PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Subcommittee on Energy and Air Quality.
Congressional Research Service
Version 00 · Introduced in House · Sep 26, 2008
Carbon Leakage Prevention Act - Directs the Administrator of the Environmental Protection Agency (EPA) to annually distribute emission allowances to the owners and operators of facilities in eligible industrial sectors that are subject to a national cap and trade program. Requires the Administrator to identify the industrial sectors eligible to receive emission allowances under this Act based on specified criteria that includes: (1) the greenhouse gas intensity of the domestic production; and (2) the potentional for greater foreign sourcing of production or services and the effect of international competition on domestic production.
Sets forth calculations for determining the quantity of emission allowances to be distributed by the Administrator under this Act for a calendar year to an owner or operator based on a direct compliance allowance factor and an indirect carbon allowance factor accounting for emissions intensity and electricity efficiency. Requires the Administrator to differentiate between iron and steel manufacturing facilities using integrated iron and steelmaking technologies and facilities using electric arc furnace technologies.
Requires the Administrator to report to Congress biennially on the carbon leakage of domestic energy-intensive industrial manufacturers and the effectiveness of the emission allowances distributed under this Act.
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Directs the Administrator to reduce or terminate the distribution of emission allowances under this Act if the President determines that international governmental activities to reduce global greenhouse gas emissions have substantially mitigated or rendered insignificant: (1) the competitive disadvantage to U.S. manufacturers; and (2) the carbon leakage and related diversion of production to foreign facilities.
People & committees
Rep. Inslee, Jay [D-WA-1] · D–WA
Legislative record
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Referred to the Subcommittee on Energy and Air Quality.
Referred to the House Committee on Energy and Commerce.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Aug 14, 2025. Consult Congress.gov for the current record.
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