April 22nd, 2009 · No Comments

By Barbara Kessler
Green Right Now

The first full day of hearings on that proposed law known as Waxman-Markey, which would promote clean energy, foster green jobs and set up a system to curb greenhouse gas emissions, began — fittingly — on Earth Day.

But how do we make sense of this sweeping piece of legislation that affects everything from the air you breathe to the refrigerator you use? You could watch the hearings on C-Span over the next few weeks. (If you are unemployed, have all day long to plop in front of the tube and can remain alert for extended periods while people discuss abstractions like “carbon allowances” and “international offsets” this might be for you!)

Or you could read the bill. It is 648 pages. But as we learned from the recent stimulus escapades, even people in Congress don’t read these things.

So let’s stick to the executive summary of the American Clean Energy and Security Act of 2009. It is five pages long. For serious climate watchers, politicos, green collar workers and would-be Earth advocates, scanning this document is not a bad idea.

Fortunately we’re not the only ones trying to find ways to make this incredibly complex matter digestible. The EPA is on the job. The agency that would regulate and guide many of the directives in Waxman-Markey, should it pass, has put out an analysis of how it would help grow the economy and boost personal income while transforming the U.S. energy landscape and curtailing carbon emissions. (Though we’re back up to nine pages on this one.)

The EPA review — done at the request of House Energy and Commerce Committee Chairman Henry Waxman (D-Calif.) and Energy and Environment Subcommittee Chairman Ed Markey (D-Mass.) — looked mainly at how emissions reductions and cap-and-trade guidelines would affect the economy (Title III in the Act.). It found that the W-M bill would:

• Make it more economical to invest in energy efficient manufacturing, housing and transportation, which would reduce energy consumption, delaying until mid-century the consumption levels we’d otherwise reach by 2015.

• Grow renewable energy; push forward new technology for coal production, bringing coal carbon capture and storage online in 2015.

• Its cap-and-trade provisions would result in carbon costs of about $13-$17 per metric ton in 2015, rising to $17-$22 by 2020 – propelling the development of cleaner alternatives.

• More clean energy would offset the need for increased petroleum use (a major security issue), keeping it nearly static through 2050. (Which tells you a bit about where the opposition to W-M will come from.)

The EPA report says a lot more. But it’s as thick as Ulysses. It needs deciphering. The Natural Resources Defense Council is trying, having asked its chief economist to analyze the EPA’s analysis (only in Washington).

Laurie Johnson, chief economist for the NRDC, looked at what the EPA was (trying) to say about household income under Waxman-Markey and found that:

• Households will become 18-19 percent richer between 2010 and 2020, and 36-40 percent by 2030. By contrast, the investment of the average household in the bill would only be $98 to $140 a year.

Takeaway: The Congressional prescription for global warming and our ailing economy won’t cost us too much net-net, and could even make us better off. If all goes well.

Take it with a grain of salt. And stay tuned.

(The NRDC has other decipherers. See David Doniger’s blog “First Read” of the Waxman-Markey Energy and Climate Discussion Draft. This excellent piece breaks the Act down into its significant parts.)

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