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May 22, 2009
On May 21, the House Energy and Commerce Committee voted in favor of the American Clean Energy and Security Act (H.R. 2454) by a margin of 33 to 25. The bill was introduced by Committee Chairman Henry Waxman (D-CA) and Subcommittee for Energy and Environment Chairman Ed Markey (D-MA).
"Today the Committee took decisive and historic action to promote America's energy security and to create millions of clean energy jobs that will drive our economic recovery and long-term growth," said Chairman Waxman. "This bill, when enacted into law this year, will break our dependence on foreign oil, make our nation the world leader in clean energy jobs and technology, and cut global warming pollution. I am grateful to my colleagues who supported this legislation and to President Obama for his outstanding leadership on these critical issues."
Several notable changes were made to the original draft via negotiations before the committee markup and vote. A key portion of the bill would create a national cap and trade program that, over time, lowers the amount of greenhouse gases (GHGs) emitted by power plants, manufacturers and oil refiners. Rep. Waxman originally proposed a cap on emissions of 20 percent below 2005 levels by 2020, but Democrats negotiated a reduced target of 17 percent by 2020, while maintaining a long-term target of 83 percent below 2005 levels by 2050. The bill did not initially designate whether permits to emit GHGs would be auctioned off or given away for free, but an agreement was made to give away 85 percent of the permits to vulnerable industries such as steel, cement and glass, before transitioning to 100 percent auction. The bill also contains a requirement that states produce 20 percent of their electricity from renewable sources by 2025, with five percent of that requirement allowed to be met through energy efficiency gains. This is lower than the original proposal of 25 percent by 2025.
Meanwhile, the Senate Energy and Natural Resources Committee has been debating various pieces of legislation that Chairman Jeff Bingaman (D-NM) plans to integrate into a comprehensive energy bill (not including a carbon pricing mechanism such as cap and trade). On May 19 and 21, the committee considered amendments to legislation on nuclear waste , a renewable electricity standard , the Strategic Petroleum Reserve , and building efficiency .
To provide Congressional staff with information on the technologies and policies that will play integral roles in helping the country meet its energy and climate goals, the Environmental and Energy Study Institute and other members of the Sustainable Energy Coalition held an event on Capitol Hill on May 14 that featured over 50 businesses, trade associations, government agencies and non-profit policy organizations. Several hundred people attended the 12th Annual Congressional Renewable Energy & Energy Efficiency EXPO + Forum to learn about the latest technological developments and near-term projections for the industry from exhibitors and guest speakers, including Reps. Vernon Ehlers (R-MI), Chris Van Hollen (D-MD), and Roscoe Bartlett (R-MD).
When Congress resumes work after the week-long Memorial Day recess, H.R. 2454 will be referred to several other House committees, with the goal of reaching the House floor for debate in July. The Senate Energy and Natural Resources Committee will continue to markup energy legislation. The Senate Environment and Public Works Committee, chaired by Senator Barbara Boxer (D-CA), is expected to begin working on a cap and trade bill soon. EESI has several upcoming briefings that will educate Congressional staff on issues relevant to these pending bills -- including electric transmission , renewable biomass thermal energy , and lessons learned from state-level energy and climate plans .
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