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Cap & Trade

H.R. 2454 the American Clean Energy and Security Act HR2454.pdf H.R. 2454 was introduced by Congressman Markey and was referred to the Energy and Commerce Committee for debate. On 21 May the Energy and Commerce Committee approved the bill and it is being scheduled for debate and vote before the entire House of Representatives. One of the provisions of this bill would create a cap and trade system throughout the United States in an effort to reduce the production of global warming gases. This system would limit the amount global warming gases emitted through regulation of “allowances” to each company. If a company released more gases than their “allowances” permitted the company would be taxed by the federal government. The system also would establish an “allowance” market that would permit companies to buy and sell “allowances.” I do not believe a cap and trade system is the approach that is best to reduce global warming gases. As a matter of fact I think it is a simple “Ponzi Scheme” that will increase energy prices. According to the Congressional Budget Office it will create a complex financial system that allows risky investment in the energy market increasing cost of living per household by $1600 per year. I also don’t like the idea that a factory in one state is cleaner than it has to be so that another factory is dirtier than it should be. This could potentially leave Mississippi with the cancer causing agents and other states with the credit. The United States is the world’s largest producer of carbon dioxide, the gas that many scientists believe is increasing global warming.  Energy use and production are of vital interest to our national security, economy, and the health of our environment.  There is no simple solution to the problem but I believe our national energy policy must strike a better balance between increasing domestic production on one hand, and facilitating much more aggressive, proactive development of alternatives to restrain the growth of demand for fossil fuels on the other.  Simply seeking more fossil fuels and conventional energy sources as the top priority is a shortsighted flawed approach to a national energy policy.  Debate about how to increase production of traditional, nonrenewable energy sources is a smokescreen that masks the real problem of our disproportionate and unsustainable dependence on oil and gas.  Instead of solely focusing on oil production, we should be doing more to promote energy conservation, efficiency, and alternative fuels.  This approach will reduce the emission of gases that contribute to global warming.  On December 18, 2007, I joined a bipartisan 314-100 member majority in the House of Representatives that voted for passage of H.R. 6, the Energy Independence and Security Act of 2007.  The President signed that bill into law the next day.  This legislation incorporated a number of important provisions that will move us closer to energy independence and provide strong incentives to increase use of alternate energy resources.  This bill contained legislation already proposed by a number of other bills designed to reduce our reliance on fossil fuels and address the problem of global warming. Key provisions of this bill include: • More stringent corporate average fuel economy (CAFE) standards for cars, sport utility vehicles (SUVs), work trucks, and medium and heavy-duty trucks.  This is the first increase in the CAFE standard since 1975.  This will require new auto fleets to average 35 miles a gallon by 2020, a 40 percent increase from today's 25-mile average.  By 2020, the measure could reduce U.S. oil use by 1.1 million barrels a day, more than half the oil exported by Kuwait or Venezuela and equivalent of taking 28 million of today's vehicles off the road. • Requiring that 36 billion gallons of biofuels be blended with gasoline by 2022, with no more than 15 billion gallons derived from corn. • Creating a new program to promote research and development on the feasibility of increased production of biofuels. • Authorizing $2 billion in each of fiscal years 2008 through 2012 for a new Energy Efficiency Block Grant Program, in which the Energy Department would award grants to state and local governments for an array of activities to improve energy efficiency. • Establishing new energy efficiency standards for home appliances and all common household lighting to require that less energy is used. • Establishing new energy efficiency standards for residential buildings. • Requiring a gradual reduction in energy usage in federal buildings, culminating in a 30 percent reduction by 2015. • Establishing a Smart Grid program to modernize our electricity infrastructure to increase reliability and security, including the development of technology that can automatically respond to changing conditions in the electricity market and the inclusion of renewable energy in the electricity market. • Expanding the current carbon sequestration program to require large-volume tests of carbon storage to examine the costs and feasibility of geologic storage methods. • Authorizing $125 million in each fiscal year for a new grant program for training programs for workers in the renewable energy and energy-efficiency sectors - such as solar panel manufacturers and "green" building construction. • Establishing the International Clean Energy Foundation to pursue ways to reduce global emissions of greenhouse gases. • Providing small business loans and grants for investment in energy efficiency. The recently passed American Recovery and Reinvestment Act also included several provisions to promote energy conservation and increase renewable energy production. These provisions include funding to weatherize low-income housing, investments toward construction of a “smart grid,” and extension of the Production Tax Credits that were due to expire this year. In my capacity as Chairman of the Seapower and Expeditionary Forces Subcommittee of House Armed Services Committee, I am tasked with oversight of the U.S. Navy and Marine Corps.  In that role I have consistently demanded that the Department of Defense do more to address our military’s dependence on foreign oil.  This dependence on fuel from unstable countries has the potential to cause severe national security problems in the future.  I sponsored a provision in the FY 2008 National Defense Authorization Act that requires the Secretary of the Navy to build the next major class of surface combatant ships with integrated nuclear propulsion technology.   In the FY 2009 National Defense Authorization Act, I’ve expanded that requirement to include large amphibious ships which will save 10 million gallons of fuel for each ship per year.  This addresses the problems of dependence on foreign oil and global warming while giving the Navy a number of key operational advantages. Federal, state, and local governments all have a responsibility to establish the laws and regulations that govern the production and distribution of electric power.  Government should also pass laws and offer incentives to facilitate the development of new, cleaner sources of electricity.  However, the utility companies also have responsibilities.  They must build the power generation plants and infrastructure that deliver affordable, reliable, and environmentally sound electricity to their consumers.  They cannot sit back and assume the government will provide all the resources and make all of the decisions.  Our country and economy work best when government lets American industry and ingenuity find ways to meet consumer needs.  There is more to be done to reduce our dependence on foreign oil, develop alternative sources of energy, and lessen the impact of energy use on the environment.  I am committed to supporting future efforts to address these shortfalls. I will continue to carefully monitor the findings of congressional hearings and any legislation seeking to address these issues in the 111th Congress.

 

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