Keep America Competitive Global Warming Policy Act of 2006

This bill would have established a national "cap-and-trade" system to limit greenhouse gas emissions by requiring energy producers and importers to obtain government-issued allowances for the carbon they produce. To manage the economic transition, the bill proposed a "safety valve" price to prevent energy costs from rising too high and directed the government to sell additional allowances if prices hit a certain limit.

For the average citizen, the bill’s impact would have been felt through changes in energy costs and the redistribution of federal funds. Revenue generated from the sale of these allowances would have been used to fund new energy research, provide home heating assistance for low-income families, and offer job training or economic aid to workers and communities negatively affected by the shift away from fossil fuels. Additionally, the bill included provisions to reward businesses or landowners who successfully captured and stored carbon through "sequestration" projects.