On December 7, 2011, Senator John Thune (R-SD) introduced the S. 1956, the “European Union Emissions Trading Scheme Prohibition Act of 2011.”
The proposed legislation, now being considered by the Senate Committee on Science, Commerce and Transportation, would prohibit operators of a civil aircraft of the United States from participating in any emissions trading scheme unilaterally established by the European Union if the Secretary of Transportation determines that such prohibition is in the public interest. Additionally, the bill requires the Secretary of Transportation and the Administrator of the Federal Aviation Administration to enter into international negotiations and take other actions in the public interest to ensure that United States civil aircraft operators are held harmless from any emission trading scheme unilaterally established by the European Union.
This legislation is particularly relevant in light of the recent extension of the EU emission trading scheme (“EU-ETS”) to all flights to and from airports located in the EU. As of January 1, 2012 civil aircraft operators around the globe will be required to surrender and acquire emissions allowances for all EU flights. The extension of the EU-ETS was challenged before the European Union Court of Justice (the “ECJ”) by the Air Transport Association of America and certain U.S. airlines. The ECJ rejected this challenge on December 21, 2011, opening the doors for the EU-ETS extension into the realm of civil aviation. More information about the EU-ETS can be found at http://ec.europa.eu/clima/policies/ets/index_en.htm.
For further information or questions regarding the proposed legislation or the impact of the EU-ETS, contact Glenn Wicks or Ronce Almond at (202) 457-7790.