Outlining a Progressive Future

Progress on US Climate Bill

There has been further progress on the US Climate Bill in the past week with the US House of Representatives passing the cap and trade bill with a vote of 219 – 212. The vote, providing a major victory for Democratic leader Nancy Pelosi will now see the bill, which mandates for 17% cuts in greenhouse gas emissions by 2020 and 80% cuts by 2050 (based on 2005 levels), sent to the US Senate ready for debate after the July recess. Here is faces an uncertain future, with doubts over a number of controversial issues within the text of the bill.

There is no doubt that the bill will be substantially changed in the Senate. The question remains however as to how much this will occur and what effect this will have on any future passage of the legislation. Overall there are a few sticking points that continue to provide problems for legislators in both the Senate and the House of Representatives.


The continued argument being pushed by opponents to the climate bill is that it will substantially increase costs of energy to consumers in a difficult economic time (ignoring that the bill will not come into effect until 2012). The problem here is not the large number of Republicans who are arguing this (as they are largely outnumbered in both houses of Congress), but rather the few more conservative Democrats who are concerned over this issue. A number of these Democrats voted against the bill in the House; the question is whether the Senate leadership will be able to provide enough incentives to win these Democrats over in the Senate, where their support is much more needed.

Free Permits:

The second big sticking point continues to be the handing out of permits for free. The bill mandates that 85% of the permits under the cap and trade system will be given out for free, with the funds raised by the auction of the 15% to be distributed to lower income earners to offset increase costs created by the bill (this is up from the 53% of permits that were going to be given out when I last posted on this bill). This large number of free permits was largely put in place to please the interests of Democratic members of Congress based in energy intensive states (i.e. the ‘rustbelt’ of the US). However, this is causing problems within the Democratic caucus, with many (including many conservative pundits) arguing that this not only doesn’t make economic sense, but also takes away a large amount of money that can be used to offset costs for consumers and/or to be placed into investment in renewable energy. It is almost certain that this clause in the bill will be changed in the Senate, with the big question being how much and whether this will cause serious problems for further passage in the House.

Use of Offsets and Nuclear Power: Other problems related to the bill include the use of offsets and nuclear power as a means for the reduction of emissions. It is now clear that if the Democrats want to see this bill passed they will to some level be forced to embrace nuclear power as a greenhouse free option. This of course is causing major problems within the Democratic caucus, with many opposing any nuclear option within the climate bill. Second, there is a large amount of criticism over the use of offsets within the climate bill as a means to reduce greenhouse emissions, with critics arguing that offsets do not equate genuine reductions.

Where to From Here

The future of the climate bill is very much unknown. It is certain that the bill will be changed in the Senate, with it possibly being strengthened in some ways (through an increase in the percentage of permits being sold) and weakened in others (with possibly more concessions to specific interest groups). However, it is unknown as to whether these changes will gather the support required to pass the Senate and block any attempt at a filibuster. Second to this, it is unknown as to whether the bill will then be able to re-pass the House if changes made in the Senate put off House members.

What I am certain of however is that there will be a bill eventually. With the Environmental Protection Agency recently winning a battle that allows them to determine Greenhouse gasses as ‘dangerous emissions’ and therefore being given the right to regulate these emissions, legislators will soon realise that emissions are going to be regulated whether they like it or not. It is therefore certain that pushes to have legislation on the issue will increase as legislators decide that they would prefer to regulate emissions on their own terms rather than letting the EPA do it for them. The question is therefore, how good can this legislation be and when will it be passed. Most indicators show that it probably will occur this year (with Democratic members of Congress not wanting to embarrass Obama in his first year), but whether this will be a good bill this time is not certain. Only time can really tell as to whether this will be the case, leaving this as an issue both to continue campaigning around and to continue watching.

July 3, 2009 Posted by | Climate Change and the Environment, Monitering the Left, Options for a Progressive Future | , , , , , , | Leave a comment