WRI Summary of The American Power Act (Kerry-Lieberman Discussion Draft)

The American Power Act (APA) proposes a comprehensive US framework to reduce greenhouse gas emissions through a mandatory cap-and-trade system, targeted emission reduction goals, and strategic investments in clean energy. The bill establishes a phased-in cap on covered gases, starting in 2013 and reaching an 83 percent reduction below 2005 levels by 2050. It includes specific provisions to expedite nuclear power development, deploy carbon capture and sequestration (CCS), and provide financial assistance to consumers and workers during the transition to a low-carbon economy. The APA also addresses international climate activities, including the use of international offsets and border adjustments to prevent carbon leakage.

• The APA establishes a mandatory cap on covered greenhouse gases with specific reduction targets relative to 2005 emission levels: 4.75 percent by 2013, 17 percent by 2020, 42 percent by 2030, and 83 percent by 2050.
• The bill implements a hybrid point of regulation for the emissions cap, covering 66.2 percent of total U.S. emissions in 2013 and increasing to 84.5 percent by 2016.
• To accelerate nuclear power, the APA proposes expediting the Nuclear Regulatory Commission (NRC) application process by combining construction and operation licensing and increasing loan guarantee reserves from $18.5 billion to $54 billion.
• The act creates a framework for Carbon Capture and Sequestration (CCS), including a funding program for large-scale projects (>300 MW) to capture emissions from at least 10 gigawatts, funded by charges on fossil fuel-based electricity sold to industrial and commercial customers.
• The APA includes a separate consumption cap on hydrofluorocarbons (HFCs), targeting reductions relative to 2004-2006 average U.S. consumption: 12.5 percent by 2013, 33 percent by 2020, 75 percent by 2030, and 85 percent from 2033 onward.
• The legislation provides for a system of offsets with a total annual limit of two billion tons, of which no more than 75 percent can be domestic or term offsets and no more than 25 percent can be international offsets.
• To mitigate carbon leakage and maintain competitiveness, the APA provides allowance rebates to energy-intensive trade-exposed (EITE) manufacturers and proposes an international reserve allowance program as a border adjustment if multilateral agreements are not reached by 2020.
• The act establishes several consumer protection mechanisms, including a Universal Trust Fund by 2026 for taxpayer tax credits and an Energy Refund Program providing monthly payments to low-income families earning up to 150 percent of the poverty line.
• The APA mandates a moratorium on new offshore drilling until the Department of Interior determines it is safe following the Deepwater Horizon explosion, and requires a 12.5 percent conservation royalty from federal revenue of leased offshore lands.
• The bill prohibits states from operating their own cap-and-trade programs, though it allows for state low-carbon fuel and vehicle fleet standards.

APA

Larsen, J., Bradbury, J., Kelly, A., Bishins, A., & Ziegler, M. (n.d.). WRI Summary of The American Power Act (Kerry-Lieberman Discussion Draft). World Resources Institute. https://pdf.wri.org/wri_summary_american_power_act_2010-06-07.pdf

Chicago

Larsen, John, James Bradbury, Alexia Kelly, Allison Bishins, and Micah Ziegler. WRI Summary of The American Power Act (Kerry-Lieberman Discussion Draft). World Resources Institute, n.d. https://pdf.wri.org/wri_summary_american_power_act_2010-06-07.pdf.

Wikipedia

{{cite report |last1=Larsen |first1=John |last2=Bradbury |first2=James |last3=Kelly |first3=Alexia |last4=Bishins |first4=Allison |last5=Ziegler |first5=Micah |title=WRI Summary of The American Power Act (Kerry-Lieberman Discussion Draft) |publisher=World Resources Institute |url=https://pdf.wri.org/wri_summary_american_power_act_2010-06-07.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{larsenndwri, author = {Larsen, John and Bradbury, James and Kelly, Alexia and Bishins, Allison and Ziegler, Micah}, title = {{WRI Summary of The American Power Act (Kerry-Lieberman Discussion Draft)}}, institution = {World Resources Institute}, url = {https://pdf.wri.org/wri_summary_american_power_act_2010-06-07.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }