House Ways and Means Committee

Addressing Price Volatility in Climate Change Legislation

1100 Longworth
Thu, 26 Mar 2009 14:00:00 GMT

During the 110th Congress, the Committee on Ways and Means began a series of hearings on climate change. In the first hearing, the Committee heard testimony that human greenhouse gas emissions are having an adverse impact on our planet’s climate. In the second hearing, the Committee heard testimony from numerous witnesses recommending that Congress implement revenue measures (e.g., auction-based cap-and-trade proposals or carbon taxes) that would reduce human greenhouse gas emissions. In connection with the development of these revenue measures, witnesses at this hearing also encouraged the Committee to (1) promote a comprehensive global effort to address climate change and to ensure a level regulatory playing field for U.S. manufacturers, (2) mitigate higher energy costs borne by consumers, (3) maximize the impact that climate change legislation will have on growing the U.S. economy, and (4) maintain the competitiveness of U.S. businesses, farmers and workers.

During the 111th Congress, the Committee continued this series of hearings by holding a hearing on the scientific objectives of climate change legislation. This hearing provided a discussion of the goals that climate change legislation should seek to achieve from a scientific perspective over both the short term and the long term. Furthermore, the Subcommittee on Income Security and Family Support held a hearing on protecting low- and moderate-income families while curbing global warming, and the Subcommittee on Trade has announced a hearing on the trade aspects of climate change legislation.

In announcing this hearing, Chairman Rangel said, “As we develop climate change legislation, we must ensure that the program is structured to achieve specific environmental goals at the lowest possible cost to the economy and consumers.”

FOCUS OF THE HEARING:

The hearing will focus on a discussion of the ways that climate change legislation can be designed to reduce or eliminate price volatility while still achieving specific science-based environmental objectives.