On September 30th, U.S. Senators John Kerry (D-MA), Chairman of the Foreign Relations Committee, and Barbara Boxer (D-CA), Chairman of the Committee on Environment and Public Works, introduced the Clean Energy Jobs and American Power Act. The Bill is aimed at creating clean energy jobs, reducing pollution and protecting U.S. security by enhancing domestic energy production.

“This is a security bill that puts Americans back in charge of our energy future and makes it clear that we will combat global climate change with American ingenuity. It is our country’s defense against the harms of pollution and the security risks of global climate change,” Sen. Kerry said. “Our health, our security, our economy, our environment, all demand we reinvent the way America uses energy. Our addiction to foreign oil hurts our economy, helps our enemies and risks our security. By taking decisive action, we can and will stop climate change from becoming a ‘threat multiplier’ that makes an already dangerous world staggeringly more so.”

Coal
The bill calls for $10 billion over 10 years to support carbon capture and sequestration technology research. It also calls for additional funding to reward early adopters of the technology.

Natural gas
The bill promotes a new federal program that encourages investment in low-carbon power generation, especially natural gas. Additional incentives are being proposed for rewarding companies that reduce gas leaks from pipelines.

Nuclear energy
The bill suggests that nuclear power capabilities should be further developed, including investments in R&D for advanced nuclear technology and nuclear waste management. It also stipulates the further development of training programs for the highly-skilled workforce necessary to manage nuclear facilities.

Renewables and energy efficiency
The bill encourages pushing energy efficiency as much as it does the adoption of renewable power sources. It suggests that grants will be awarded to cities that embrace clean energy. Investments will also be in place to reward cities and states for investing in renewable energy, energy efficiency, retrofits and building upgrades.

Carbon management
The bill also sets a greenhouse gas reduction plan of 20 per cent by 2020 and 80 per cent by 2050 based no 2005 levels. The House of Representatives bill, championed by Representatives Waxman and Markey, only aimed for a 17 per cent cut by 2020, so that is a small step forward. The Senate bill aims to accomplish this through a Pollution Reduction and Investment system which, according to the summary of the bill, will cover less than two per cent of U.S. businesses. It does not cover any agricultural enterprises or small businesses that pollute less than 25,000 tons of carbon-based pollutants.

Adaptation
The bill recognizes the need to combat climate change on a couple of levels – an energy use shift and adaptation. With respect to the latter, the bill recommends funding for states to respond to the impacts of global warming, including help in fighting wildfires, droughts, protecting water supplies, preventing floods, and addressing sea level rise. There is a particular focus on coastal adaptation.

Transportation
There is an abundance of references to energy security in the bill, and obviously changing the nature of the transportation infrastructure in the country will be an important aspect of making that happen. There are provisions in the bill that support green transportation – transit, bike paths and other green modes of transport.

Carbon markets
The bill is thus far silent on the exact mechanisms for carbon markets, but there have been suggestions that there will be more detail regarding provisions for that in coming weeks.

There are some concerns regarding the protection of U.S. jobs that have yet to be addressed by the Boxer-Kerry bill. For instance, United Steelworkers’ international President, Leo W. Gerard, is concerned about the issue of “carbon leakage” — the effect of other countries who don’t have environmental standards in line with those of the U.S. using the economic advantage as a subsidy to “steal” U.S. jobs. This was addressed in the Waxman-Markey bill in the House of Representatives.

The Waxman-Markey bill attempted to mitigate against the trade impacts of the introduction of a carbon trading system. For instance, U.S. industries with a certain level of GHG intensity and exposure internationally would receive "rebates" financed by appropriations. If this system does not protect these industries, importers to the U.S. may be required to submit "international reserve allowances" for the emissions attributable to the goods.

It will be interesting to see if the bill in the U.S. Senate will be strengthened to take this into account.

The other big question is whether the bill can be passed before climate talks begin in Copenhagen in December. Some Democrats are talking up the idea that this is possible. Were it to happen it might be a boon to making headway at the meeting. However, considering the opposition that exists, it’s unlikely.

Watch for more updates on the Green Business website as they are announced.

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