EPA Analysis: Waxman-Markey Could 'Play a Critical Role in the American Economic Recovery and Job Growth'
From the Wonk Room.play a critical role in the American economic recovery and job growth.” The initial EPA analysis, based on the draft of the American Clean Energy and Security Act (ACES) released by Rep. Henry Waxman (D-CA) and Rep. Edward Markey (D-MA), looks only at the effects of the cap-and-trade “market-based emissions program,” without modeling the effects of the complementary renewable energy and energy efficiency standards in this comprehensive legislation. Despite the limited review, the EPA has found that Waxman-Markey would “enable American workers to serve in a central role in our clean energy transformation”:
The draft bill would establish a wide range of policies to promote the development and deployment of new clean energy technologies that would fundamentally change the way we produce, deliver, and use energy. The bill would: (1) advance energy efficiency and reduce reliance on oil; (2) stimulate innovation in clean coal technology to ensure that coal remains an important part of the U.S. energy portfolio by capturing harmful greenhouse gas emissions before they enter the atmosphere; (3) accelerate the use of renewable sources of energy, including biomass, wind, solar, and geothermal; (4) create strong demand for a domestic manufacturing market for these next generation technologies that will enable American workers to serve in a central role in our clean energy transformation; and (5) play a critical role in the American economic recovery and job growth – from retooling shuttered manufacturing plants to make wind turbines, to using equipment and expertise in drilling for oil to develop clean energy from underground geothermal sources, to tapping into American ingenuity to engineer coal-fired power plants that do not contribute to climate change.The ACES Act does not address the question of how allocate the revenues of a carbon market auction. Industry executives and conservative allies like Sen. John McCain (R-AZ) are calling for free giveaways to polluters. However, the EPA analysis finds that polluter giveaways are “highly regressive.” A full auction of permits and equitable returns, however, allows for working families to come out ahead:
Assuming that the bulk of the revenues from the program are returned to households, the cap-and-trade policy has a relatively modest impact on U.S. consumers. . . . Returning the revenues in this fashion could make the median household, and those living at lower ends of the income distribution, better off than they would be without the program.
The EPA modeling finds that a significant proportion of the required emissions reductions in Waxman-Markey are achieved through the use of one billion tons of international offsets a year. Because of the use of offsets, the U.S. electricity sector is expected to produce 10% fewer greenhouse gas emissions from 2010 to 2025, although the overall cap declines by over 25 percent.
The EPA analysis confirms that the American Clean Energy and Security Act will create jobs in the clean energy industry, benefit consumers, slash oil use, and cut pollution. This analysis disproves the false claims made by those who want to continue our existing energy policies.The Environmental Defense Fund:
EPA’s new analysis shows that the market-based cap on carbon contained in the American Clean Energy and Security Act can be met for $98 to $140 per year for the average American household. Those estimates only consider the costs of reducing global warming pollution, and do not take into account the benefits of action.
From the Wonk Room.
Yesterday, the Energy Department proposed lighting standards for fluorescent and incandescent lamps that could “save consumers and businesses almost $40 billion between 2012 and 2042 and eliminate the need for as much as 3,850 megawatts of power generating capacity by that date.”
Rep. Ed Markey (D-MA), speaking at an MIT conference on a clean-energy economy yesterday: “We have to set aside a certain amount of carbon credits to ensure that the steel and the paper and other trade-sensitive, energy-intensive industries are not exploited in the near term by the Chinese and others.”
The National Marine Fisheries Service announced it “will protect habitat for belugas in Alaska’s Cook Inlet, despite a lawsuit from Gov. Sarah Palin (R) seeking to wrest the whales from federal management.”
Chairman Edward J. Markey will host President Obama’s top climate, energy and science advisers along with other energy experts at a forum at MIT on Monday, April 13 to discuss the future of clean energy in national policy and in the Massachusetts economy. They will discuss clean energy solutions for creating jobs, improving our national security and protecting our planet from global warming. Last week, Rep. Markey released draft legislation that will be the main congressional vehicle to push clean energy technologies and create millions of new jobs.Speakers
- Chairman Edward J. Markey (D-Malden), Chairman of the Select Committee on Energy Independence and Global Warming and Energy and Environment Subcommittee
- Carol Browner, Assistant to the President for Energy and Climate Change
- John Holdren, Assistant to the President for Science and Technology
- Ernest J. Moniz, Professor of Physics and Cecil and Ida Green Distinguished Professor, MIT
- Dr. Susan Hockfield, President, MIT
- Daniel Yergin, Pulitzer Prize-winning author and Chairman of Cambridge Energy Research Associates
- Massachusetts clean energy CEOs and others
Wong Auditorium, Tang Center, Building E51, Massachusetts Institute of Technology, Cambridge, Massachusetts
More than two dozen organizations, including well-respected groups from the research, advocacy, faith-based, labor and civil rights communities, have come together to ensure that emerging climate legislation protects and provides opportunity for society’s most vulnerable individuals and families. The Climate Equity Alliance unites around shared concerns about the effects of climate change and climate change legislation on low- and moderate-income households. Alliance members believe climate legislation should both help to build an inclusive green economy — providing pathways to prosperity and expanding opportunity for America’s workers and communities — and ensure that low- and moderate-income people receive relief from the higher energy costs that will result, so that they are not pushed into poverty or made poorer.
This conference call for reporters will unveil the Climate Equity Alliance and present the principles drawing these groups together, with particular attention to how policymakers should move forward following the draft legislation introduced by Representatives Henry Waxman (D-CA) and Edward Markey (D-MA).Speakers:
- Robert Greenstein, Executive Director, Center on Budget and Policy Priorities
- Phaedra Ellis-Lamkins, CEO, Green For All
- Gerry Hudson, Executive Vice President, SEIU
- Other speakers TBA
Click here to register for this conference call.CLIMATE EQUITY ALLIANCE MEMBERS INCLUDE:
- Green for All
- Center on Budget and Policy Priorities
- Center for American Progress
- Service Employees International Union
- National Hispanic Environmental Council
- Oxfam America
- First Focus
- Economic Policy Institute
- Redefining Progress
- US Action
- Coalition on Human Needs
- The Workforce Alliance
- Center for Law and Social Policy
- The Washington Office of Public Policy, Women’s Division, United Methodist Church
- Union for Reform Judaism
- National Low Income Housing Coalition
- Policy Link
- Citizens for Tax Justice
- Enterprise Community Partners