Subtitle A—Investing in Low-Carbon Electricity and Energy Efficiency

Section 3001 details the allocation of allowances to the electric sector. The allowances allocated to the electric sector in section 781 (which begins at 51 percent of allowances in 2012) are to be shared among electric utilities, merchant coal generators and generators holding long term contract obligations. No more than 10 percent of the emissions allocated to the electric sector may go to the merchant coal generators and no more than 4.3 percent may go to generators with long term contract obligations. Of the 85.7% of allowances that go to electric utilities, 75 percent will be allocated based on historical emissions and 25 percent will be based on historical deliveries. New section 782(b)(5) of the Clean Air Act provides that allowances allocated to an electric utility must be devoted exclusively to the benefit of retail ratepayers of that utility and may not be used to support any other sales or to benefit the utility's shareholders.

Subtitle B—Investing in Low-Carbon Heating and Energy Efficiency

Sections 3101–3102 provide similar procedures for distributing allowances and auction proceeds to natural gas local distribution companies to offset increased natural gas costs predicted under the bill. Allowances will also be distributed to states for the purpose of assisting in the implementation of energy efficiency programs to save the users of propane and heating oil from the increased costs of those commodities.

Subtitle C—Consumer Relief

Sections 3201–3207 establish a series of refunds, funding, and credits for working families that will be disproportionately impacted by the costs imposed by the bill, as well as other consumers.

Subtitle D—Advocating for Consumers

Section 3301 establishes an Office of Consumer Advocacy within the Federal Energy Regulatory Commission that is tasked with representing consumer interests in proceedings before the Commission.