A deal has been done between the Democrats in the House driving for a strong, aggressive, meaningful climate change and energy bill and those who are fearful for and/or protective of the special interests of the big utilities, the oil & gas industry, the auto manufacturers and some other heavy industries. The “discussion draft” of the bill that Energy and Commerce Committee Chairman Henry Waxman and Ed Markey, chair of the Energy and Environment subcommittee, released at the end of March pointed toward some quantum leaps forward, but left the famous 600-pound gorilla at liberty: the question of whether to auction GHG-pollution allocations or make them freebies. The deal lets a percentage of these be distributed for free.
This advisory from the Energy and Commerce Committee describes the allocation of allowances provision to “major energy-intensive, trade-exposed industries.” Waxman said: “We are establishing strong protections to ensure America’s industrial capacity can thrive without being disadvantaged by overseas competition.” There are also agreements for protecting the auto industry and on renewable electricity and energy efficiency standards. Markey said of the latter agreement, “This clean energy standard will increase the power we use from the sun, wind, and earth, all without increasing electricity prices.” Here is a useful “factbox” from Reuters on the bill.
These provisions are not as strong as many might like. (That includes me.) The renewables and efficiency standard, for instance, is a combined standard: “By 2020, utilities would be required to obtain 15% of their electricity from renewable energy sources and demonstrate annual electricity savings of 5% from energy efficiency measures.” Others, the EU notably, are shooting higher. The EU has called for 20% of power from renewables and a 20% increase in efficiency by 2020, along with a 20% reduction of GHG (from 1990 levels). Too bad the EU thinks it can do that and the US doesn’t.
The full committee is going into session next week to finalize this bill. Speaker Pelosi wants the legislation passed this year. President Obama had nothing but praise for the work of the Energy and Commerce Committee. See this from Greenwire via the “NY Times.” Obama said “I want to take a moment … just to congratulate Chairman Waxman and the Energy and Commerce Committee Democrats, who’ve made such extraordinary progress in reaching a deal on comprehensive energy reform and climate legislation.” The Senate, of course, is going to be a whole other kettle of fish.
One of the top analysts on climate change and energy, Joe Romm, had a thorough analysis, in two parts, of the draft legislation. Paraphrasing Stanley Kubrick, he writes, courtesy of the indispensable Worldchanging, about “How I Learned To Stop Worrying And Love Waxman-Markey,” Part 1 and Part 2. (You should also check out Romm’s provocative I Predict U.S. Carbon Dioxide Emissions Peaked In 2007! I hope he’s right.)
I think there is some considerable reason to be optimistic, not only on federal legislation, but on the whole clean energy gestalt. I have noted, over the past two years plus at this blog, that there are startling technological, business and political breakthroughs happening all over the place, all the time. I do think this extends to the sociological in that people are finally starting to get sustainability. I do think we’re getting there and moving this particular critical bit of legislation forward is a great step. Let’s get this thing passed in the House and then concentrate on the Senate. It will take a lot of will power but it’s there and just needs to be tapped and properly focused. Hey, that’s not unlike what we need to do on renewable energy. Coincidence?