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| Jane Ginn is the owner of SedonaCyberLink.com |
Clean Energy and Security
By Jane Ginn, MRP,
AIT
SEDONA, AZ (June 5, 2009) - Now that we are
well into the 2009 Congressional calendar, and the
economic fear-based malaise is beginning to subside
with a leveling off of the stock market, Congress
has begun to brush the dust off and really get back
to work.
A number of proposed bills caught my eye as I was perusing the U.S. Library of Congress online catalogue (see http://thomas.loc.gov). I was screening for those bills that might have some bearing on the business and life of residents in Northern Arizona. Then I ran across a very important bill that was introduced May 15 in the U.S. House of Representatives.
Energy Security
Possibly the most ambitious piece of legislation in the energy arena so far this Congressional session is the Waxman (D-CA)/Markey (D-MA) “American Clean Energy and Security Act of 2009” (ACES) or H.R. 2454.
What was particularly intriguing was that this bill has received letters of endorsement from such strange bedfellows as General Electric, Dow Chemical, and DuPont, on one hand and the Environmental Defense Fund, the Natural Resources Defense Council and the Audubon Society on the other.
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What was it about this bill that brought together so
many different factions?
Upon further review I found that the bill provides
for:
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An economy-wide cap on carbon with a market-based solution known as ‘cap-and-trade.’ |
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Protections for energy consumers to smooth the transition to a low carbon economy. |
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Effective cost containment approaches, including the ample use of offsets and a mechanism to guard against extreme price volatility and unsustainably high allowance prices. |
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Complementary measures that accelerate technology development and overcome barriers to the wide-spread deployment of energy efficient technologies and practices, renewable energy, coal with carbon capture and storage, advanced transportation solutions and alternative fuels. |
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Support for communities and the nation's workforce as we transform our country's energy infrastructure and adapt to a changing climate. |
There are provisions that will have the effect of:
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Reducing spikes in the price of gasoline as consumers begin to have increased energy efficient options. |
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Encouraging more energy-efficient buildings, appliances and transportation systems that will save consumers money. |
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Cultivating home-grown entrepreneurs and green jobs in the U.S. |
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Stopping the subsidization of technologies that emit hazardous constituents to the air and hazardous chemicals to the soil and groundwater at the cost of public health. |
One of the most controversial elements of the proposed legislation, the cap-and-trade system for carbon emissions, represents a compromise to the budget the Obama administration proposed last month.
His proposed budget relies heavily on income from an extensive cap-and-trade system for carbon emissions. This bill, issued from members of his own party, takes the Obama proposed cap-and-trade system which has an estimated $80 billion of income to the U.S. Treasury factored in, and pre-allocates 85% of the permits to existing stationary sources, thereby eliminating billions of dollars of income from the Obama budget.
The remaining permits would be offered through an
auction generating some revenue for the U.S. federal
budget; however, a far lower amount than anticipated
by Obama’s budget planners. Apparently, the two
authors of this bill are concerned that by using the
cap-and-trade system as a revenue source costs would
be passed on to consumers in higher prices for
energy.
These basic conflicts between the Executive and
Legislative branches on this critical issue has set
the stage for a very difficult battle between the
budget hawks of the Administration and the political
machinery of the House of Representatives.
If you would like to track the progress of this bill
as it winds its way through the House subcommittees
go to:
http://www.opencongress.org/bill/111-h2454/show?gclid=CMP9htT88JoCFRFWagodWHV4Jg
- There you can even comment on key provisions of
the bill.
Let’s hope the battle that emerges over the
cap-and-trade system does not affect the other
important provisions of the proposed bill. More
importantly, let’s hope the outcome does not affect
your pocketbook too much.
Readers' comments
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