|
Late last Friday evening, Senators Kerry and Boxer introduced S. 1733, the Senate Environment and Public Works Committee's (EPW) climate bill. The U.S. Environmental Protection Agency (EPA) concurrently released a study of the Committee's bill concluding that the costs of the Kerry-Boxer bill (also known as the Clean Energy Jobs for American Power Act, or CEJAP) are very close to the estimates prepared by EPA for the House-passed Waxman-Markey climate bill, the American Clean Energy and Security Act (ACES). The bill includes details about allocations and other issues that had not been addressed in the discussion draft released September 30.
Our preliminary review of the allocations for energy efficiency programs in CEJAP estimates a 16 percent drop relative to ACES. This is consistent with the EPA estimate that energy efficiency allocations will be reduced by 11 percent below ACES from 2012 to 2029, 22 percent from 2030 to 2039, and 25 percent thereafter. This reduction in energy efficiency allocations in CEJAP is due largely to the impact of allowances that are “taken off the top” for a strategic reserve, deficit neutrality, and other programs. Although the nominal allocations in the Senate bill appear similar to those in ACES, they are taken from a smaller pool. The recalculation of allowances affects allocations across the board, including those for utilities and renewable energy sources. A full summary of the energy efficiency provisions in the Senate bill is available on our CEJAP resource page.
This week the EPW Committee held three days of comprehensive hearings on CEJAP, beginning with Administration witnesses on October 27. The Committee intends to mark up the Kerry-Boxer bill next week, possibly on Tuesday. Five other committees have jurisdictional interest in climate legislation in the Senate, and Senator Kerry has urged these committees to complete their recommendations no later than Thanksgiving. This will enable the Senate Majority Leader to combine the various recommendations into a final bill that will be considered by the Senate, most likely sometime in the first quarter of next year.
Next week's Under the Capitol Dome will provide Associates with an overview of this week's EPW hearings and, if timing permits, the Committee mark-up.
|
