Lieberman-Warner’s “America’s Climate Security Act” re-introduced in 2008
Eventually the U.S. will join the majority of industrialized nations in addressing climate change and pass some kind of legislation (probably by 2011 I would imagine with either McCain or Obama in the White House) to start regulating greenhouse gas (GHG) emissions in the U.S. I would prefer an adjustable fuel tax or pollutant-component tax on the front-end of supply (e.g. 2% or 3% tax in 2010) to simplify the regulation. But even with a complicated cap-and-trade system, we should begin to see some reflection of the true cost of fossil fuels (i.e. including the perceived environmental costs) in the prices we pay for petroleum fuels, electricity and natural gas.
Here is an NWF overview of the Lieberman-Warner bill.
Starting within five years, the bill would reduce global warming pollution from major emitters such as power plants and oil refineries by about two percent each year from current levels. Emissions from these sources will be reduced by 15% below current levels between 2012 and 2020. Over the longer term, the bill will reduce global warming pollution from major emitters by one-third (33%) below current levels between 2012 and 2030, and by 70% below current levels between 2012 and 2050. The bill regulates power plants, oil companies and big industrial emitters, accounting for about three-quarters of total U.S. greenhouse gas emissions. According to analysis by the Natural Resources Defense Council, due to additional measures in the legislation to strengthen building codes and appliance standards, the bill could reduce overall U.S. greenhouse gas emissions between 16-22% below current levels by the year 2020.
Prices that depend on energy will probably go up slightly as a consequence of any GHG regulation, but the Lieberman-Warner bill, also known as “America’s Climate Security Act”, would only require a gradual 1% to 2% annual reduction in GHG emissions. Plus the bill should accelerate demand for energy efficiency and stimulate other sectors of the economy, so who knows what the net effect will be on the overall economy.
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