Preliminary Analysis of the Markey-Waxman Draft “American Clean Energy and Security Act of 2009”

Press Release

Preliminary Analysis of the Markey-Waxman Draft “American Clean Energy and Security Act of 2009”

The discussion draft of the American Clean Energy and Security Act of 2009 introduced by Rep. Henry A. Waxman (CA-30) and Rep. Edward J. Markey (MA-7) released on March 31^st is a key first step by Congress to usher America into a powerful clean energy economy that will create millions of jobs for American workers, save consumers and businesses hundreds of billions of dollars in energy costs, make our country energy independent, and limit global warming pollution. While the bill is very comprehensive, it can be even better through stronger commitment to reducing global warming emissions in the immediate future, ensuring that polluters – not taxpayers – pay for pollution, boldly moving beyond dirty coal energy, making certain that the green jobs created by the legislation are quality jobs with pathways leading to them for those who most need work, and laying out specifics on how consumers will be protected from rising energy costs.

The American Clean Energy and Security Act of 2009 would…

Usher America into a powerful clean energy economy that will create millions of green jobs for American workers in clean energy industries.
Cut waste and save billions of dollars in energy costs for consumers and businesses by increasing energy efficiency across the economy, including buildings, appliances, transportation, and industry. The enhanced Renewable Electricity Standard and Energy Efficiency Resource Standard alone will create 522,000 jobs and result in $170 billion in savings for consumers and businesses.
Reduce our dangerous dependence on foreign oil and make our country energy independent through the development and use of clean renewable energy.
Limit global warming pollution and provide strong incentives for clean companies to prosper. The bill uses the same bi-partisan approach put in place to fight acid rain in 1990, supported by the first President Bush, after which electricity rates fell 10 percent and the U.S. economy added 16 million jobs.

While the bill is very comprehensive and is the first climate legislation to reach for science-based targets to tackle global warming, it can and should be made even better to:

Make stronger commitment to boldly confront global warming in the immediate and near-future. While the bill meets the Intergovernmental Panel on Climate Change (IPCC)’s long-term target of cutting global warming gas emissions by at least 80% by 2050, its near-term goal by 2020 is a 30% reduction, which could rely heavily on emission offsets that may be unreliable in reducing global warming pollution. The near-term 2020 emission target cuts should be at least 35% below current levels with strictly limited offsets to better meet the immediate threat of global warming to our economy and national security.
Protect taxpayers from paying for polluters’ mess. There should be 100% auctions of carbon emissions to guarantee that pollutions are paid for by the polluters, not taxpayers.
Move beyond dirty coal energy. The bill relies on eventual pollution performance standards for new plants, but even with these carbon sequestration standards, coal will still be the dirtiest fuel on the planet. Since public funding for new plants with unproven CCS (“clean coal”) technology is not contingent on a high performance, the bill could funnel public money into large dirty energy projects. We will advocate for an immediate moratorium on new coal-burning plants that emit carbon pollution. Instead of funding new dirty coal plants, public funding should instead support clean renewable energy and efficiency projects that are already commercialized, proven, and affordable.
Provide opportunities and assistance to vulnerable communities. The bill should ensure that we maximize the creation of good, green-collar jobs and provide educational and job training assistance and tools necessary to pave the pathways into them, especially for workers and communities in older industries that are highly reliant on carbon based energy. In addition to new job opportunities, Low- and middle-income households must receive rebates to compensate for increased energy costs. We must also assist vulnerable communities worldwide as they adapt to the changing climate and transition into a low-carbon economy.

The Major Climate Provisions of the “American Clean Energy and Security Act of 2009”

Key Items	The Discussion Draft’s Present Language	1Sky Goals
Targets & Offsets	2020 Near-term Targets: ✔ At least 30% below 2005 levels (19% below 1990 levels), 17% of which is from the cap and the rest from avoided deforestation abroad and standards outside the cap, and via offsets. 2050 Long-term Targets: 83% below 2005 levels (80% below 1990 levels) within the cap alone. Emission Offsets vs. Direct Funding of Emission Reductions ✔ The bill allows very high levels of global warming emission offsets by polluters – 2 billion tons annually – which is around 27% of annual emissions in the U.S. What that means is that there could be no domestic global warming emissions reductions from fossil fuels for at least a decade.	Cut carbon emissions by at least 35% below 2005/current levels by 2020, equivalent to 25% below 1990 levels, in line with the IPCC, and by at least 80% by 2050. The bill’s present language meets the long-term target but should be strengthened to meet the much more important near-term target. 1Sky is also concerned with the bill’s very high levels of carbon offsets, and supports direct investments in emissions reductions rather than offsets that come in place of actually reducing fossil fuel consumption.
Auctions	The bill draft intentionally does not yet specify whether or not the carbon pollution emission permits will be auctioned. This uncertainty is not entirely discouraging, as it leaves room for it to become 100% auction to ensure that there is a price paid for pollution and that taxpayer monies are not used to clean up after polluters.	100% of the permits should be distributed via auction to ensure that there is a price paid for pollution, and that taxpayer monies are not used to clean up after polluters.
Coal	Relies on eventual performance standards for new plants. ✔ Between 2009 and 2015, there is nothing in this current bill draft other than an economy-wide cap and a 2025 retrofit date to prevent dirty new coal plants from being built. ✔ After 2015, new coal plants must sequester at least 50% of their global warming pollution, and 60% after 2020. ✔ Since public funding for new plants with CCS (a.k.a. “clean coal”) technology is not contingent on a high CCS performance, the bill could end up funneling public money into large dirty energy projects. And more funding is distributed to better-performing large-scale plants, but there’s no guarantee that what public money is funding is actually better than existing forms of energy infrastructure.	Enact an immediate moratorium on new coal-burning plants that emit carbon pollution. Instead of funding new coal plants, public monies should support renewable energy and efficiency projects that are already commercialized, affordable, and create more jobs.
Transition Investments, Domestically and Internationally	✔ A section for domestic consumer assistance is included but currently lacks specifics. ✔ The bill must position the U.S. as a leader in the international climate negotiations coming up in December. For that to happen, it is critical that the bill allocate funds to help vulnerable communities adapt to climate change, protect tropical forests, and export clean energy technology worldwide.	The bill needs specifics on providing assistance for low and middle-income families with rising energy prices, as well as key funding streams necessary to make a global warming treaty a reality. We must also assist vulnerable communities in developing countries as they transition to low-carbon economies and adapt to the changing climate.
Energy	✔ Better appliance standards and building codes. ✔ Smart grid funding. ✔ Transportation standards and funding, including strengthened Low Carbon Fuel Standard (LCFS) funds for electric vehicles and auto industry retooling, and mandates for new transportation plans and funds for infrastructure projects in major metropolitan areas. ✔ National Renewable Energy Standard (RES), including 25% renewable by 2025 with up to 5% from efficiency upgrades. ✔ National Energy Efficiency Resource Standard (EERS), including 15% electricity savings by 2020 and 10% natural gas savings by 2020.	1Sky is strongly supportive of the enhanced energy efficiency standards.

1Sky is a collaborative national campaign for strong federal action to tackle global climate change and invest in building the clean energy economy of the future. As one of the largest national campaigns in the country, 1Sky combines the force of 620 allied organizations, 201,959 committed climate advocates, 4,238 volunteer Climate Precinct Captains covering more than 394 congressional districts in 50 states, and a team of 24 including 9 organizers in 50 states working to mobilize constituent support.

For more information on 1Sky contact Adi Nochur at (301) 270-4550 x224 or Adi@1sky.org

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