The Minnesota Budget Project has been following the climate change debate for some time. Low-income populations will be disproportionately impacted if nothing is done about climate change, but these same households will also be impacted harder by price increases resulting from efforts to stop climate change. It is important, therefore, that any climate change legislation protect low-income households from price increases and make sure that they have access to green jobs, home weatherization and other opportunities.
We thought it was time for a little update on what is happening with climate change legislation.
In the U.S. Congress:
- The U.S. House passed a cap-and-trade bill last June called The American Clean Energy and Security Act. The bill set aside the revenues necessary to target consumer relief to the lowest-income 20 percent of the population. Our main recommendation for improving the bill was to extend relief to moderate-income households.
- Last October, the U.S. Senate proposed a similar cap-and-trade bill called the Clean Energy Jobs and American Power Act which has passed through the Environment and Public Works Committee. In its present form, the bill falls short of fully funding low-income consumer relief. As the bill heads towards the Finance Committee, we will continue to ask for reallocation of revenues to fully fund relief for at least the lowest-income households.
- An alternative to cap-and-trade was introduced in the U.S. Senate in December by Senators Maria Cantwell (D-WA) and Susan Collins (R-ME). The Carbon Limits and Energy for American Renewal Act (CLEAR) Act proposes a cap-and-dividend approach to reducing carbon emissions. This bill would provide consumer relief on a per capita basis, using 75 percent of revenues to fund dividends. It appears that this level of resources would more than mitigate cost burdens for low-income households. Here is a two page summary and a link to the full text.
- In December Senators John Kerry (MA), Joseph Lieberman (CT) and Lindsey Graham (SC) presented a “Framework for Climate Action and Energy Independence” to inform the debate on cap-and-trade in the U.S. Senate and gain bi-partisan support. You can read their 5 page outline here. In the President’s State of the Union address in January, Obama seemed to open the door to many of their interests while pushing for a comprehensive climate bill.
On the international scene:
- The 15th Conference of the Parties (COP 15) brought world leaders together in Copenhagen last December to discuss international commitments to address climate change. Many anticipated this meeting would nudge the U.S. Congress toward passing legislation to address climate change. A short agreement called the Copenhagen Accord was created - its influence on U.S. policy remains to be seen.
Unfortunately, it is still unclear what will happen next on climate change or how soon Congress might act to pass legislation. We will keep you posted as we learn more.
We also have a new climate change resource page where you can find our written materials on the basics of cap-and-trade and the importance of low-income consumer relief, the latest policy updates on climate change legislation, and resources and program information regarding consumer relief, green jobs, energy efficiency and weatherization. You will also find more information about environmental justice concerns and local programs and partnerships working to address climate change.
-Leah Gardner and Julia Jackson
