The Tradeable Energy Performance Standards Act, introduced in March 2025, creates a market-based cap-and-trade system requiring large electricity generators and thermal energy producers to reduce their carbon emissions between 2028 and 2048. Under the program, covered facilities receive annual emission allowances based on their energy output and a declining emissions target that decreases 5-10% each year, with facilities able to trade allowances, purchase compliance alternatives ($50-$70 per ton initially), or face financial penalties if they fail to comply. The bill establishes an EPA-administered tracking system to monitor allowance trading, creates a Carbon Mitigation Fund to finance offset projects like energy efficiency and grid upgrades, and allows smaller facilities to voluntarily participate. Additionally, the bill requires the Comptroller General to report to Congress every two years starting in 2029 on the program's effectiveness in reducing greenhouse gas emissions and its economic impacts, while the EPA must issue detailed implementing regulations within 24 months of enactment.
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