Back To The Hill For America’s Cap-And-Trade Bill

Posted on 29. Jun, 2009 by Ross in Government Policy, North America

Friday finally saw the approval of the American Clean Energy and Security Act by the United States Congress, but it now heads to the Senate where it’s prospects are far less certain.

The bill, also known as the Waxman-Markey bill after its chief sponsors, mandates reductions in carbon dioxide emissions and sets national standards for energy efficiency. It is the US’s key bargaining chip on the international climate talks, signalling the country’s clear intent act more seriously on the growing threat of climate change.

The highly controversial bill passed by 217 votes to 212, with 42 Democrats voting against it. Most of the opposition came from both national and regional economic fears: the effect of increased energy bills on a struggling economy, and the impact of a cleaner energy mix on coal-mining and oil-drilling states. The projections for the bill’s costs and benefits vary wildly, with Republicans fighting against the proposals which they see as an unnecessary energy tax.

Environmentalists are also now predominantly against the bill, bitter at the sheer volume of concessions made to lobbyists which has bulked out the document to over 1,200 pages. They also point to the pitiful 4% reduction target for carbon emissions from 1990 levels at a time when many other Western nations are aiming for figure over 30%, and developing nations are backing scientists’ calls for at least 40%. Greenpeace said in a statement prior to the vote:

The giveaways and preferences in the bill will actually spur a new generation of nuclear and coal-fired power plants to the detriment of real energy solutions. To support such a bill is to abandon the real leadership that is called for at this pivotal moment in history. We simply no longer have the time for legislation this weak.

Despite this, the Waxman-Markey bill’s proponents claim that the key parts of the legislation are still in place and will perform the role required: reduce the US’s gargantuan carbon footprint. The bill’s key provisions include:

Requiring electric utilities to meet 20% of their electricity demand through renewable energy sources and energy efficiency by 2020.
Investing $190 billion into new clean energy technologies and energy efficiency, including energy efficiency and renewable energy ($90 billion in new investments by 2025), carbon capture and sequestration ($60 billion), electric and other advanced technology vehicles ($20 billion), and basic scientific research and development ($20 billion).
Mandates for new energy-saving standards for buildings, appliances, and industry.
Reduces carbon emissions from major U.S. sources by 17% by 2020 and over 80% by 2050 compared to 2005 levels. Complementary measures in the legislation, such as investments in preventing tropical deforestation, will achieve significant additional reductions in carbon emissions.

Speaking about the bill, Presient Barak Obama added his opinions to reporters on Sunday:

So I think that at the end of the day this bill represents an important first step. There are critics from the left as well as the right; some who say who doesn’t go far enough, some who say it goes too far. I am convinced that after a long period of inaction, for us to have taken such a significant step means that we’re going to be in a position to advance technologically, obtain huge gains in efficiency.

Obama remains confident that the Senate will approve the bill with the key carbon-reducing components intact. If not, he has a back-up plan: the Environmental Protection Agency is already empowered to pursue heavily-polluting companies under the Clean Air Act, after carbon dioxide was officially declared a pollutant. This also keeps America’s hand in at the international bargaining table - they can correctly say that they will take action on climate change whether the American Clean Energy and Security Act passes or not.

Image by Will Palmer @ Flickr