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A few days ago, the EPA unveiled its own analysis of the controversial bill [PDF] with a greenhouse gas cap-and-trade program as its centerpiece. The analysis rebukes claims made in recent days from Republican opponents that a cap-and-trade, or "cap-and-tax," as they've taken to calling it, will cost American households $3,100 a year. (The MIT authors of the study used as the basis for this claim objected to the interpretation.)
According to the EPA analysis, the Waxman-Markey bill would cost U.S. households between $98 and $140 if the revenue from auctioning off carbon permits in a cap-and-trade were returned to consumers. Electricity rates would rise 22 percent in 2030.
The overall goal behind Waxman-Markey is to drive down greenhouse gas emissions in the U.S. 20 percent below 2005 levels by 2020, and by about 80 percent by 2050 in order to avoid the worst impacts from climate change.
Renewable energy penetration would grow by 150 percent over the next 20 years or faster because of the bill's renewable energy standard, the analysis predicts. Carbon capture and storage would go online by 2015.
The analysis pegs the price of carbon dioxide emissions at between $13 and $17 per ton in 2015. But these prices would increase dramatically by 96 percent is international offsets were excluded from the plan.
The bill, however, notably leaves out details of how many permits will be auctioned off, and what will be done with the proceeds.
The EPA presented the finding at the bill hearings, casting the bill as a "jobs bill," not a "job-killer," but judging by reports, the bill faces an uphill battle from opposition from Republicans, as well as some Democrats, particularly those from states dependent on cheap but dirty coal.
Ironically, as climate change bill supporters and opponents wrangle over its potential benefits and pitfalls, the first wave of workers is attending energy efficiency training programs in the Northeast, Doug Struck from the Daily Climate reports. The programs are funded by proceeds from the Regional Greenhouse Gas Initiative (RGGI), the country's first mandatory cap-and-trade program for energy producers in 10 Northeastern and Mid-Atlantic states.
Wind turbine photos CC-licensed by Flickr users Scott Ableman and Neil-Mack.
Business support for climate legislation
Tilde Herrera's breakdown of the Waxman-Markey draft climate bill outlines some of the very reasons that businesses like Timberland support federal climate change legislation. For too long, both businesses and individual consumers have not paid for their impacts on the environment - and we cannot continue to undervalue (or perhaps completely ignore) the reality of environmental challenges our society faces. In the short term, it may seem like we would all pay more for energy; however, in the long term, putting a price on carbon and other environmental "externalities" will help the economy grow sustainably. While there are many details that have yet to be worked out regarding this bill's robustness, strict carbon legislation are needed. This is one of the reasons Timberland joined BICEP, a coalition of consumer-facing brands committed to leveraging our business influence to help bring about policy change in the U.S. We support 100% auction of carbon allowances, but legislators must be careful to not create a trading scheme that would have the same results as the EU's failed market. Time is short - but the imperative is great to bring about such policy change.
- Beth Holzman, The Timberland Company
The EPA announcement
The EPA announcement is a welcome one and it has been long time coming. We must slow the effects of climate change and that means reducing emissions. You cannot manage what you do not measure, so the absolute first order is to establish the baseline carbon footprint--at the organizational (corporate et al) level, municipal level, regional, state and national level. Then and only then can we begin to reduce our emissions. If anyone is looking for resources to help them prepare for the EPA reporting rules, CSA (World Secretariat for the development of ISO 14064, an international carbon accounting standard) has developed a suite with the goal of 'carbon performance made simple' that includes an independent ghg registry, training, advisory services to help measure and manage the footprint, standards and personnel certification for carbon consultants, ghg quantifiers and ghg verifiers.