Jessica Reiss

October 9, 2009

On September 30, 2009, the Senate introduced S. 1733: Clean Energy Jobs and American Power Act of 2009 in response to the Climate Bill passed by the House of Representatives last June (H.R. 2454: American Clean Energy and Security Act of 2009). If the Senate passes the Bill, it will be submitted to a committee for reconciliation with the House Bill. Neither will become law until both houses approve identical Bills.

If the Senate Bill's progress echoes the House Bill, which took 42 days from introduction to passage, a long road of committee considerations lies ahead. The Senate Bill is currently under consideration by the Committee on Environment and Public Works.

Delay only increases uncertainty. Both Bills require the Environmental Protection Agency (EPA) to promulgate a significant quantity of regulations. Both Bills require regulated entities to reduce emissions by 2012. Neither bill pushes back any of the deadlines for the EPA or the regulated entities.

The Senate Bill's cap and trade framework is similar to the framework proposed in the House Bill. Both Bills establish reduction goals and caps for greenhouse gas (GHG) emissions. The goals in both Bills match exactly:

- No more than 97% of 2005 GHG emissions levels by 2012

- No more than 80% of 2005 GHG emissions levels by 2020

- No more than 58% of 2005 GHG emissions levels by 2030

- No more than 17% of 2005 GHG emissions levels by 2050

The caps in the House Bill mirror its goals. Oddly however, the Senate Bill establishes the cap for 2020 as 83%, instead of 80%. As a result, the charts in each Bill showing the number of allowances distributed each year vary slightly from 2017 until 2029. The Senate Bill requires an average of 2.35% fewer emissions than the House Bill during those years. Though this may seem insignificant, the difference is over 1.4 Billion fewer emissions released during those years.

Of greater importance to New England, the Senate Bill does not clarify the provisions of the House Bill relating to the Regional Greenhouse Gas Initiative. Both Bills allow entities to exchange allowances from state cap and trade programs, but disallow such programs from 2012 to 2017.

Sources:

American Clean Energy and Security Act of 2009, H.R. 2454, 111th Cong. (2009).

Clean Energy Jobs and American Power Act of 2009, S. 1733, 111th Cong. (2009).

Charles W. Johnson, How Our Laws Are Made (2003).

John M. Broder, Curtain Rises on Senate Struggle Over Climate Legislation, N.Y. Times, Sept. 30, 2009 at A19.

Thomas, Library of Cong., http://www.thomas.gov/cgi-bin/bdquery/z?d111:h.r.02454:.