Brad Johnson at Think Progress, The�Wonk Room has broken down the key provisions of the American Power Act and compared them with the Waxman-Markey bill that passed congress last summer and President Obama’s promises from his 2007-08 presidential campaign. Below is a repost of Johnson’s work (thanks, Brad!), but .
Last night, the Wonk Room published a summary of the , the comprehensive climate and clean energy legislation being introduced today by Sen. John Kerry (D-MA) and Sen. Joe Lieberman (I-CT). This post delves deeper into the legislation�s specific provisions. The following table compares key elements of Obama�s campaign promises from and , the Waxman-Markey American Clean Energy and Security Act as , and the elements of the , as based on leaked summaries.
The Kerry-Lieberman legislation has a 15-year transition period that supports state-level renewable and energy efficiency initiatives (which will ), invests in smart transportation, and , much like Waxman-Markey, but with new support for nuclear energy and natural gas that reflects the interests of large blocs of senators.
Important scientific elements in Kerry-Lieberman are the rapid mitigation of super-greenhouse gases and black carbon, as well as natural resource adaptation programs. By the end of 2025 the legislation has shifted to resemble the refund-based auctioned-allowance system promoted by President Obama and advocates of cap-and-dividend.
The primary missing information from the summaries is the disposition of the allowances � how they will be distributed to polluters and how rapidly the auctioned pool grows. Details of the scientific review provisions were also not included.
|Overall Structure||Economy-wide cap and trade, plus renewable electricity and energy efficiency standards and clean energy investment||Utility, industry, and petroleum sector cap and trade starting in 2012, plus renewable electricity and energy efficiency standards and clean energy investment||Utility (2012) and industry (2016) cap and trade with linked refinery cap, plus consumer rebates, support for state-level renewable electricity and energy efficiency standards, and energy investment|
|Emissions Targets||15% below 2005 (at 1990 levels) by 2020, 80% below 2005 (77% below 1990) by 2050||Capped Sectors: 17% below 2005 (3% below 1990) by 2020, 80% below 2005 by 2050
Overall economy goal: 20% below 2005 (7% below 1990) by 2020, 80% below 2005 by 2050
|Capped Sectors: 17% below 2005 by 2020, 80% below 2005 by 2050, plus accelerated mitigation of super-GHGs, black carbon|
|Scientific Review||Not discussed||Presidential plan in 2015 and every four years thereafter||TBA|
|Traditional Coal Plants||�Standards that ban new traditional coal facilities� if necessary, and �cap on carbon will make it uneconomic to site traditional coal facilities and discourage the use of existing inefficient coal facilities�||Price on carbon mitigated by free allocations based 50% on historical emissions; Clean Air Act performance standards in 2016 determined by EPA||Price on carbon mitigated by free allocations TBA; Clean Air Act performance standards in 2016 determined by statute|
|Green Economy Investment||$150 billion over ten years, including workforce training, plug-in hybrids, renewable electricity, advanced biofuels, advanced coal technology, nuclear power, and smart grid||Approximately $100 billion over ten years, including workforce training, plug-in hybrids, renewable electricity, advanced biofuels, advanced coal technology, nuclear power, and smart grid||$70 billion for clean/natural gas transportation over ten years, extensive support for nuclear, same support for advanced coal as W-M, and support for renewables|
|Permit Allocation||Full auction||Allocations based on historical emissions and energy production with 20% auction at start, phasing to 70% auction by 2030||Allocations TBA phasing to TBA auction by 2030|
|Renewable & Efficiency Standards||25% renewable electricity by 2025, 100% new building efficiency by 2030, phase out traditional incandescents by 2014||15% renewable electricity + 5% efficiency by 2020, 75% new building efficiency by 2030, appliance and lighting efficiency standards||Support for state-level standards; if national standard based on Bingaman energy bill, weaker than projected business-as-usual|
|Consumer Protection||LIHEAP, low-income weatherization grants, a �dedicated fund to assist low-income Americans,� plus Making Work Pay tax cut||Over first ten years, 45% (approx. $30 billion) of allocated permits and auction revenues dedicated to consumer protection through rebates and efficiency measures, emphasizing low-income consumers||Working families rebate checks from start; Allocated permits dedicated to consumer protection through rebates and efficiency measures; Universal rebate checks from 75% of auction revenues starting in 2026|
|Market Regulation||Increased regulation of energy markets||FERC and CFTC regulation, no over-the-counter derivatives trading, increased regulation of energy markets||Cantwell-Collins language prohibits derivatives, limits permit auction to covered emitters|
|Agriculture and Deforestation||Domestic and international incentives to sequester carbon and reduce deforestation, support for biofuels||Pool of offsets plus supplemental fund of 5% of permits for domestic and international incentives to sequester carbon and reduce deforestation, support for biofuels||Pool of offsets plus supplemental fund for domestic and international incentives to sequester carbon and reduce deforestation, support for rural energy program|
|Deficit Reduction||Not discussed||10% of permits auctioned (approx. $8 billion) over first ten years for deficit reduction||Obeys PAYGO; Starting in 2026, 25% of auction revenues for deficit reduction|
|Fuels and Transportation||Increase biofuels to 60 million gallons by 2030, low-carbon fuel standard of 10% by 2010, 1 million plug?in hybrid cars by 2025, raise fuel economy standards, smart growth funding, end oil subsidies, promote natural gas drilling, enhanced oil recovery||Smart growth funding, plug-in hybrids, raise fuel economy standards||$7 billion a year for smart growth funding, plug-in hybrids, natural gas vehicles, raise fuel economy standards; offshore drilling with revenue sharing and oil spill veto, natural gas fracking disclosure|
|Cost Containment||International offsets||Offset pool, banking and borrowing flexibility, soft price collar using permit reserve auction at $28 per ton going to 60% above three-year-average market price||�Hard� price collar between $12 and $25 per ton, floor increases at 3%+CPI, ceiling at 5%+CPI, plus permit reserve auction, offsets like W-M|
|Clean Air Act And States||Not discussed||Only polluters above 25,000 tons of carbon dioxide equivalent a year, regional cap and trade suspended until 2017, EPA to set stationary source performance standards in 2016, some Clean Air Act provisions excluded||Only polluters above 25,000 tons of carbon dioxide equivalent a year, regional cap and trade pre-empted, establishes coal-fired plant performance standards, some Clean Air Act provisions excluded|
|International Competitiveness||Tax incentives for domestic auto industry||Free allowances for trade-exposed industries, 2020 carbon tariff on imports||Carbon tariff on imports|
|References: Barack Obama, ; Barack Obama, ; Pew Center, ; leaked drafts of American Power Act, 5/11/10.|