When Congress reconvenes after Labor Day, the U.S. Senate will resume its work on a comprehensive energy and climate bill. In part, those deliberations will focus on a companion bill, the America Clean Energy and Security Act, or H.R. 2454, which the U.S. House of Representatives passed on June 26, 2009, by a vote of 219 to 212. This article begins a series of articles that AGC will publish to keep members informed of the ongoing climate change debate in Congress. These articles will summarize H.R. 2454 in plain English and include AGC's preliminary reactions.
Majority leaders in the Senate are aiming to vote on their version of the climate change bill as early as October. After the differences between the two bills are reconciled, the resulting language will need to secure passing votes in both houses of Congress before a final bill can go to President Obama.
As Congress debates climate change, the U.S. Environmental Protection Agency (EPA) is also laying the foundation to regulate greenhouse gas emissions under the Clean Air Act though both industry groups and several government agencies (including EPA) have expressed concern that regulation under the existing statute is not the best course of action.
What's in the Bill?
Central to H.R. 2454 is a cap and trade program for reducing greenhouse gas emissions from electric utilities, oil companies and other sources. The bill also supports the development of clean energy technologies and infrastructure and promotes energy efficiency in buildings, transportation and appliances. Among many other things, the bill would trigger emissions standards for stationary sources that are not covered by the cap and trade program, emissions standards for a variety of vehicle types (including new heavy duty trucks and other types of non-road vehicles and engines) and requirements for state and local transportation planners to better link transportation and land-use decisions.
Title I: Clean Energy: Sets a combined efficiency and renewable electricity standard; creates a carbon capture and sequestration program; calls for clean transportation infrastructure and investment (electric vehicles, diesel emissions reduction, fleet vehicles, etc.), Smart Grid advancement, transmission planning, clean energy (e.g., nuclear) investment and support, etc.
Title II: Energy Efficiency: Establishes energy efficiency programs for buildings (codes, retrofit programs, energy performance labeling program, etc.) and for lighting and appliances; sets emissions standards to promote transportation efficiency, including greenhouse gas emission standards for mobile sources; energy efficiency programs for industry and clean energy in manufacturing and national energy efficiency goals, calls for programs and resources to build energy efficient neighborhoods and homes, etc.
Title III: Reducing Global Warming Pollution: Summarizes the information on greenhouse gases, including the potential effects of climate change, and identifies targets and goals for the reduction of those emissions; establishes an economy-wide cap and trade program to reduce greenhouse gas emissions, including information on allowances and trading; establishes programs to address offsets and deforestation; sets additional greenhouse gas standards from stationary sources; exempts greenhouse gases from several existing programs; charges EPA to develop a regulatory program to address black carbon, etc.
Title IV: Transitioning to a Clean Energy Economy: Addresses international negotiations and programs; increases and/or establishes funding and grants for green jobs training and worker transition; establishes assistance program for consumers; sets forth various plans for communities to adapt to climate change, etc.
Title V: Agricultural and Forestry Related Offsets: Establishes offset credit program from domestic agricultural and forestry sources, etc.
In the coming weeks, AGC will further explain the provisions in each of the titles in the House bill.
What Are AGC's Concerns, and What Can Members Do?
While elements of the legislation could create jobs by inducing demand for energy efficiency improvements to buildings and alternative energy generation, no one is certain of the magnitude of the impact that carbon regulation could have on the economy. AGC believes that the potential for the bill to further damage the economy is great enough to warrant extensive debate within Congress so that the resulting bill adequately addresses and mitigates the concerns of the business community and its effects on consumers.
Here's what you can do-
- Take action and write your Senator using the AGC Legislative Action Center. (AGC, its Chapters and members sent over 2,000 letters to Capitol Hill in response to H.R. 2454).
- Explore the potential threats-and-opportunities-in-hr-2454-v2 for the real estate and construction industries in climate legislation. This is an evolving discussion draft document resulting from AGC's meetings and discussions with representatives of the real estate and construction industries and other related groups.
- Go to www.congress.gov and search under "H.R. 2454" to read the bill.
- Read information about greenhouse gas emissions associated with the construction industry.
- Learn low-cost ways contractors can reduce greenhouse gas emissions from equipment.