Energy Issue Alert from the NC Chamber
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Senate’s New Climate Change Bill Unveiled, What is Included? What do you Think?
The long-awaited new Senate proposal addressing “climate change” was officially unveiled on Wednesday, May 12th, by U.S. Senators John Kerry (D-MA) and Joe Lieberman (I-CT). The Senate’s new proposal follows months of negotiations between three key senators – Sens. Kerry, Lieberman and Lindsey Graham (R-SC) – with Sen. Graham withdrawing from the negotiations recently, leaving the Senate proposal without a Republican sponsor.
Senator Graham did release the following statement after the proposal was unveiled, however: “I look forward to working with my colleagues on both sides of the aisle to improve upon these concepts and find a pathway forward on energy independence, job creation, and a cleaner environment. We should move forward in a reasoned, thoughtful manner and in a political climate which gives us the best chance at success.”
The Senate’s proposal was designed to draw broad support from environmentalists as well as industries, purporting to curb carbon emissions, reduce U.S. oil imports by 40 percent by 2030, and create millions of new jobs. Unlike the House version passed earlier (more information on this bill below), which sets an industry-wide cap on emissions of gases contributing to global warming and establishes a market for buying and selling government-issued allowances, the Senate legislation would take a sector-by-sector approach to reducing emissions. The Senate proposal also would more tightly restrict trading of emissions allowances and would include incentives to expand offshore drilling, nuclear power and “clean” coal technology in a bid for support from Republicans and moderate Democrats. The measure also would include protections for energy-reliant U.S. manufacturing industries.
Some key provisions included in the Senate’s proposal are:
- Greenhouse gas emissions to be cut by 17 percent by 2020.
- Includes a “hard price collar” that will keep carbon prices between $12 and $25 in the trading market created by the legislation, protecting against the threat of increases in energy costs.
- New subsidies to support coal and nuclear power. Its nuclear provisions include approval of $54 billion in loan guarantee authority to help spur a “nuclear renaissance,” and would also streamline the process for permitting nuclear plants. The coal industry would get $2 billion a year to research and develop technologies to capture carbon before it reaches the atmosphere.
- Manufacturers get a reprieve from having to comply with the emissions reductions until 2016. That year, energy-intensive and trade-exposed industries receive allowances to offset both their direct and indirect compliance costs.
- Farmers would be exempt from having to comply with the carbon caps. Instead, they could see a benefit in the form of revenues through an offset program companies can use to meet their targets in addition to cutting emissions at the smokestack.
- Incentives for the commercial deployment of carbon capture and sequestration.
- A 37.5 percent state royalty share for states participating in offshore drilling.
- Compromise between opponents and supporters of offshore drilling providing for coastal states to opt out of drilling up to 75 miles from their shores. In addition, directly impacted states can veto drilling plans if they stand to suffer significant adverse impacts.
Click here to review the entire Senate climate change proposal.
Click here to review a summary of the Senate climate change proposal.
The Senate’s new proposal follows the U.S. House passing its complex version of climate change legislation last year – by only seven votes. The House bill, H.R. 2454 – the American Clean Energy and Security Act (also called the Waxman-Markey bill after its co-sponsors) – sets national limits on so-called “greenhouse gasses,” creates a “cap-and-trade” system for emissions permits for employers that release the gases, and attempts to change how individuals and employers use energy. The cap in the House bill would force a 17 percent decrease in emissions (below 2005 levels) by 2020 and an 83 percent decrease by 2050.
What Do You Think?
It is the North Carolina Chamber’s goal to make sure that if climate change legislation passes Congress it will not put North Carolina at a competitive disadvantage with other states, or the United States at a competitive disadvantage with other countries. We want to protect both our environment and our economy and don’t believe these goals are mutually exclusive.
As the debate continues in Congress, we want to know what concerns, issues and questions our members have related to climate change policy. Climate change proposals are so broad and would make such major changes in the way we make, distribute and use energy that they need and deserve intense examination and debate. As these proposals continue to work their way through Congress, your state Chamber looks forward to working with members and North Carolina’s elected representatives to make sure any climate change law that passes balances our environmental, energy and economic needs.
As always, the North Carolina Chamber will keep its members informed about this and other energy issues important to jobs and the economy, especially when there is an opportunity to weigh in and make a difference.
Thank you.
Kerri A. Burke
Director of Communications
North Carolina Chamber
-a force for business
919-836-1422/Phone
