implemented through a federal-state partnership. EPA lists the categorie

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  • Caps, Coverage and Compliance
  • Market Oversight and Structure
  • Cost Containment
  • Allowance Value Distribution
  • International Engagement and Competitiveness
  • State and Regional Programs
  • Complementary Policies
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Carbon offsets can be an effective tool for lowering the costs of compliance in a cap-and-trade program, and are already being widely used internationally to comply with greenhouse gas emissions targets. To function well and maintain the integrity of a cap-and-trade system, carbon

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Coal is a key fuel source for current and future electric power generation. Coal becomes even more critical when cost of electricity and security of supply issues are viewed in light of other fuel sources such as gas or uranium. Yet coal combustion

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U.S. decision-makers enjoy access to some of the best economic information and analysis in the world, including detailed measurements of economic activity, employment, and changes in the productivity of labor and capital. These statistics and indicators drive policy and move markets.

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