Climate Capsule Week of May 25

Highlight of the Week
Climate Vote the Shot Heard Around the World

Taking the first step toward meeting President Obama's call for comprehensive energy and climate legislation this year, the House Energy and Commerce Committee last week approved the American Clean Energy and Security Act by a 33 to 25 bipartisan vote.

The legislation will establish a new energy policy in the U.S. that avoids continuing dependence on foreign oil and builds a new, domestic clean technology manufacturing base to supply the wind, solar, and other renewable energy.  The bill also takes significant steps toward solving the global warming crisis by limiting carbon pollution.

"Committee passage of comprehensive energy legislation is a vote heard around the world.  It marks a historic turning point in climate politics that secures America's role as a leader in the clean energy revolution," said Joseph Mendelson, director of global warming policy at National Wildlife Federation.

Chairmen Waxman and Markey have proven that what was impossible in years past has massive momentum today.  A stronger bill would create even more clean energy jobs for Americans faster and do more to address the impacts of global warming.

Diverse constituents from across this country's rom hunters and anglers to people of faith have called on Congress to tackle the climate crisis that threatens our natural resources and health.

Contact: Tony Iallonaro at 202-797-6612 or iallonardot@nwf.org.

White House Plans To Boost Car Fuel Efficiency Standards

President Obama was recently joined by Governors Arnold Schwarzenegger (R-CA) and Jennifer Granholm (D-MI) to announce plans to issue the most stringent fuel economy standards for automobiles ever enacted in the United States.

If approved, the new Corporate Average Fuel Economy (CAFE) standards would require all cars and light trucks in the model years 2012-2016, to meet average fuel economy standards of 35.5 miles per gallon by 2016.

Quote:

"We are now one step closer to delivering on the promise of a new clean energy economy that will make America less dependent on foreign oil, crack down on polluters, and create millions of new jobs all across America."

President Obama, in a statement applauding the House Energy And Commerce Committee's historic passage of the American Clean Energy and Security Act.

Economic Message of the Week

Study: Climate And Energy Legislation Could Generate $750 Billion for Consumers

A new analysis of the American Clean Energy and Security Act finds that consumers would receive around $750 billion in direct and indirect handouts and subsidies through 2030 to offset the higher energy costs.

The Waxman-Markey climagte bill, which passed last week in the Energy and Commerce Committee, creates pollution permits, or allowances, for carbon-intensive industries like power producers or oil refineries. The number of these permits gradually goes down each year, providing a cap on greenhouse gas emissions.

Since the permits can be traded, they also set a price on carbon-dioxide emissions and encourage polluters to switch to cleaner fuels. The bill directs that nearly half of these permits would be used to subsidize energy consumers, either directly or through payments to electrical utilities.

In addition, the bill provides $227 billion to low-income households, $90.6 billion to local gas companies, and nearly $20 billion to protect against increases in rising heating oil costs.

Point Carbon, a market analysis firm, has estimated that the total value of the allowances given out by the government would amount to $1.5 trillion between 2012 and 2030, assuming that carbon prices rise from $13 a ton in 2013 to $22 a ton.

Happening This Week

Wednesday, May 27:

EIA to Release International Energy Forecasts, 9:30 a.m., Center for Strategic and International Studies, B-1 Conference Center. EIA presents projections of world energy supply and demand through 2030 with the release of the reference case projections from "International Energy Outlook 2009". Contact CSIS:  Neil Urwitz: (202) 775-3167, nurwitz@csis.org

Thursday, May 28:

2-3:30 p.m. State Energy and Climate Actions' Lessons for Federal Policy, in 2168 Rayburn House Office Building. Environmental and Energy Study Institute and Center for Climate Strategies hold a briefing to learn about state actions on climate and energy, and will feature representatives from states in the Southeast, Mid-Atlantic and Midwest. Contact Amy Sauer at (202) 662-1892 or asauer@eesi.org.