Thoughts on the House climate bill
June 29th, 2009,On Friday I eagerly waited to hear news on whether the U.S. House of Representatives had passed the climate change bill, called the American Clean Energy and Security Act. When I finally heard the news that it had done so, I gave my wife a high-five.
The legislation is far from perfect, but it’s clear that given the way our political system works, this is the best we could get from the House right now. Finally as a nation we have begun to take responsibility for the changes that we are making in the climate. Too often in the past, our actions on this issue have been shameful. Still, advocacy group emails are saying that the fight over the bill in the Senate will be even tougher, as Republicans deride the bill as simply an “energy tax” and many Democrats succumb to coal and oil interests in their states.
I have a family connection to this legislation as well. My brother-in-law is an economist working on the legislation for the House Select Committee on Energy Independence and Global Warming, chaired by Rep. Ed Markey (D-Mass.).
Here are some of the key provisions of the bill, as reported in a press release from that committee:
* Requires electric utilities to meet 20% of their electricity demand through renewable energy sources and energy efficiency by 2020.
* Invests $190 billion in 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 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.
* Protects consumers from energy price increases. According to recent analyses from the Congressional Budget Office and the Environmental Protection Agency, the legislation will cost each household less than 50 cents per day in 2020 (not including energy efficiency savings).