House Passes Climate Change Bill

On Friday, June 26, 2009, the U.S. House of Representatives passed, by a vote of 219 to 212, The American Clean Energy and Security Act of 2009 (H.R. 2454), authored by Congressmen Henry Waxman (D- Calif.) and Edward Markey (D-Mass.). The bill was the product of months of negotiations with members in industrial and rural districts. In the end, 44 Democrats voted against the bill, and eight Republicans voted in favor of the bill.

Now that the House has passed this bill, it will be sent to the U.S. Senate for consideration. H.R. 2454 faces tough odds in the Senate, where similar disputes among moderate Democrats are expected and where some Republican support will likely be needed.

Dallas Regional Chamber President, James C. Oberwetter said, “The close vote in the House underscores the deep division in Congress over future energy policy and the way the U.S. should proceed to reduce carbon emissions. This is the time for businesses to be in contact with U.S. Senators across the nation to let them know the impact on their companies.”

Prior to the U.S. House vote the Dallas Regional Chamber held an Energy Forum featuring former U.S. Secretary of State James A. Baker, III and State Comptroller Susan Combs.

One reason often cited by opponents to the measure is that other countries have not agreed to reduce their carbon emissions. As an example, on July 19, India rejected a request by the West to submit to mandatory reductions.

Senate Environment and Public Works Chairwoman Barbara Boxer (D-Calif.), said she will postpone a committee markup of climate change legislation until September, citing the heavy Senate workload.

The 1,428-page Waxman-Markey bill would aim to reduce climate change, set goals for alternative energy requirements, better energy efficiency and create regular analyses from federal agencies. This comprehensive national climate and energy legislation would also establish a cap and trade program to regulate U.S. greenhouse gas emissions. The bill seeks to reduce greenhouse gas emissions through a cap and trade system for larger emitters (sources responsible for emissions of at least 25,000 tons per year) and authorizes the U.S. EPA to apply traditional Clean Air Act "new source performance standards" for smaller emitters (sources emitting between 10,000 and 25,000 tons per year).

The bill would limit emissions at 17 percent (below 2005 levels) in 2020, 42 percent in 2030 and 83 percent in 2050. Under the cap and trade system about 70 percent of available emission allowances will initially be allocated to emitters for free, leaving about 30 percent of the allowances to be auctioned. By 2031, the percentage of auctioned allowances increases to approximately 70 percent.

While Republicans and Democrats were sharply divided on the bill, they agreed on its significance. The vote marked the first time that either chamber has passed a bill to cap the emissions of greenhouse gases.

If the Senate passes the bill, differences between the Senate and House bills would have to be reconciled and then passed by both chambers, before the bill could be sent to President Obama and signed into law.

The Chamber would greatly appreciate any thoughts or feedback that you have regarding H.R. 2454. Please contact Meredith Armstrong at marmstrong@dallaschamber.org.

1. Davenport, C. & Palmer, A. (2009) A Landmark Climate Bill Passes. CQ Weekly – Weekly Report. 1516. Accessed June 29, 2009, from http://www.cq.com/display.do?dockey=/cqonline/prod/data/docs/html/weeklyreport/111/weeklyreport111-000003155539.html@allnews&metapub=CQ-WEEKLYREPORT&binderName=cqweekly-bysection-20090629&seqNum=12

2. Davenport, Coral and Palmer, Avery. (2009) Climate Change Bill Narrowly Passes in House. CQ Today Online News. Accessed June 26, 2009, from http://www.cq.com/document/display.do?dockey=/cqonline/prod/data/docs/html/news/111/news111-000003154783.html@allnews&metapub=CQ-NEWS&searchIndex=2&seqNum=7

3. Mosites, J. The Climate Report. Jones Day. Accessed July 8, 2009, from http://thewritestuff.jonesday.com/ve/ZZx30296729Vdlh785/VT=0/page=1.

4. Palmer, A. (2009) Climate Change Bill Will Not Get Senate Markup Until After August Recess. CQ Today Print Edition. Accessed July 9, 2009, from .