Q. What is the current status of climate change legislation?
A. Only one proposal in Congress has been
considered by the full House or Senate.
On June 26, the U.S. House approved HR 2454 by a vote of 219-212. Officially known as the American Clean Energy
& Security Act of 2009 (ACES), the bill establishes a cap-and-trade system
that would limit carbon dioxide
emissions from power plants, vehicles and factories – essentially impacting all
sectors of the economy.
The U.S. Senate Environment and Public Works Committee
approved a bill that would also implement a cap and trade system. That proposal has not been acted on by the
full Senate.
Q. It seems like we are hearing less about cap-and-trade lately. What is Congress working on?
A. Right now, Congress is evaluating what carbon reduction options
are politically possible. Cap-and-trade
is not dead by any stretch of the imagination.
However, in an election year and a time when the economy is still
uncertain, the risk of economic and political fallout from such a massive
proposal may be too great.
The new focus appears to be on developing legislation
that will address carbon emissions by encouraging conservation and
efficiency. Congress is exploring
mandates such as a renewable generation requirement for utilities and loans for
residential and commercial efficiency improvements. Almost all the proposals are focused on
incentives to encourage renewable generation and the hope that green jobs will
be created.
Q. Is the President still a major advocate of cap-and-trade
legislation?
A. The President wants to put a price on carbon emissions but he
didn’t use the term cap-and-trade in his 2010 State of the Union address. This is what President Obama said:
“I know that there are those who disagree with the overwhelming
scientific evidence on climate change. But -- but here's the thing. Even if you
doubt the evidence, providing incentives for energy efficiency and clean energy
are the right thing to do for our future, because the nation that leads the
clean-energy economy will be the nation that leads the global economy, and America must be
that nation.”
Still, cap and trade remains a goal as the Adminstration
included revenues from such a proposal in the 2011 budget submitted to
Congress.
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