Report: Climate bill would deliver 440,000 jobs, consumer savings

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

A new analysis of the American Power Act of 2010, the climate bill introduced in mid-May, shows that the policy would created an estimated 440,000 additional jobs by 2020 and save consumers $35 annually on their energy bills.

The analysis, conducted by the San Francisco-based CliamteWorks Foundation using a tool created for the group by consulting firm McKinsey & Company, also found that the bill would maintain an annual growth rate of the U.S. gross domestic product of 2.3 percent through 2020 and reduce U.S. greenhouse gas emissions by 3.6 billion tons.

The report states: "The economic implications of this energy transition are complex, but the model points to investments in energy efficiency and new power sources as a primary stimulant of economic activity, particularly employment."

The tool used in the report, the McKinsey & Company's Low Carbon Economics Tool uses interlinked models to calculate the relative costs of different policy options.

The American Power Act, a long anticipated climate bill, was introduced by Senator John Kerry, D-Mass., and Senator Joe Lieberman, I-Conn.

Using the Gulf Spill as a back drop, President Barack Obama is expected to drum up support for climate legislation in his first Oval Office address Tuesday.

Earlier this month a group of Northwest businesses issued a call for legislative action on climate change.