Senate Democrats Unveil Climate Bill That Seeks Greater Emissions Caps

September 30, 2009 2:53 p.m. EST

Washington, D.C. (AHN) - Senate Foreign Relations Committee Chairman John Kerry (D-MA) and Environment and Public Works Committee Chairwoman Barbara Boxer (D-CA) on Wednesday unveiled a climate bill that seeks greater carbon reductions than the bill approved by the House earlier this year. The National Farmers Union criticized the measure despite being exempt from the emissions cap system, and reiterated its support for the House bill.

The Clean Energy Jobs and American Power Act aims for a 20 percent reduction of carbon pollution by 2020 from 2005 levels, and 80 percent by 2050. The reductions will be done through a cap-and-trade system, called Pollution Reduction and Investment, that will allow companies to buy and sell vouchers according to whether they want to pay for the right to keep polluting or gain the incentive for reducing emissions.

The system exempts all farmers and 98 percent of businesses, covering only the largest emitters in the nation --- initially about 7,500 facilities that account for three?quarters of nationwide carbon pollution. In contrast, the climate bill from the House will require most companies to buy carbon permits from the federal government. It seeks to reduce emissions by 17 percent in 2020, by 42 percent in 2030, and by 83 percent in 2050.The measure was passed by the House Energy and Commerce Committee in May by a vote of 33-25. The full House approved the measure a month later by a narrow 219-212 vote.

House Republicans had warned the bill would cost every American family $2,937.38 a year and raise power rates by 90 percent. Rural Democrats led by House Agriculture Committee chairman Collin Peterson (D-MN) had also raised concerns that the Environmental Protection Agency might be tasked to implement provisions on an offset program providing credits to farmers who use environmentally sound practices.

However, the final version of the bill had the Agriculture Department as overseer of the offset program, and the National Farmers Union had commended House leaders for passing the measure by saying they took "a step in the right direction."

Farmers were not alone in supporting the House bill, as BP America, Caterpillar, Conoco, Dow Chemical GE, Johnson & Johnson, Shell and Siemens had all backed the measure.

Among community and environmental groups, the Natural Resources Defense Council, Nature Conservancy, Sierra Club, World Wildlife Fund, American Lung Association and Center for American Progress expressed their support.

On Wednesday, the NFU repeated its support for the House bill but made clear it was less sanguine about the climate proposal from the Senate.

"NFU has been clear in expressing our support for a national, mandatory carbon emission cap and trade system if a number of core principles are met: the U.S. Department of Agriculture is granted control and administration of the agriculture offset program; early actors are recognized; no artificial cap is placed on domestic offsets; carbon sequestration rates are based upon science; and producers are permitted to stack environmental benefit credits," the group said. "The draft Boxer-Kerry language fails to address these provisions."

Republicans were equally critical.

"The national energy tax was a terrible idea when it passed the House, and it is an even worse idea now," said House Minority Leader John Boehner (R-OH). "Middle-class families and small businesses struggling to make ends meet shouldn't be punished with costly legislation." Sen. Lamar Alexander (R-TN), chairman of the GOP Conference and a member of Boxer's committee, said in a statement, "These are fancy, complicated words for high-cost energy that sends jobs overseas looking for cheap energy. Instead, we should take practical steps to produce low-cost, clean, carbon-free energy and create jobs. Specifically, we should build 100 new nuclear plants, electrify half our cars and trucks."

The Boxer-Kerry bill promotes nuclear energy by providing funding for research and development of advanced nuclear technology and nuclear waste management, and for programs to train workers on  construction, operation and maintenance of nuclear facilities.

The measure also encourages investment in natural gas, and rewards companies for reducing leaks from natural gas pipelines.

It creates a market stability fund to protect consumers from energy price hikes from inadvertent or abusive practices as companies start to reduce emissions. The bill also has "targeted protection" for the nation's manufacturing sector to ensure that jobs remain in the United States.

"Every dollar spent on clean energy creates nearly four times as many jobs as an equal investment in oil and gas," the summary of the draft legislation says. "By investing in the solar, wind and other renewable energy sources that will help save the planet, we will also save the economy by developing a workforce trained for the future."

President Barack Obama, who last week made his debut before the United Nations during a climate change summit, issued a statement praising Boxer and Kerry for their work on the bill. "We are one step closer to putting America in control of our energy future and making America more energy independent," said the President. "My Administration is deeply committed to passing a bill that creates new American jobs and the clean energy incentives that foster innovation."