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  4. Waxman Climate Bill Likely to be Marked Up by Other Committees

Waxman Climate Bill Likely to be Marked Up by Other Committees

Date: May 26, 2009

Source: News Room

The House Energy & Commerce Committee's approval of climate and energy legislation opens the door to a new round of negotiations as multiple committees wrestle over modifications to the measure, including mechanisms to shield consumers from increased energy costs and protect various industrial sectors and special interests in combating global warming. The 900-plus page bill, introduced by committee Chairman Henry Waxman (D-CA) and energy and environment subcommittee Chairman Edward Markey (D-MA), was approved late May 21 after four consecutive days of markup, and includes provisions to establish first-time carbon cap-and-trade requirements and a national renewable electricity standard. At the announcement, Waxman indicated a willingness to consider changes to the legislation in an effort broaden support for final House passage. Lawmakers on the committee passed more than two dozen amendments on a wide-range of subjects, key among them are provisions regarding nuclear energy, vehicle efficiency and the distribution of emission allowances.

Chief among the amendments approved by the committee was a provision offered by Rep. John Dingell (D-MI) that some proponents say would establish new federal incentives for nuclear power. The amendment, co-sponsored by Reps. Jay Inslee (D-WA) and Bart Gordon (D-TN), would revise the Department of Energy's loan guarantees program for low-carbon energy projects and establish a new clean-energy bank. The funds could be used for renewable energy projects as well as clean-coal and nuclear power and the amendment includes provisions to cap at 30 percent the share of clean energy loan guarantees that can be obtained by any one clean energy producer.

Overall, the bill sets a goal of reducing emissions 17 percent below 2005 levels by 2020. In addition, 35 percent of emissions allowances under the bill's proposed cap-and-trade system will go to the electricity sector -- largely to local distribution companies. The bill also includes a combined renewable and efficiency electricity standard that would require by 2020 that 15 percent of the nation's electricity come from renewable sources and 5 percent come from conservation measures.

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