October 9, 2009
What’s at Issue
On September 30, 2009, U.S. Senators John Kerry (D-MA) and Barbara Boxer (D-CA) introduced S. 1733, the Clean Energy Jobs and American Power Act that seeks to curb the effects of climate change by capping greenhouse gas (GHG) emissions nationwide.
Why It’s Important
The bill requires the U.S. Environmental Protection Agency (EPA) to regulate GHG emissions from aircraft and aircraft engines by 2012.
Major Provisions
S. 1733 is the Senate’s version of “climate change” legislation. The U.S. House of Representatives passed H.R. 2454, the American Clean Energy Security Act of 2009 in June.
The following are various provisions of S. 1733 that are either significant policy issues or that have a major impact on NATA members:
Title I – Greenhouse Gas Reduction Programs
- Clean Transportation:
- Emission Standards: Amends Title VIII of the Clean Air Act to require the EPA to establish GHG emission standards.
- Establishes provisions for averaging, banking, and trading of GHG emissions credits for motor vehicles and motor vehicle engines, non-road vehicles and engines (including marine vessels), and aircraft and aircraft engines determined by the EPA regarding the generation, banking, trading, duration, and use of credits.
- Carbon Capture and Sequestration:
- National Strategy: Requires the EPA, in consultation with other relevant federal agencies, to submit to Congress a report setting a unified and comprehensive strategy to address the legal and regulatory barriers to commercial-scale deployment of carbon capture and storage.
Title II – Research:
- Advanced Energy Research: Authorizes the EPA to carry out a program to provide grants to support research and development of innovative energy technologies that reduce U.S. dependence on foreign energy sources and reduce GHG emissions.
Title III – Transition and Adaptation:
- International Climate Change Programs: Requires that the President establish the Strategic Interagency Board on International Climate Investment, composed of the secretary of state, the administrator of the EPA, and other federal officials, to assess, monitor, and evaluate the progress and contributions of U.S. government entities in supporting financing for international climate change activities.
- National Climate Change Adaptation Program: Requires the President to establish a National Climate Change Adaptation Program to increase the overall effectiveness of federal climate change efforts, and to establish and disseminate information on climate information, data, forecasts, and warnings.
- Establishes a national “Cap and Trade” program for large scale GHG emissions
- Establishes targets for reducing global warming pollution: Reduces U.S. GHG emissions 20 percent below 2005 levels by 2020 (the House-passed bill included a 17 percent reduction target) and 42 percent by 2030.
- Periodic Review of GHG: The EPA must submit a report every four years to provide recommendations to avoid dangerous climate change, including the review of current and future projected deployment of technology to reduce or limit GHG emissions including low or zero GHG-emitting fuels.
- Designation and Registration of GHG: Directs the EPA to list carbon dioxide equivalents for each GHG and establish a federal GHG registry and comprehensive reporting system for GHG emissions.
- Emission Allowances: Establishes an annual tonnage limit on GHG emissions and directs the EPA to establish allowances equal to the tonnage limit for each year. One allowance represents the permission to emit one ton of GHG.
- Banking and Borrowing Emission Allowances: Permits unlimited banking of allowances for use during future compliance years.
- Market Stability Reserve: Directs the EPA to create a “market stability reserve” of emission allowances that will be auctioned at a set price of $28 per ton in 2012.
- The auction of additional allowances will help contain the costs of meeting the annual GHG limits and minimize price fluctuations.
- Offsets: Authorizes the President to establish an offsets program and requires that regulations ensure that offsets are verifiable and permanent.
Title VIII – Additional GHG Standards:
- State Programs: Bars states from implementing or enforcing a comprehensive GHG emissions limitation program.
- Investment in Clean Vehicle Technology: Distributes emission allowances for a national transportation low-emission energy plan and grants to reduce diesel engine emissions.
NATA Position
As with the American Clean Energy and Security Act, NATA is concerned that this bill attempts to create a “green” economy by artificially increasing energy costs and investing those funds in new unproven technologies. The complexity and possible impact of this bill demand careful and full evaluation by lawmakers before passage. NATA, however, is concerned that this climate change bill is being pushed through Congress in order to “get something passed now.” The future of the U.S. economy deserves full analysis of the bill and careful, deliberate action, not quickly enacted legislation.
Status
S. 1733 is currently undergoing economic analysis by the EPA, and the timeframe for completion is uncertain. Following the EPA analysis, the U.S. Senate Committee on Environment and Public Works will hold hearings on the legislation. Ultimate passage of the bill in the Senate is possible, but unlikely.
Staff Contact: Kristen Moore
Director, Legislative Affairs
Kmoore@nata.aero