Climate and energy

Couldn’t find a summary of the legislation that told me what I wanted to know. So, I put together this one. (Remember, as soon as the hearings process begins, this info will quickly date.)

Helpful .pdf links:

Overview of the bill
Summary of the bill
Section by section bill summary
Full bill text

In late September, Senators John Kerry and Barbara Boxer introduced the Clean Energy Jobs and American Power Act (CEJAPA). This bill would enact major climate and energy legislation for the United States. Earlier this year, the House passed its own version, the American Clean Energy And Security (ACES) Act (also known as Waxman-Markey).

The Senate legislation will be addressed and amended by several key committees this fall. As yet, the Senate bill covers less ground than the House bill. There are several temporary “placeholder” measures in the bill – such as language on allowances, trade protection, and carbon offsets – where Senators Boxer and Kerry expect extensive negotiations to take place before any final language is decided.

KEY FEATURES OF CEJAPA

Emissions Reduction Targets: CEJAPA contains a steadily declining cap on carbon pollution, 20 percent from 2005 levels by 2020 and an 83 percent reduction below 2005 levels by 2050. The House bill calls for a 17 percent reduction by 2020 and 83 percent reduction by 2050.

Cap and Trade and Allowances: Similar to the House bill, CEJAPA provides for cap and trade (but CEJAPA calls it “pollution reduction” instead of cap and trade).

Unlike the House bill, CEJAPA does not yet detail how the allowances would work – ie, what percentages will be allocated to protecting consumers from energy spikes, helping carbon-intensive industries and utilities transition to clean energy, and spurring research and investment in energy efficiency and clean energy technologies. In the House bill, a small percentage of the consumer protection allowances also goes to agricultural producers.

In order to protect U.S. markets, the House bill also authorizes tariffs on carbon-intensive imports from countries without emissions controls. Some version of this is expected to appear in the final Senate legislation.

Clean Air Act: CEJAPA maintains performance standards and certain other tools in the existing Clean Air Act. The House bill eliminates some of these provisions. Opinions differ on exactly how effectively CEJAPA’s new source performance standards reduce net emissions under the cap. CEJAPA also establishes performance standards for coal-fired power plants permitted in 2009 or after, and different standards for those permitted in 2020 or after.

Adaptation: CEJAPA represents the most comprehensive planning effort yet for how the U.S. will adapt to climate change, which is already affecting the nation’s water, oceans, and other natural resources. Impacts to water resources are of special concern – sea level rise, increased droughts, increased demand for water, and more frequent extreme storm events. CEJAPA requires states and the federal government to create adaptation plans and provides funding for their implementation.

Energy Efficiency: CEJAPA includes various provisions for improving energy efficiency in buildings, factories, and transportation, including development of standards for a national energy efficiency building codes for residential and commercial (but no timeline is mandated).

Renewable Energy: Provides grants and assistance for up to 50% of the financing in developing renewable energy projects in states that have mandatory Renewable Energy Standards, if that project helps the state meet its target.

Conventional Energy Sources. Provides for carbon capture and sequestration (CCS), including national regulations for geological sequestration sites and associated liability. Compared to the House bill, CEJAPA also offers more incentives for natural gas. CEJAPA does contain some provisions on nuclear, but many parties expect this portion to be expanded.

Transportation: Authorizes investments into clean energy vehicles made in America, institutes emissions standards and reductions, and helps states and cities with long-range transportation planning.

Offsets: Like the House Bill, CEJAPA sets up a carbon credits offset program for agricultural practices that sequester carbon in the soil (no-till) or reduce greenhouse gas emissions (methane capture).

However, CEJAPA leaves the program administration up to the discretion of the President and does not define clear roles for the EPA and the USDA. The House version puts the USDA in charge. CEJAPA does establish an office in the Justice Department to investigate the integrity of the offsets, and limits the number of offsets that come from overseas.

WHAT’S MISSING – RES AND TRANSMISSION

From the Kansas perspective, there are two gigantic, glaring omissions in the Senate version – a federal Renewable Electricity Standard (RES), and provisions for federal transmission planning. To some extent, these items exist in other bills that have passed out of committee, and could potentially be combined with CEJAPA on the Senate floor.

Unfortunately, neither the RES provisions passed by the House in ACES, nor those passed by the Senate Energy and Natural Resources Committee in June, go far enough. They do not increase business as usual for renewables in the country, and may even undercut the status quo.

The RES would have to be significantly strengthened to 25% or 20% by 2025 to increase renewables production and attract the necessary transmission upgrades to export the Midwest’s extensive wind resources.

ALSO INCLUDED IN CEJAPA

A bit of a laundry list (and this is not comprehensive of all the extras):

• Establishment of an Office of Consumer Advocacy within FERC
• Information gathering on how climate change is destabilizing U.S. interests abroad
• Grants for start-up clean energy businesses and funds for state recycling programs that reduce GHG emissions
• Transition funds for workers moving to green jobs, or away from carbon-heavy ones
• Research dollars for ag and forestry offsets, and advanced biofuels

— posted by Maril Hazlett, www.climateandenergy.org