Climate bill debuts in Washington, D.C.

Enlarge Image

Ethanol is expected to be at or near the top of the list of targets for federal subsidy cuts.

The much-anticipated climate bill made its debut in Washington Wednesday, introduced by Sen. John Kerry, D-Mass., and Sen. Joseph Lieberman, I-Conn.

Dubbed the "American Power Act," (there are a variety of summaries available for download here) the bill aims to bring down emissions of carbon dioxide and other gases blamed for global warming, while expanding offshore oil drilling and nuclear-power production — concessions designed to appeal to a broader number of senators.

What the bill doesn’t do is establish any framework for a federal carbon cap-and-trade system or — according to many insiders — posses much of a chance of passing.

As Mike Nesteroff points out in a Lane Powell blog post, bill provisions barring states or regions from implementing or regulating cap-and-trade programs could encounter resistance from regions such as the Northeast and the West which have worked on their own regional schemes to put a price on carbon.

"Its too soon to say whether Kerry-Lieberman represents the beginning of the end for RGGI and WCI or if its simply another bump in the road," wrote Nesteroff. "As the fractious history of climate change legislation has demonstrated many times in recent years, proposing a bill is one thing, getting it passed is quite another."

The bill’s language includes a strong focus on protections for the consumer including ensuring price and policy predictability. Other provisions of the bill include:

• • $2 billion per year for researching and developing effective carbon capture and sequestration methods and devices.
• • $54 billion in loan guarantees and a manufacturing tax credit to spur the domestic production of nuclear parts.
• • Over $7 billion annually to improve our transportation infrastructure and efficiency, including our highways and mass transit systems.
• • Adding $5 billion to the clean energy manufacturing tax credit.
• • A “multi-billion dollar revenue stream” for the agricultural industry through an offset program, run by the U.S. Department of Agriculture, that would provide incentives for farmers to reduce emissions on their land.

Stephanie Page, renewable energy specialist with the Oregon Department of Agriculture said more research is needed about the feasibility of offset programs in Oregon, but she was pleased to see the focus on offsets in the bill.

In addition, the bill exempts most of the agriculture sector from the carbon pollution restrictions it proposes for other industries. "I'm glad to see that," said Page. "The agriculture sector will be economically impacted by because of its dependence on fossil fuels in transportation."

Most environmental organizations expressed support for the bill, despite its compromises.

Climate Solutions, a Washington-based policy-focused nonprofit with offices in Seattle, Olympia and Portland, released a statement urging action on the bill.

"After the Gulf oil disaster, there’s no place to hide, and there can be no further excuses for delay," said KC Golden, Climate Solutions' policy director in the statement. "And with comprehensive climate and clean energy legislation now before Congress, America finally has a serious chance to take control of our energy future. To get it done, the Senate will need to strengthen these proposals and resist the powerful interests favoring fossil-fuel-dependence-as usual."

Read more about the bill in Portfolio.com.