| May 14, 2009 |  |
Agreement Moves Waxman-Markey Climate Measure toward House Committee Approval
Bill Needs Strengthening to Guarantee Necessary Carbon Reductions, New Green Jobs and Consumer Benefits, Science Group Says
WASHINGTON (May 14, 2009) – New details of a House Energy and Commerce Committee compromise on the Waxman-Markey climate bill indicate that it may have enough votes to go to the House floor, but it must be strengthened to truly be effective, experts at the Union of Concerned Scientists (UCS) said today.
"Chairman Waxman and congressmen Markey, Gordon, Dingell, Boucher, Doyle and Inslee have addressed some of the thorniest issues, and this agreement demonstrates the good will and tenacity that has long been this committee's hallmark," said UCS President Kevin Knobloch. "This compromise will help move this critical legislation forward.
"While we realize that the committee has to craft compromises based on disparate views," Knobloch added, "we urge its members to work carefully to strengthen some of the provisions to ensure the final bill yields the green jobs and consumer savings that the public deserves."
A stronger renewable electricity standard, for example, would help generate new jobs and billions of dollars in consumer savings, according to Alan Nogee, director of UCS's Clean Energy Program. "We're disappointed the agreement on this standard won't require utilities to use any more renewable electricity than the Energy Information Administration projects would be generated as a result of state renewable electricity standards already in place and the recently enacted stimulus package."
The exemptions in the proposed renewable electricity standard, Nogee said, would make the federal requirement less than what states would achieve on their own without it. "Without federal action, utilities are projected to generate at least 9.9 percent of their power from renewable sources by 2020," said Nogee. "The bill's proposed standard would require, at a minimum, that utilities generate only 8.3 percent of their power from renewables."
Studies by the Energy Information Administration (pdf) (EIA) and UCS have concluded that the United States could meet a 25 percent renewable electricity standard by 2025 at no net cost to consumers. Such a standard would generate hundreds of thousands of new jobs and, under some scenarios, could reduce electricity and natural gas bills. "We urge lawmakers to strengthen the renewables standard in committee and on the floor to ensure that this legislation moves the nation forward," Nogee said.
The committee's compromise would give the auto industry 3 percent of cap-and-trade auction allowances between 2012 and 2017 and 1 percent thereafter, through 2025. Based on an estimated allowance price from $10 to $25 per ton of carbon emissions over that time, the auto industry would receive the equivalent of $15 billion this year to help it build cleaner, more fuel-efficient vehicles, reducing oil imports and insulating Americans from volatile gasoline prices, according to UCS. But these cleaner vehicles will not be available unless the administration ensures that the Environmental Protection Agency sets global warming emission standards for cars and trucks that meet—or beat—state standards.
"The proposed bill would have a very modest impact on gasoline prices—only about 9 to 20 cents per gallon between 2012 and 2025, or less than we've seen gasoline prices rise in the past month," said David Friedman, research director for UCS's Clean Vehicles Program. Since the beginning of 2009, gas prices have jumped more than 60 cents. "If we do this right, cutting carbon emissions from the transportation sector and curbing our oil addiction actually will save U.S. households tens of billions of dollars every year."
According to a new UCS report, "Climate 2030, A National Blueprint for a Clean Energy Economy," if the bill were to include a number of transportation policies that require cleaner cars, low-carbon fuels, and smart growth, car and light truck carbon emissions would drop 20 percent below 2005 levels by 2020 and U.S. households would save more than $20 billion on annual transportation costs beyond savings due to the minimum 35-mile-per-gallon fuel-economy requirement for 2020.
House Energy and Commerce Committee members are expected to release more details of their proposed agreement tomorrow, including the bill's emissions reductions targets. UCS's "Climate 2030" analysis found that the nation could dramatically cut emissions and save consumers and businesses money if Congress enacts a cap on emissions along with complementary energy and transportation policies.
"When we see the additional details tomorrow," Knobloch said, "we hope the committee includes funding for tropical forest protection, funding to help the most vulnerable communities transition to a clean energy economy, and a provision that ensures that future climate policy relies on the latest climate science.
"As the committee tries to move this bill forward, some will lobby for continuing to rely on 19th century technology," he added. "Fortunately, Americans realize we're at a critical crossroads, and they're demanding cleaner energy, reduced dependence on oil, and a climate that's stable and safe."
While Congress debates climate legislation, states have been taking action on their own. Ten Northeast states launched an emissions cap program early this year, and just this week, six Midwestern governors agreed to establish an emissions cap program similar to the one in the Waxman-Markey proposal. The Midwestern governors plan to auction half of all allowances, however, and their proposal has a smaller number of offsets than the current Waxman-Markey bill.
The Union of Concerned Scientists puts rigorous, independent science to work to solve our planet's most pressing problems. Joining with citizens across the country, we combine technical analysis and effective advocacy to create innovative, practical solutions for a healthy, safe, and sustainable future.
