Critics of the bill claim the costs of greenhouse gas reduction will be passed onto the consumer, thus creating a “hidden tax.” Energy Citizens is one such group opposed to the legislation. They write, “Unfortunately, the recently passed U.S. House of Representatives climate bill is a badly flawed 1,427-page piece of legislation that will drive up the price of energy, deter American job creation and send jobs overseas and bring greater stress to a still struggling economy.”
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The American Clean Energy and Security Act of 2009 cap and trade program will set an initial limit or cap on the amount of greenhouse gases permitted, then lower the cap over time. Credits will be distributed to the entities emitting these gases. Credits can be traded or sold, allowing industries that can implement reductions quickly or with less expense to do so and receive payment for their efforts.
Cap and trade is not a new concept. The 1990 Clean Air Act utilized a cap and trade model to address the issue of acid rain by reducing SO
2 and NO
x emissions. The EPA published the following results: “In 2002, SO
2 emissions from power plants were 9% lower than the year 2000 and 41% lower than 1980. NO
x emissions from power plants also continue a downward trend, posting a 13%
reduction in 2002 from 2000 levels and a 33% decline from 1990 levels.”3
Regardless of how industry chooses to trade credits, if an 80% reduction goal is met over the next 40 years, the program will be a huge success.
The ultimate goal of this bill speaks to more than global warming and clean energy, it is a call to arms to conserve energy, to reduce waste, to build and utilize alternative energy sources such as wind and solar, and to reduce our dependence on fossil fuels.
Electric suppliers will be required to invest in renewable energy, carbon capture and sequestration technologies, and develop plans for an electric vehicle infrastructure.
This bill supports the development of electric cars, alternative fuels, lighting and appliance energy efficiency, and increased conservation through building codes. Green jobs will be created. Green building will be encouraged through incentive programs. And more. 4
Will there be a cost? Of course, there will be a cost. And we, as consumers and as taxpayers, will shoulder some of that cost. But we will also reap the benefits. To continue on our current path of entitlement - using the majority of the world’s resources, polluting our air and water as well as adding to global pollution - is the greater cost.
On the
next page we have an alternative point of view that should certainly be considered.
Cap and Trade
Issue 1 | September 2009