June 29, 2009
What’s At Issue
The U.S. House of Representatives has passed H.R 2454, the American Clean Energy and Security Act of 2009 (ACES), setting a record pace in moving the comprehensive and controversial legislation through the legislative process. H.R. 2454 mandates an economy-wide carbon dioxide emissions cap 17% below 2005 levels by 2020, 42% below by 2030, and 82% lower by 2050. In addition, the bill includes a renewable electricity standard, calls for expanded production of electric vehicles, and mandates significant increases in energy efficiency in buildings, home appliances, and electricity generation.
Why It’s Important
ACES was introduced in the U.S. House of Representatives by Committee on Energy and Commerce Chairman Henry A. Waxman (D-CA) and Subcommittee Chairman Edward J. Markey (D-MA) on May 15, 2009, and was quickly reported out of committee. The bill moved through other committees of jurisdiction, such as the Committee on Agriculture where an agreement was made (1) to allow the U.S. Department of Agriculture to run the program overseeing agricultural activities that can be used to meet the bill’s cap-and-trade program and (2) that lawmakers would seek White House guidance on the appropriate role for the U.S. Environmental Protection Agency (EPA). Waxman initially provided for the EPA to be in charge of the program.
The original draft of the legislation included a provision for the EPA to set carbon emissions standards for new aircraft and new aircraft engines by 2012. However, the final version of the bill did not include this language.
Major Provisions
The draft bill includes six titles, and a few of its provisions concerning aviation are highlighted below:
- Title 1: Clean Energy
Subtitle B—Carbon Capture and Sequestration
- Within a year after the date of enactment of this Act, the administrator, in consultation with the secretary of the U.S. Department of Energy and the heads of such other relevant federal agencies as the President may designate, shall submit to Congress a report setting forth a unified and comprehensive strategy to address key legal, regulatory and other barriers to the commercial-scale deployment of carbon capture and sequestration.
- Title 2: Energy Efficiency
Subtitle C—Transportation Efficiency
- Averaging, Banking and Trading of Emission Credits – Establishes standards applicable to emissions of greenhouse gases or greenhouse gas emissions credits within or across classes or categories of motor vehicles and motor vehicle engines, non-road vehicles, and engines including marine vessels and aircraft and aircraft engines.
- Title 3: Global Warming Regulation – Places limits on emissions of heat-trapping pollutants.
- The federal government is attempting to regulate carbon dioxide by introducing a “market-oriented” cap-and-trade program that would reduce carbon dioxide by 17 percent below 2005 levels in 2020, and by 83 percent below 2005 levels in 2050.
- Title 5: Additional Greenhouse Gas Standards
- Aviation and Space Vehicle Safety – The administrator, after notice and opportunity for public comment, may authorize the production and consumption of limited quantities of class II group substances solely for the purposes of aviation or space vehicle safety if either the administrator of the Federal Aviation Administration or the administrator of the National Aeronautics and Space Administration determines that no safe and effective substitute has been developed and that such authorization is necessary for aviation or space flight safety purposes.
NATA Position
NATA is concerned that climate change legislation has not had enough time to be vetted to ensure that certain provisions won’t negatively affect our fragile economy. The architects of the bill argue that it will create millions of clean energy jobs and help Americans save on energy costs, but in reality it will do just the opposite. Using taxpayer dollars to invest in unproven energy sources while artificially driving up the costs of reliable energy, by means of a cap-and-trade program, will only cause additional economic hardships for consumers and small businesses, without any guarantee of environmental improvement.
The cost of a cap-and-trade program breaks down to roughly $175 per household annually, although the poorest consumers would see a net gain, according to a study released by the Congressional Budget Office last week.
NATA is pleased that the language mandating new emission standards for aircraft was removed, and the association will work with the U.S. Senate as it moves forward to monitor similar provisions.
Status
The schedule in the U.S. Senate is unclear on the priority of the companion bill to H.R. 2454. While the Senate claims climate change legislation is a priority, it is not certain how quickly any action on such legislation would take place. NATA will inform members of any changes to the Senate schedule.
Staff Contact: Kristen Moore
Director, Legislative Affairs
kmoore@nata.aero