A discussion draft of broad legislation to reduce greenhouse gas emissions was released March 31, 2009, by Representative Waxman, Chairman of the House Committee on Energy and Commerce, and Representative Markey, Chairman of the Energy and Environment Subcommittee. The draft legislation, titled the American Clean Energy and Security Act of 2009, proposes a "cap and trade" system to control carbon dioxide and other greenhouse gases that have been associated with global climate change. The proposed cap-and-trade system would cover electric utilities and other entities that together are responsible for 85% of U.S. greenhouse gas emissions. Covered entities would need permits (called allowances) to emit carbon dioxide and other greenhouse gases, and unused allowances could be banked for future use or sold. The number of allowances issued each year would be gradually reduced until greenhouse gas emissions from covered entities were cut 83% below 2005 levels in 2050. To address concerns that greenhouse gas controls could place U.S. manufacturers at a competitive disadvantage, the draft bill authorizes compensation to certain industrial sectors. If the President determined that competitive imbalances persisted despite those payments, foreign manufacturers and importers would have to purchase special allowances to cover the carbon emissions related to their imported products. The draft bill would require retail electricity suppliers to meet a certain percentage of their power load with electricity generated from renewable resources, starting at 6% in 2012 and gradually rising to 25% in 2025. Several major issues are not addressed by the draft bill and are still under discussion, such as how to allocate emission allowances and how to assist workers and consumers affected by the cap-and-trade system. Substantial controversy is also continuing over the draft bill's renewable energy mandate on electricity suppliers. The remainder of this report provides a brief summary of the provisions of the March 31 Waxman-Markey discussion draft. The summary focuses on general descriptions of the discussion draft's provisions, excluding most details and analysis. It is not designed to track the development and evolution of greenhouse gas legislation. This summary was prepared by CRS analysts in the following subject areas: Carbon capture and storage, [author name scrubbed], x[phone number scrubbed] Electricity grid, Stan Kaplan, x[phone number scrubbed] Energy efficiency, [author name scrubbed], x[phone number scrubbed] Global warming adaptation, Jane Leggett, x[phone number scrubbed] Pollution reduction programs, [author name scrubbed], x[phone number scrubbed], and Jonathan Ramseur, x[phone number scrubbed] Renewable energy, Richard Campbell, x[phone number scrubbed] Transportation, Brent Yacobucci, x[phone number scrubbed] Establishes a federal Renewable Electricity Standard to promote renewable energy production. Under the standard, each retail electricity supplier with annual sales of 1 million megawatt-hours (mwh) or more must earn or acquire Renewable Electricity Credits (RECs) for a portion of its retail electricity sales. The portion begins at 6% in 2012 and rises to 25% in 2025, remaining at that level through 2039. RECs can be traded or banked, and can be earned by producing electricity from any "renewable energy resource," including wind, solar, geothermal, marine or hydrokinetic, biomass, landfill gas, or qualified hydropower. "Distributed generation"—small-scale, non-combustion power production located at consumer sites—qualifies for three RECs for each mwh of eligible renewable electricity. Up to 20% of the RECs can be provided by complying with the Federal Energy Efficiency Resource Standard in sec. 611 of the draft. "Alternative compliance" payments can substitute for RECs. A new Renewable Electricity Deployment Fund would collect alternative compliance payments and civil penalties for non-compliance; the funds would be redistributed annually to retail electric suppliers that had submitted the required RECs. In establishing regulations for this program, the Secretary of Energy must, to the extent practicable, incorporate and preserve best practices of existing state-level renewable electricity programs and cooperate with states on minimizing administrative costs and burdens. Within 120 days of enactment, the Administrator of the U.S. Environmental Protection Agency (EPA), in consultation with the Secretary of Energy and the heads of other relevant federal agencies as the President may designate, must submit to Congress a report setting forth a unified and comprehensive strategy to address the key legal and regulatory barriers to the commercial-scale deployment of carbon capture and sequestration. Requires a coordinated certification and permitting process for geologic sequestration sites, considerating all relevant statutory authorities. In establishing such an approach, the Administrator shall take into account, and reduce redundancy with, the requirements of the Safe Drinking Water Act and, to the extent practicable, reduce the burden on certified entities and implementing authorities. Not later than two years after enactment, the Administrator is to promulgate regulations to protect human health and the environment by minimizing the risk of atmospheric release of carbon dioxide injected for geologic sequestration, including enhanced hydrocarbon recovery combined with geologic sequestration. Not later than two years after enactment, and at three-year intervals thereafter, the Administrator is to deliver to the relevant congressional committees a report on geologic sequestration in the United States, and