Next Step Toward Copenhagen: Sens. Kerry and Boxer Introduce New Climate Change Bill

GREEN IS GOOD
by Margaret Smith

Senate Democrats Barbara Boxer (D-CA) and John Kerry (D-MA) pushed forward in America's fight against global warming today when they finally introduced the Clean Energy Jobs and American Power Act, a sweeping new bill specifically aimed at combating climate change in the United States.

The bill, which has been in the works for months now, is a revision of the American Clean Energy and Security Act of 2009 that was narrowly passed by the House this June. Some of the key changes include steeper emission cuts (a 20% reduction from the 2005 levels by 2020), stronger oversight of carbon markets, new incentives for natural gas and nuclear energy, and a so-called price collar on carbon emissions, one development that has both environmentalists and climate policy experts thrilled.

There are two types of carbon collars: a soft collar and a hard collar. A hard carbon collar sets the bar for both how cheap and how expensive at which carbon permits can be priced. A soft collar, on other hand, just sets a maximum price standard. When prices reach that maximum price, the EPA can then auction off more premiums from a reserve. This is all a part of what Kerry and Boxer call "Pollution Reduction and Investment," a fancy term for cap-and-trade initiatives.

The Kerry-Boxer bill uses a soft collar and sets the maximum price at $28 per metric ton. This will effectively stabilize costs by preventing them from getting too high or too low. Many say that this is not only good for the industry but will also hopefully give the bill a better chance of passing in the Senate. Climate Progress calls this is a "monumental improvement" over the House bill, saying:

Fence-sitting Senators and industries can legitimately see the Carbon Collar as achieving stronger cost-containment than their analysis suggests the House bill now provides, including protection against speculators running the permit price up, while progressives can legitimately see it as achieving better environmental outcomes than their analysis suggests the House bill now provides. Win-win.

This number will start rising 5 percent plus inflation each year, and in 2018 the ceiling price will rise 7 percent plus inflation each year, effectively making it more expensive to pollute.

At a rally on Capital Hill introducing the bill this morning, Boxer said that the new act "addresses the major challenges of our generation," including protecting the earth from dangerous pollution, creating policies that will lead millions of new jobs and getting America back in the game and in control of our own energy future.

"We know clean energy is the ticket to strong, sustainable growth -- it's right here in front of us, in the ingenuity of our workers and the vision of our entrepreneurs," said Boxer, who is the chairwoman of the Environment and Public Works Committee. "We must seize this opportunity, or others will move ahead."

Kerry made the same arguments, also saying that the bill is "ultimately... about keeping Americans safe." Using new energy sources can help the country stop relying so much on foreign oil, and in the process, give us more security.

"This is the beginning of one of the most important battles we will ever face as legislators and citizens," he said.

The introduction of this bill is just the first step for both the Senate and the Obama Administration in the fight against climate change, and in the next couple of months there remains to be a lot of work done in the Senate.

It's one step that much of the world has been waiting for America to take, however. After showing high hopes and dedication to fighting climate change, yet still displaying a lack of clear planning and concrete action at both the UN Climate Change Summit in New York and the G20 Summit in Pittsburgh in recent weeks, many have been waiting for the United States to do something. And with the UN Climate Change Conference in Copenhagen less than three months away, time's been running out.

The Earth can't wait, either. A report was just released by the United Kingdom's Met Hadley Centre for Climate Prediction saying that global temperatures could increase by 7.3 degrees Fahrenheit by 2060. Some regions could even see a 10 degree rise or higher, causing droughts, floods and increasing sea levels in different areas around the world.

President Obama said that his administration was "deeply committed" to passing the bill in a statement he gave earlier today, and congratulated Sens. Boxer and Kerry for all their work.

"I applaud Chairmen Kerry and Boxer for their leadership on comprehensive energy reform. With the draft legislation they are announcing today, we are one step closer to putting America in control of our energy future and making America more energy independent," he said. "I commend Senators Boxer and Kerry for their work and look forward to signing comprehensive energy legislation that addresses this urgent challenge."

GREEN IS GOOD