Waxman-Markey Climate Bill Passes the House
By a slim 219-212 margin, the U.S. House passed the American Clean Energy and Security Act, known more commonly by the names of its authors, Representatives Henry Waxman and Edward Markey. The bill will cut U.S. carbon emissions by 17% by 2020, by 42% by 2030, and 83% by 2050, as compared to 2005 levels. The bill also establishes a cap-and-trade system for greenhouse gas emissions credits that applies to all electricity generation sources, and to other industrial sources that emit more than 25,000 tons of carbon dioxide per year. The bill also empowers the Environmental Protection Agency to regulate greenhouse gas sources emitting more than 10,000 tons per year. The bill establishes a sliding scale as to how emissions credits are distributed – at first, most credits will be distributed at no cost, but over time a greater percentage of credits will be auctioned, with proceeds used for low-income energy assistance programs.
Additionally, the bill establishes a federal renewable portfolio standard requiring 6% of energy to be generated from renewable sources nationwide by 2012, increasing to 9.5% in 2014, 13% in 2016, 16.5% in 2018 and 20% in 2021. The bill also strengthens numerous energy efficiency standards, and of particular importance to western states, the bill gives the Federal Energy Regulatory Commission authority over siting high-priority transmission lines in the Western U.S.
The bill's prospects in the Senate are uncertain.
Post authored by David Petersen, partner practicing in the Sustainability and Real Estate and Land Use Groups.
