I 

111TH CONGRESS 

1ST SESSION H. R. 2371 

To use tradable greenhouse gas emission allowances under the American 

Clean Energy and Security Act of 2009 to provide assistance to residential and commercial consumers of home heating oil and propane in 

reducing the effective costs of such fuels through State programs to 

deliver cost-effective efficiency programs and other consumer assistance. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 12, 2009 

Mr. MURPHY of Connecticut (for himself, Mr. MARKEY of Massachusetts, and 

Mr. WELCH) introduced the following bill; which was referred to the 

Committee on Energy and Commerce 

A BILL 

To use tradable greenhouse gas emission allowances under 

the American Clean Energy and Security Act of 2009 

to provide assistance to residential and commercial consumers of home heating oil and propane in reducing 

the effective costs of such fuels through State programs 

to deliver cost-effective efficiency programs and other 

consumer assistance. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. HOME HEATING OIL AND PROPANE CON2 SUMERS. 

3 (a) DEFINITIONS.—For purposes of this section: 

4 (1) CARBON CONTENT.—The term ‘‘carbon con5 tent’’ means the amount of carbon dioxide that will 

6 be emitted as a result of the combustion of a fuel. 

7 (2) COST-EFFECTIVE.—The term ‘‘cost-effec8 tive’’, with respect to an energy efficiency program 

9 or measure, means that the program or measure 

10 meets the Total Resource Cost Test, which requires 

11 that the net present value of economic benefits over 

12 the life of the program or measure, including avoid13 ed supply and delivery costs and deferred or avoided 

14 investments, is greater than the net present value of 

15 the economic costs over the life of the program or 

16 measure, including program costs and incremental 

17 costs borne by the energy consumer. 

18 (b) ALLOCATION.—Not later than September 30 of 

19 each of calendar years 2012 through 2030, the Adminis20 trator shall distribute among the States, in accordance 

21 with this section, 1.5 percent of the emission allowances 

22 that the Administrator has established for the year in 

23 which such distribution is made (adjusted as necessary to 

24 preserve budget neutrality). 


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1 (c) DISTRIBUTION AMONG STATES.—The Adminis2 trator shall distribute allowances among the States under 

3 this section each year ratably based on the ratio of— 

4 (1) the carbon content of home heating oil and 

5 propane sold to consumers within each State in the 

6 preceding year for residential or commercial uses; to 

7 (2) the carbon content of home heating oil and 

8 propane sold to consumers within the United States 

9 in the preceding year for residential or commercial 

10 uses. 

11 (d) SALE OF ALLOWANCES.—Each State receiving 

12 emission allowances under this section shall sell such al13 lowances within 1 year of receipt, either directly or 

14 through consignment to the Administrator for auction. 

15 Emission allowances distributed under this section that 

16 are not sold within 1 year of receipt by a State shall be 

17 returned to the Administrator, who shall distribute such 

18 allowances to the remaining States ratably in accordance 

19 with the formula in subsection (c). 

20 (e) USE OF PROCEEDS.— 

21 (1) IN GENERAL.—States shall use the proceeds 

22 from sales of emission allowances distributed under 

23 this section exclusively for the benefit of consumers 

24 of home heating oil or propane for residential or 


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1 commercial purposes. Such proceeds shall be used 

2 exclusively for— 

3 (A) cost-effective energy efficiency pro4 grams for consumers that use home heating oil 

5 or propane for residential or commercial pur6 poses; or 

7 (B) rebates or other direct financial assist8 ance programs for consumers of home heating 

9 oil or propane used for residential or commer10 cial purposes. 

11 (2) ADMINISTRATION AND DELIVERY MECHA12 NISMS.—In administering programs funded under 

13 this section, States shall— 

14 (A) use no less than 50 percent of funds 

15 provided under this section for cost-effective ef16 ficiency programs to reduce consumers’ overall 

17 fuel costs; 

18 (B) use no more than 5 percent of funds 

19 provided under this section for administrative 

20 expenses; 

21 (C) to the extent practicable, deliver fund22 ing under this section through existing energy 

23 efficiency and consumer energy assistance pro24 grams or delivery mechanisms, including, where 


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1 appropriate, programs or mechanisms adminis2 tered by parties other than the State; 

3 (D) seek to coordinate the administration 

4 and delivery of energy efficiency and consumer 

5 energy assistance programs funded under this 

6 section, with one another and with existing pro7 grams for various fuel types, so as to deliver 

8 comprehensive, fuel-blind, coordinated programs 

9 to consumers; and 

10 (E) ensure that funding provided under 

11 this section does not displace or substitute for 

12 existing or alternative sources of funding for 

13 energy efficiency and consumer energy assist14 ance programs. 

15 (f) REPORTING.—Each State receiving emission al16 lowances under this section shall submit to the Adminis17 trator, within 12 months of each receipt of such allow18 ances, a report, in accordance with such requirements as 

19 the Administrator may prescribe, that— 

20 (1) describes the State’s use of proceeds of 

21 sales of emission allowances distributed under this 

22 section, including a description of the energy effi23 ciency and consumer assistance programs funded 

24 through such proceeds; 


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1 (2) demonstrates the cost-effectiveness of, and 

2 the energy savings achieved by, energy efficiency 

3 programs funded through this section; and 

4 (3) includes a report prepared by an inde5 pendent third party, in accordance with such regula6 tions as the Administrator may promulgate, evalu7 ating the performance of the energy efficiency and 

8 consumer assistance programs funded under this 

9 section. 

10 (g) ENFORCEMENT.—If the Administrator deter11 mines that a State is not in compliance with this section, 

12 the Administrator may withhold a portion of the allow13 ances, the value of which is equal to up to twice the value 

14 of the allowances that the State failed to use in accordance 

15 with the requirements of this section, that such State 

16 would otherwise be eligible to receive under this section 

17 in later years. Allowances withheld pursuant to this sub18 section shall be distributed among the remaining States 

19 ratably in accordance with the formula in subsection (c). 

Æ 


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