Policy Integrity released a letter of support for HR 1862. This bill, known as the Cap and Dividend Act of 2009, proposes a system of curbing greenhouse gas emissions that auctions carbon allowances and refunds the proceeds to American households.
Some carbon cap proposals, like the Lieberman-Warner bill proposed in the US Senate in 2007, give away a substantial number of greenhouse gas allowances. Economists have found that, to protect low-income and middle-class families from rising energy prices, it is better to auction the permits and provide a direct refund to individuals and families.