Waxman-Markey Climate Bill
"The Waxman-Markey Climate bill is the common name for the American Clean Energy and Security Act of 2009 (ACES), sponsored by Henry Waxman (Democrat of California) and Ed Markey (Democrat of Massachusetts). The wide-ranging energy and climate bill aims to create clean energy jobs, save consumer energy costs, increase America’s energy independence, and cut global warming pollution. The final version is scheduled to be voted on by the House Committee on Energy and Commerce by Memorial Day.
"The legislation has four titles: Clean Energy, Energy Efficiency, Reducing Global Warming Pollution, and Transitioning to a Clean Energy Economy. Major elements of the bill include a requirement for 25% of electricity to come from renewable fuels by 2025; Carbon Capture and Storage incentives; smart grid and electrical car provisions; higher energy efficiency standards for buildings, lighting, and appliances; a Cap and Trade program; reduction of global warming gases by 83% by 2050; programs to compensate energy intensive industries for costs incurred under the bill, and green job creation.
EPA analysis
On February 27, 2009 the House Energy and Commerce Committee Chairman Waxman and Energy and Environment Subcommittee Chairman Markey requested that EPA estimate the economic impacts of the Waxman-Markey Discussion Draft.
The EPA analysis was released on April 20, 2009. The report focuses on the bill’s proposed cap-and-trade mechanism and suggests that the share of low-carbon and zero-carbon energy sources would rise to 26 percent of the nation’s energy mix by 2030, and could reach 46 percent by 2050 under the plan. The EPA estimates that the share would remain at 14 percent without policy such as proposed in the ACES legislation.
Criticism
Critics of the Waxman-Markey bill cite numerous offsets and provisions for energy companies, including two billion tons of pollution offsets (equal to a quarter of all U.S. emissions), and exemptions on emissions for coal plants currently under construction by companies such as Duke Energy.[1][2]
As the bill works its way through Congress, environmentalists are concerned that amendments have made it too favorable to the coal industry. In May, Representative Rick Boucher, a Democrat representing coal counties in Virginia, announced that he had worked out pro-coal changes to the bill with Waxman and Markey, including:
UMWA International President Cecil E. Roberts released a statement praising the changes and taking credit for the allowances for utilities, which he said had followed from a recommendation by the Union. Roberts expressed his thanks to Congress, saying, "Rep. Boucher and others in Congress have fought hard to protect the interests of coal miners and all working families. We look forward to working closely with him as the legislation moves through the legislative process."[4]
Brent Blackwelder, president of Friends of the Earth, praised the efforts by Waxman, Markey, and others to develop global warming legislation, but added that the bill had been "corrupted by members of Congress backed by oil and coal interests."[3]
"The Waxman-Markey Climate bill is the common name for the American Clean Energy and Security Act of 2009 (ACES), sponsored by Henry Waxman (Democrat of California) and Ed Markey (Democrat of Massachusetts). The wide-ranging energy and climate bill aims to create clean energy jobs, save consumer energy costs, increase America’s energy independence, and cut global warming pollution. The final version is scheduled to be voted on by the House Committee on Energy and Commerce by Memorial Day.
"The legislation has four titles: Clean Energy, Energy Efficiency, Reducing Global Warming Pollution, and Transitioning to a Clean Energy Economy. Major elements of the bill include a requirement for 25% of electricity to come from renewable fuels by 2025; Carbon Capture and Storage incentives; smart grid and electrical car provisions; higher energy efficiency standards for buildings, lighting, and appliances; a Cap and Trade program; reduction of global warming gases by 83% by 2050; programs to compensate energy intensive industries for costs incurred under the bill, and green job creation.
EPA analysis
On February 27, 2009 the House Energy and Commerce Committee Chairman Waxman and Energy and Environment Subcommittee Chairman Markey requested that EPA estimate the economic impacts of the Waxman-Markey Discussion Draft.
The EPA analysis was released on April 20, 2009. The report focuses on the bill’s proposed cap-and-trade mechanism and suggests that the share of low-carbon and zero-carbon energy sources would rise to 26 percent of the nation’s energy mix by 2030, and could reach 46 percent by 2050 under the plan. The EPA estimates that the share would remain at 14 percent without policy such as proposed in the ACES legislation.
Criticism
Critics of the Waxman-Markey bill cite numerous offsets and provisions for energy companies, including two billion tons of pollution offsets (equal to a quarter of all U.S. emissions), and exemptions on emissions for coal plants currently under construction by companies such as Duke Energy.[1][2]
As the bill works its way through Congress, environmentalists are concerned that amendments have made it too favorable to the coal industry. In May, Representative Rick Boucher, a Democrat representing coal counties in Virginia, announced that he had worked out pro-coal changes to the bill with Waxman and Markey, including:
- Changing the near-term requirement for emissions reductions to 17 percent below 2005 levels by 2020, instead of the original mandate of 20 percent reductions over the same period. Coal industry officials hope that the lesser reductions will allow them more time to develop "clean coal" technologies.
- Allotting $1 billion per year for the next ten years to fund the development of carbon capture and storage technology.
- Giving power companies most of their greenhouse gas emissions permits for free.
- Giving "bonus emissions" to utilities that capture and store their carbon emissions. United Mine Workers of America (UMWA) estimates the additional allowances are worth over $180 billion between now and 2050.[3]
UMWA International President Cecil E. Roberts released a statement praising the changes and taking credit for the allowances for utilities, which he said had followed from a recommendation by the Union. Roberts expressed his thanks to Congress, saying, "Rep. Boucher and others in Congress have fought hard to protect the interests of coal miners and all working families. We look forward to working closely with him as the legislation moves through the legislative process."[4]
Brent Blackwelder, president of Friends of the Earth, praised the efforts by Waxman, Markey, and others to develop global warming legislation, but added that the bill had been "corrupted by members of Congress backed by oil and coal interests."[3]
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