Climate 411

President Calls on House to Pass Climate Bill

By Tony Kreindler / Published: June 23, 2009

At this afternoon’s press conference, the president spoke about the climate change legislation that the House is set to address on Friday. Here’s what he said:

We all know why this is so important. The nation that leads in the creation of a clean energy economy will be the nation that leads the 21st century’s global economy. That’s what this legislation seeks to achieve. It’s a bill that will open the door to a better future for this nation and that’s why I urge members of Congress to come together and pass it.

That’s about all that needs to be said — it’s clear what our members of Congress need to do now.

Also posted in Climate Change Legislation / Read 1 Response

Link: TNR on How Climate Bill Allocates Allowances

By Tony Kreindler / Published: June 10, 2009

Brad Plumer over at TNR has a good post about how allowances are allocated in the climate bill in front of the House. He goes into detail about how savings will be passed through to consumers, including some insight from our own Nat Keohane.

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Climate Bill Passes Five Tests on Allocating Allowances

By Nat Keohane / Published: June 10, 2009

I was invited to testify yesterday in front of the House Energy and Commerce Committee on how allowances are allocated under HR2454, the American Energy and Security Act of 2009 (ACES). You can see my full testimony here.

I started with the broad economic arguments for passing climate legislation now: by doing so, we can harness American innovation, ensure leadership in making the next generation of clean-energy technologies, and unleash investment that will help pull our economy out of the recession.

Then I turned to the allocation provisions of the bill.  The allocation plan will preserve the environmental and economic effectiveness of the legislation, helping move us forward in solving the climate crisis in a way that is affordable, equitable and efficient.

Specifically, I outlined five major principles that any set of allocations should reflect, and illustrated how HR2454 fulfills each.

  • First, the bill protects consumers, particularly low-income consumers.  It does this through three channels: allowance value allocated to local distribution companies, who are required to pass that value on to customers in the form of lower utility bill; direct funding for rebates and energy credits directed specifically at low- and moderate-income households; and broader tax refunds, especially in the later years of the program. In total, nearly half (44 percent) of the total allowance value goes directly to households – amounting to an estimated $700 billion in present value.
  • Second, HR2454 includes provisions that preserve and strengthen the international competitiveness of U.S. businesses and workers during the transition to a clean energy economy, by directing about 12 percent of total allowance value (over the life of the bill) to energy-intensive and trade-exposed industries.
  • Third, the allocation plan respects differences across states and regions by allocating half of the allowances for electricity consumers on the basis of CO2 emissions and half on the basis of electricity generation.
  • Fourth, the integrity and credibility of the program is preserved since the bill ensures that consumers receive the allowance value intended for their benefit due to provisions specifically requiring utility companies to pass on the allowance value they receive.
  • Finally, HR2454 directs some value (26 percent over the life of the bill) to public purposes that are the objectives of the legislation, including clean energy innovation, carbon capture and storage, investments in renewables and energy efficiency, and climate change adaptation.

Overall, HR2454 passes these tests with flying colors.

Also posted in Climate Change Legislation, Economics / Read 1 Response

New Momentum to Pass a Carbon Cap in 2009

By Tony Kreindler / Published: May 21, 2009

The House Energy and Commerce Committee just approved landmark climate change legislation, the American Clean Energy and Security Act.

EDF president Fred Krupp said it this way: “The committee today put climate legislation on the path to the President’s desk.”

This vote is much more than a procedural milestone. To pass this bill, the committee had to bridge regional differences among its diverse membership. It succeeded in producing a strong bill that can win broad support in the House and serve as a template for quick Senate action.

The bill, also known as the Waxman-Markey bill, draws on key provisions of a legislative blueprint negotiated by the 25 leading companies from every sector of the U.S. economy and the five non-profit groups in the U.S. Climate Action Partnership. Committee action on the bill also drew support from labor unions like the United Auto Workers and the Steelworkers, faith groups, and state and local officials.

The timing couldn’t be better.  Fred Krupp says, “As the President’s economic advisors said this week, a cap on global warming pollution is essential to our economic recovery and our long-term financial health.”

We look forward to action by the full House this summer.

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450 Poison Pills

By Sharyn Stein / Published: May 21, 2009

The House Energy and Commerce Committee continues to slog through debate on the American Clean Energy and Security Act. Debate has been slow because opponents of the bill plan to introduce a whopping 450 amendments. You might think the unusually high number of amendments shows genuine concern about the issue, but some of the proposed measures are truly bizarre.

Among the amendments that opponents say they’ll introduce are provisions to eliminate all the tax benefits for any business in USCAP — a group of major corporations that support a carbon cap. USCAP includes companies like PepsiCo, Shell Oil, Duke Energy, PG & E and Johnson & Johnson.

Another proposed provision specifically targets a much smaller, non-profit group — us. That amendment would call specifically for reviewing the tax status of Environmental Defense Fund.

Those amendments haven’t been introduced yet, but they’re still on the list of 450 so that could materialize at any time. It’s hard to imagine how these actions would benefit the debate over climate change.

Perhaps opponents have no substantial ammunition with which to attack this bill?

Also posted in Climate Change Legislation / Comments are closed

Climate Legislation Link Round-Up

By Tony Kreindler / Published: May 19, 2009

With climate legislation moving to a vote this week in Chairman Henry Waxman’s Energy and Commerce Committee, it’s encouraging to see thoughtful and honest arguments and posts covering the various angles of this historic step forward. 

Paul Krugman’s The Perfect, the Good, the Planet posits that while imperfect, Waxman-Markey is our best chance at addressing climate change.  Joe Romm sets the record straight on Europe’s carbon trading efforts in his recent post, and Daniel Weiss provides a succinct update on where the legislation currently stands.

Did we leave anything out?  If so, post your links in the comments!

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