to the extent relevant, other countries in North America. Amends the Safe Drinking Water Act by inserting a provision directing the EPA Administrator to promulgate regulations for the development, operation, and closure of carbon dioxide geologic sequestration wells. The regulations are to include requirements for maintaining evidence of financial responsibility for emergency and remedial response, well-plugging, site closure, post-injection site care, and related activities. Within 18 months, requires a report on the legal framework for geologic sequestration sites by a task force composed of an equal number of subject matter experts, nongovernmental organizations with expertise in environmental policy, academic experts with expertise in environmental law, state officials with environmental expertise, representatives of state attorneys general, and members of the private sector. The task force is to conduct a study of existing federal environmental statutes, state environmental statutes, and state common law that apply to geologic sequestration sites for carbon dioxide. Requires a study of carbon dioxide transportation by the Department of Energy (DOE), the Federal Energy Regulatory Commission (FERC), and other relevant federal agencies to assess the need for and barriers to the construction and operation of pipelines to transport carbon dioxide for sequestration or enhanced hydrocarbon recovery. The Secretary of Energy is to consider barriers or potential barriers, and regulatory, financing, or siting options that would mitigate market risks or help ensure the construction of pipelines dedicated to transporting carbon dioxide for sequestration or enhanced hydrocarbon recovery. Within 180 days after enactment, the Secretary is to submit a report describing the results of the study to the relevant congressional committees. Authorizes a Carbon Storage Research Corporation to establish and administer a program to accelerate the commercial availability of carbon dioxide capture and storage technologies and methods. The program is to include competitively awarded grants, contracts, and financial assistance to electric utilities, academic institutions, and other eligible entities. The corporation is to be established as follows: Qualified industry organizations may conduct, at their own expense, a referendum among the owners or operators of distribution utilities delivering fossil fuel-based electricity for the creation of a Carbon Storage Research Corporation. Such referendum shall be conducted by an independent auditing firm agreed to by the qualified industry organizations. Upon approval of those persons representing two-thirds of the total quantity of fossil fuel-based electricity delivered to retail consumers, the Corporation shall be established unless opposed by the State regulatory authorities. If 40 percent or more of the State regulatory authorities submit to the independent auditing firm written notices of opposition, the Corporation shall not be established notwithstanding the approval of the qualified industry organizations. The Corporation shall operate as a division or affiliate of the Electric Power Research Institute and be managed by a Board of not more than 15 voting members responsible for its operations. EPRI, in consultation with the Edison Electric Institute, the American Public Power Association and the National Rural Electric Cooperative Association, shall appoint the Board members from among candidates recommended by those organizations. The section establishes requirements for board members, compensation, and terms of service. Provides descriptions of the status of corporations, functions and administration of the corporation, and details of corporation administration, including the use of grants and contracts, intellectual property issues, budgeting, record keeping, audits, and reports. Provides assessment rates as follows: Fuel type Rate of assessment per kilowatt hour Coal ................................................................... $0.00043 Natural Gas ...................................................... $0.00022 Oil ..................................................................... $0.00032 This section provides specific provisions for the Electric Reliability Council of Texas (ERCOT), including the corporation factors listed above. Methods are specified for determining fossil-fuel-based electricity deliveries. Within five years, the Comptroller General of the United States must prepare an analysis and report to Congress assessing the Corporation's activities, including project selection and methods of disbursement of assessed fees, impacts on the prospects for commercialization of carbon capture and storage technologies, and adequacy of funding. Establishes a technical advisory committee to provide independent assessments and technical evaluations, as well as make non-binding recommendations to the Board, concerning Corporation activities and describes its role and management. Not later than two years after the date of enactment, the EPA Administrator is to promulgate regulations establishing a program to distribute authorized funds to support the commercial deployment of carbon capture and sequestration technologies in both electric power generation and appropriate industrial operations. Eligibility for funds requires: an electric generating unit that has a nameplate capacity of 250 megawatts or more and derives at least 50% of its annual fuel input from coal, petroleum coke, or any combination of these fuels; or an industrial source that, absent carbon capture and sequestration technology, would emit over 250,000 tons per year of carbon dioxide equivalent.