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House Committee on Energy and CommerceEnergy and PowerIntroducedMarch 26th, 2009
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Emission Migration Prevention with Long-term Output Yields Act
To distribute emission allowances under a domestic cap-and-trade program to facilities in certain domestic energy-intensive industrial sectors and subsectors to prevent an increase in greenhouse gas emissions by manufacturing facilities located in countries without commensurate greenhouse gas regulation, and for other purposes.
EMPLOY Act or the Emission Migration Prevention with Long-term Output Yields Act - Requires the Administrator of the Environmental Protection Agency (EPA) to distribute emission allowances (authorizations to emit one carbon dioxide equivalent of greenhouse gas) annually in specified amounts to the owners and operators of facilities in eligible industrial sectors under a domestic cap and trade program, subject to a maximum quantity limitation. Requires the Administrator to promulgate a rule designating the industrial sectors and subsectors (sectors) in which facility owners or operators may receive emission allowances. Requires allowances to be given to a owners or operators of facilities in sectors that are included in a six-digit classification of the 2007 North American Industrial Classification System and that meet either the energy intensity criteria or greenhouse gas (GHG) intensity criteria and the trade intensity criteria. Authorizes the Administrator to rescind the eligibility of a sector only if it does not meet such criteria and would not be subject to carbon leakage in the absence of the allowance distribution. Defines "carbon leakage" to mean any substantial increase in GHG emissions by manufacturing facilities located in countries without commensurate GHG regulation which is caused by an incremental cost of production increase in the United States as a result of a domestic cap and trade program. Authorizes any person to petition the Administrator to designate as eligible to receive allowances any sector that does not meet such criteria but is subject to carbon leakage comparable to that of sectors that meet the criteria. Sets forth the calculations to determine the quantity of allowances distributed to facilities. Requires the Administrator to reduce in 2026 and each year thereafter on a pro-rata basis the amount of emission allowances distributed by an amount equal to 10% of the amount of emission allowances distributed in calendar year 2025. Provides for the review and elimination of such reduction under certain circumstances.