# 119-hr-2177: Tradeable Energy Performance Standards Act 119-hr-2177, Tradeable Energy Performance Standards Act, is a 119th Congress bill sponsored by Rep. Casten, Sean [D-IL-6] (D-IL); status introduced; PRIA reads it as touching household money (as of 2025-12-21). - Canonical: https://policyrisk.com/legislation/119-hr-2177 - As of: 2025-12-21 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: 119-hr-2177 - Congress: 119 - Title: Tradeable Energy Performance Standards Act - Status: introduced - Introduced: 2025-03-18 - Sponsor: Rep. Casten, Sean [D-IL-6] (D-IL) - Cosponsors: 0 - Policy area: Energy - Touches household money: yes - Last recorded action: 2025-12-21 ## Summary **This bill would create a national, output-based, tradable cap on carbon dioxide called the Tradeable Energy Performance Standards (TEPS) program.** It would set facility-level output targets, require allowances equal to output times a CO2 target, and build a market with trading, alternative compliance payments, offsets, and penalties. - Families and households could access grants from a Carbon Mitigation Fund to pay for energy-efficiency upgrades, replacing fossil-fuel appliances, electric-vehicle charging, and other electrification. Awards are prioritized by lowest dollars per ton and must show verifiable emissions avoided or CO2 sequestered. - Power and thermal facility operators would be covered if they meet thresholds: 2 megawatts electric or 50 MMBtu/hour thermal. Facilities receive allowances based on annual output and face annual output-based CO2 targets that generally tighten each year relative to a 2027 baseline. - Markets and regulators would get a tracked federal registry with weekly public price and volume summaries, position limits set with the Commodity Futures Trading Commission, and civil penalties equal to three times the prior year’s highest allowance price per missed allowance. Alternative compliance payments begin roughly $50–$70 per allowance in 2028–2038, then rise toward the Social Cost of Carbon by 2048 to fund the Offset Program. The bill also requires sequestration rules that align existing incentives and consultation with Interior and Agriculture and calls for Comptroller General reviews starting in 2029. ## Provisions PRIA read - Grants for carbon cuts and storage: benefit, medium. If enacted, Alternative Compliance Payments and penalties would fund a Carbon Mitigation Fund. EPA would award grants each year for projects that avoid emissions or permanently store CO2, like efficiency upgrades, grid upgrades, replacing gas gear with electric or low‑carbon options, and EV chargin… - Rules for long purchase contracts: benefit, medium. If enacted, 10‑year or longer deals made after the bill between an existing covered facility and a new low‑emission facility could shift allowances. For covered outputs, EPA would give allowances to the existing facility based on the agreed megawatt‑hours or MMBtu times the target, starting the fir… - Two-year setup and watchdog reviews: benefit, medium. If enacted, EPA would have up to 24 months to issue final program rules. The Comptroller General would report to Congress by January 1, 2029, and every two years after. Reports would review distribution efficiency, cost‑effectiveness, jobs and family transitions, clean tech progress, and market hea… - Submit allowances by June or pay ACP: cost, high. If enacted, starting in 2028, owners would submit one allowance per metric ton of last year’s CO2 by June 1 each year. An allowance could only cover its year or the next year; fractions would round to the nearest whole allowance. Instead of an allowance, owners could pay an Alternative Compliance P… - How yearly allowances are given: mixed, high. If enacted, EPA would give allowances each year by March 1, based on last year’s output. Electric plants would get megawatt-hours times the year’s target; thermal plants would get useful thermal output (MMBtu) times the target; cogeneration plants would get both. In 2028, the target would match the… - Trading limits and public tracking: mixed, high. If enacted, EPA would cap how many allowances one entity can hold, with help from the CFTC, to prevent price manipulation and protect liquidity. Allowances would not be property rights, and the U.S. could limit or end trades. All transactions would need a certified representative and EPA recording;… - Which power and thermal plants qualify: mixed, medium. If enacted, large plants would be covered. Electric and cogeneration plants at 2 megawatts or more, and thermal plants at 50 MMBtu/hr (HHV) or more, would need to comply. Smaller plants could ask to opt in; EPA would decide within 90 days and could end it if the plant had no output last year. One a… - No change to other Clean Air rules: mixed, low. If enacted, this title would not change rules in other parts of the Clean Air Act. Existing requirements under other titles would still apply. ## Related bills - 119-hr-7977: Energy Bills Relief Act - 119-hr-7973: Momnibus Act - 119-hr-3971: Domestic Workers Bill of Rights Act - 119-hr-2725: Affordable Housing Credit Improvement Act of 2025 - 119-hr-7853: PrEP Access and Coverage Act of 2026 - 119-hres-1058: Recognizing that it is the duty of the Federal Government to develop and implement a Transgender Bill of Rights to protect and codify the rights of transgender… ## Sources - [119-hr-2177 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/2177) ## Related - [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977) - [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973) - [119-hr-3971: Domestic Workers Bill of Rights Act](https://policyrisk.com/legislation/119-hr-3971) - [119-hr-2725: Affordable Housing Credit Improvement Act of 2025](https://policyrisk.com/legislation/119-hr-2725) - [119-hr-7853: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-hr-7853) - [119-hres-1058: Recognizing that it is the duty of the Federal Government to develop and implem…](https://policyrisk.com/legislation/119-hres-1058) - [All bills in Congress](https://policyrisk.com/legislation) Source: PRIA, https://policyrisk.com/legislation/119-hr-2177 (as of 2025-12-21).