SUMMARY: CLIMATE & ENERGY LEGISLATION

November 2009

Three primary pieces of legislation are part of the debate in Congress, one in the House of Representatives that passed in June and two primary bills currently under consideration in the Senate. When the Senate passes its climate & energy legislation, a few members from both chambers will reconcile the differences “in conference” followed by a final vote on a law that President Obama will need to sign. Passage of the legislation in 2009 is very unlikely, but 2010 will see the issues front and center. All proponents of new policy in Washington strongly agree that Congress needs to hear from clean tech business leaders frequently with requests to pass legislation. Click here for congressional contact information.

I.   HOUSE CLIMATE & ENERGY BILL (“ACES Act” / “Waxman-Markey bill”)

Key Date: Passed June 2009 by House (219 to 212)

Authors: Rep. Henry Waxman, Chairman of House Energy & Commerce Cmte; Rep. Ed Markey, Chairman of Cmte on Energy Independence & Global Warming

More Info: www.pewclimate.org/acesa

Ø      Cap-and-Trade

Ø      Greenhouse Gas Reductions. 17 % reduction from 2005 levels by 2020 & 83 % by 2050

Ø      US Renewable Energy Electricity Standard (RES) of 20% by 2020. Qualifying sources: energy efficiency, wind, solar, ocean, geothermal, biomass, biogas and biofuels derived exclusively from eligible biomass, landfill gas, hydrokinetic, waste-to-energy, wastewater-treatment gas, coal-mine methane, and new hydro at post-1992 dams

Ø      R&D of $190 billion to energy efficiency, renewables, carbon capture & storage, electric vehicles

Ø      Transmission Grid Supports.

Ø      Energy Efficiency for Buildings, Lights, Appliances.

Ø      Green Bank Financing Office.

Ø      Carbon Offsets Program.

Ø      Coal Plant Pollution & CCS Standards.

Ø      Protections & Cost Supports for New Technology Development, Consumers, & Some Industries.

II.  SENATE CLIMATE BILL ("Clean Energy Jobs & American Power Act" / “Kerry-Boxer bill”)

Key Date: legislation passed by Environment Committee, Nov. 2009

Authors: Sen. John Kerry, Senate Foreign Affairs Committee Chair & Sen. Barbara Boxer, Environment  & Public Works Committee Chair

Ø      Cap-and-Trade

Ø      Greenhouse Gas Reductions. 20 % reduction from 2005 levels by 2020 & 83 % by 2050

Ø      Carbon Offsets Program.

Ø      CCS Standards.

Ø      Nuclear & Transportation. Incentives for nuclear power plants & low-emissions transportation

Ø      Protections & Cost Supports for New Technology Development, Consumers, & Some Industries.

Ø      Key Unanswered Question: how the permits to emit carbon dioxide and other heat-trapping gases would be distributed to utilities, manufacturers, agribusiness and other interests

III.  SENATE ENERGY BILL (“American Clean Energy Leadership Act” / “Bingaman bill”)

Key Date: legislation passed by Energy Committee June 2009

Author: Sen. Jeff Bingaman, Chairman of the Senate Energy & Natural Resources Committee

Ø      US Renewable Energy Electricity Standard (RES) of 15% by 2021.  Qualifying sources: energy efficiency, wind, solar, ocean, geothermal, biomass, landfill gas, incremental hydro, hydrokinetic, waste-to-energy, and new hydro at existing dams.

Ø      Transmission “Interstate Highway System” & Grid Security.  Creates new planning system based on local, state and regional input with states taking initial lead. New security powers to Dept or Energy & FERC.

Ø      Green Bank Financing Office.

Ø      CCS R&D Funding. $6.6 billion for 10 “early mover” large-scale CCS projects

Ø      Offshore Drilling in Eastern Gulf of Mexico. Opens 3.8 billion barrels of new oil resources & 21.5 trillion cubic feet of new natural gas resources.