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

The American Power Act (APA) is a comprehensive legislative proposal to reduce greenhouse gas emissions in the United States through a mandatory cap-and-trade system, phased-in regulation of major emitters, and targeted investments in clean energy. Key features include economy-wide emission reduction targets (reaching 83% below 2005 levels by 2050), a consumption cap on HFCs, and significant financial and regulatory support for nuclear power and carbon capture and sequestration (CCS). The act also includes provisions for offshore drilling moratoriums, transportation efficiency planning, and international climate assistance, while utilizing a complex allowance distribution system to support consumers, industry, and deficit reduction.

• The American Power Act (APA) establishes a mandatory cap on covered greenhouse gases with specific reduction targets relative to 2005 emission levels: 4.75 percent below by 2013, 17 percent below by 2020, 42 percent below by 2030, and 83 percent below by 2050.
• The APA implements a phased point of regulation for greenhouse gas emissions. In 2013, the cap covers 66.2 percent of total U.S. emissions, including all electric power generators, certain refined product providers, and producers/importers of fluorinated gases. By 2016, coverage increases to 84.5 percent to include industrial sources emitting 25,000 tons or more annually and certain natural gas local distribution companies.
• To support the deployment of Carbon Capture and Sequestration (CCS), the APA directs the DOE to establish a program for large-scale projects (>300 MW) aimed at capturing emissions from at least 10 gigawatts. This program is funded by a charge on fossil fuel-based electricity sold to industrial and commercial customers, intended to generate between $2 billion and $2.1 billion annually.
• The APA proposes several measures to expedite the nuclear regulatory process, including the creation of an expedited application procedure by the Nuclear Regulatory Commission (NRC) that combines construction and operation licensing for qualified new reactors of pre-approved designs. It also increases loan guarantee reserves for nuclear power facilities from $18.5 billion to $54 billion.
• The act establishes a moratorium on new offshore drilling until the Department of Interior determines it is safe to continue following the Deepwater Horizon explosion. It mandates that 12.5 percent of federal revenue from leased offshore lands be paid to the land and water conservation fund, and allows coastal states to receive up to $500 million annually in rental and royalty payments.
• The APA includes a consumption cap on hydrofluorocarbons (HFCs) with reduction targets relative to average U.S. consumption between 2004 and 2006: 12.5 percent below by 2013, 33 percent below by 2020, 75 percent below by 2030, and 85 percent below from 2033 onward.
• The act provides for the distribution of allowance value to various sectors. For example, it allocates 2 percent of allowances from 2013-2018 (declining to zero by 2022) to states for energy efficiency and renewable energy deployment. It also allocates 2 percent of allowances from 2013-2022 for clean energy R&D distributed competitively to higher education and companies.
• The APA addresses international climate issues by creating a program for supplemental forestry project emissions reductions, targeting at least 720 million tons in 2020 and 6 billion tons cumulatively by 2025. It also establishes a State Department program to assist developing countries with adaptation and ecosystem protection, funded by half of the allowances allocated for adaptation between 2013 and 2034.
• To manage carbon leakage, the APA allows for allowance rebates to energy-intensive trade-exposed (EITE) industries. If a multilateral agreement is not in force by 2020, the president must establish an international reserve allowance program requiring a border adjustment for imports from certain countries.
• The act mandates transportation efficiency planning, requiring Metropolitan Planning Organizations (MPOs) for cities with populations over 200,000 to include emission reduction targets in their plans. It also establishes a 'Clean Vehicle Technology Fund' to reequip domestic manufacturing facilities for the production of advanced technology vehicles.
• The APA creates a cost containment mechanism including a Cost Containment Reserve. Covered entities (excluding refined product providers) can purchase allowances from this reserve at a set price, starting at $25 per tonne in 2013, with subsequent prices increasing by 5 percent plus inflation annually.
• The act exempts emissions from the combustion of renewable biomass or derived fuel from the cap, covering organic matter from non-federal or Indian lands and specific materials from federal lands, while excluding biomass from national parks and roadless areas.

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} }