WASHINGTON, D.C. —
U.S. President Barack Obama called on members of Congress to pass a "historic" climate change bill tomorrow that will open the door to a new clean energy economy.
Speaking from the Rose Garden today, the president called the American Clean Energy and Security Act of 2009 (ACES) a chance to curb greenhouse gas pollution blamed for climate change while also significantly boosting long-term employment and business opportunities in the U.S.
“Make no mistake: This is a jobs bill,” President Obama said.
Implementing the legislation, also known as the Waxman-Markey bill, will cost American households the equivalent of a postage stamp per day, the president said. He disputed those who argue the science is unsettled and the transition will sacrifice U.S. economic growth.
“We’ve been talking about this issue for decades,” President Obama said. “Now is the time to act.”
Three analyses released over the past week confirm the bill will cost far less than some predictions, although the cost estimates vary. A U.S. Environmental Protection Agency (EPA) analysis released Tuesday concludes the overall impact of the energy efficiency provisions in the bill would cost American households between $80 and $111 per year. That breaks down to between 22 cents and 30 cents per day.
A report (PDF) released last week by the Congressional Budget Office estimated the bill would cost American households $175 per year by 2020.
Another analysis released Wednesday by the American Council for an Energy-Efficient Economy (ACEEE) predicted U.S. households would enjoy cumulative savings of about $1,050 by 2020 under the bill due specifically to its energy efficiency provisions; by 2030, the savings could reach $4,400. The Washington, D.C.-based nonprofit estimates the bill may generate more than 300,000 jobs from the energy efficiency provisions. By 2030, the total of new jobs could reach 770,000, according to the analysis, which only considers the energy efficiency provisions and some emissions allowances in the legislation and not the entire bill. It is also based on the newest iteration released Wednesday.
The new version of the bill includes several concessions made to appease farm interests worried about its economic impact on the agricultural industry. Bill co-author Henry Waxman (D-Calif.) struck a deal with Collin Peterson (D-Minn.), the chairman of the Agriculture Committee, to allow the Dept. of Agriculture to oversee the carbon offset program that will reward those who change their farming practices to avoid or reduce emissions. The EPA will have an as-of-yet undetermined advisory role.
Waxman also got the EPA to back off its intention to include indirect land use changes in its lifecycle calculation of biofuels. The corn ethanol industry claims they are unfairly penalized because the calculation takes into account land clearing and deforestation occurring in other countries to plant biofuel crops. Under the compromise reached this week, the EPA will study indirect land use for five years.
The bill aims to reduce greenhouse gas emissions 17 percent below 2005 levels by 2020, and by 80 percent by 2050, largely through its centerpiece: a cap-and-trade program that forces industries to pay for the right to pollute.
The bill has the support from a broad range of interests, President Obama pointed out, including labor, consumer interest, business and environmental groups.
Image CC licensed by Flickr user jurvetson.