Analysis Shows Climate Bill Would Cost Households 37 Cents/Day in 2020

On August 4, the Energy Information Administration (EIA), a statistical agency within the U.S. Department of Energy, released its analysis of the American Clean Energy and Security Act (H.R. 2454), the climate legislation recently passed in the House of Representatives and currently pending before the Senate. The analysis looked at the cost to American consumers through 2030 and concluded that the legislation would cost the average household $134 more in energy expenses in 2020, and $339 more in 2030. The EIA findings are similar to other earlier analyses provided by the Congressional Budget Office (CBO) and Environmental Protection Agency (EPA). Energy Secretary Steven Chu said the EIA analysis confirms the similar findings that found "we can move to a clean-energy future at a cost of less than a postage stamp per family per day." Electricity prices would likely increase 3 to 4 percent between now and 2020, but would then increase more sharply as free emission allowances in the legislation’s cap-and-trade program would begin to be phased out, the EIA concluded. The report also projects that the price of gasoline would increase 20 cents by 2020 and 35 cents by 2030. “The evidence is now overwhelming that this clean energy legislation is both affordable and effective," said Representatives Henry Waxman (D-CA) and Edward Markey (D-MA), who co-authored the bill.