Estimated Relative Impacts on Select Manufacturing Subsectors under the American Power Act

The American Power Act (APA) would require facilities emitting over 25,000 tons of CO2 equivalent to hold emission permits, though energy-intensive, trade-exposed manufacturing subsectors would be eligible for free allowance rebates. WRI analysis indicates that eligible subsectors would receive enough free permits to cover all emissions for 2016 and several years following. Based on EIA projections across low, medium, and high permit price scenarios, most examined chemicals subsectors would experience only modest energy and compliance effects in the first year of compliance (2016).

• The American Power Act (APA) establishes a cap on economy-wide emissions by requiring permits for any facility emitting more than 25,000 tons of carbon dioxide (CO2) or equivalent greenhouse gas, a threshold that most large U.S. chemical facilities would meet.
• Eligible energy-intensive and trade-exposed manufacturing subsectors would receive sufficient free emissions allowance rebates to cover all subsector emissions for 2016 and several subsequent years, although the supply of free permits relative to demand might decline faster than expected over time.
• Using three GHG permit price scenarios (low, medium, and high) based on EIA projections, analysis by WRI and Standard & Poor’s suggests that most examined chemicals subsectors would face only modest compliance and energy effects in the first year of compliance (2016).

APA

World Resources Institute (n.d.). Estimated Relative Impacts on Select Manufacturing Subsectors under the American Power Act. https://www.wri.org/data/estimated-relative-impacts-select-manufacturing-subsectors-under-american-power-act

Chicago

World Resources Institute. Estimated Relative Impacts on Select Manufacturing Subsectors under the American Power Act. n.d. https://www.wri.org/data/estimated-relative-impacts-select-manufacturing-subsectors-under-american-power-act.

Wikipedia

{{cite report |author=World Resources Institute |title=Estimated Relative Impacts on Select Manufacturing Subsectors under the American Power Act |url=https://www.wri.org/data/estimated-relative-impacts-select-manufacturing-subsectors-under-american-power-act |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendestimated, author = {{World Resources Institute}}, title = {{Estimated Relative Impacts on Select Manufacturing Subsectors under the American Power Act}}, institution = {World Resources Institute}, url = {https://www.wri.org/data/estimated-relative-impacts-select-manufacturing-subsectors-under-american-power-act}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }