March 3, 2010
The Minnesota Budget Project has been closely following legislation to address climate change. 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.
Since the U.S. House passed the American Clean Energy and Security Act in June of 2009, we have all been waiting to see what action the Senate would take. There have been a variety of proposals floated, including cap-and-trade, cap-and-dividend and other ideas somewhere in between. Our allies in Washington D.C. have indicated that the Senate is working to put a bi-partisan proposal in motion within the next few weeks, so the time to influence that bill is now.
Please join the Minnesota Budget Project – and other organizations from across the country – in letting the Senate know that there is broad nationwide support for strong and fair climate change legislation.
Call your Senators during the “72 Hours for Clean American Power” campaign running now through Thursday, March 4th. This is our opportunity to remind our Minnesota Senators that there is a diverse community supporting their efforts to pass comprehensive climate change. However, to make that legislation fair, the bill must provide low-income consumer relief and access to economic opportunities like energy efficiency improvements and green jobs.
Call Senator Klobuchar (202-224-3244) and Senator Franken (202-224-5641) on Wednesday or Thursday to be a part of the “72 Hours for Clean American Power.” If you miss that window, your call is still important. For more information, including phone numbers and sample call language, visit the Minnesota Budget Project climate change resource page.
-Leah Gardner
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Action Opportunity, cap and trade | Tagged: cap and trade, climate-change, Congress, federal, senate | 
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Posted by leahgardner
February 11, 2010
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
Leave a Comment » | Environment, Poverty, cap and trade | Tagged: cap and dividend, cap and trade, climate-change, Congress, copenhagen | Permalink
Posted by leahgardner
December 15, 2009
At the end of November, we blogged about how the Senate bill addressing climate change (the Clean Energy Jobs and American Power Act) fell short of delivering the funds needed for low-income consumer relief. Now we’re writing to Senators Klobuchar and Franken to share our concerns with them and we are asking your organization to add your voice.
Our new letter is an updated version of a previous sign-on letter delivered earlier this fall. Both letters reflect our ongoing commitment to:
- Hold low-income households harmless from increased prices of basic necessities as a result of cap-and-trade.
- Ensure equitable access to potential economic benefits, including green jobs.
If your organization was not able to sign on to the previous version, here’s your second chance! To add your organization to the list of signers, please send an email to leah@mncn.org by this Friday, December 18th.
As you may have noticed, the Clean Energy Jobs and American Power Act is only one of several efforts underway to address climate change. Here are some other updates:
- The United Nations Climate Change Conference, also called Cop15, is taking place in Copenhagen from December 7th through 18th. You can find detailed information at their Web site. If you’d like to follow a more Midwestern focus, a coalition called RE-AMP has compiled a list of blogs, twitter feeds, pictures and videos from Midwesterners in Copenhagen.
- Last week 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. For more information you can read their five-page outline.
- Last week Senator Maria Cantwell (WA) introduced a new climate change bill, the CLEAR Act. This bill proposes a “cap-and-rebate” or “cap-and-dividend” approach where 75 percent of the money raised from auctioning off carbon shares would be rebated directly to every American. The other 25 percent of revenue would be used for clean-energy research and development, energy efficiency, and green jobs assistance. For more information, a one-page summary is available.
We will continue to do our best to keep you informed as progress unfolds, but now is a great time to act by signing on to our letter or calling Minnesota’s senators with your own message. If you are interested in taking action now, please call or email us - we have templates and information you can use!
-Leah Gardner (651-757-3063) and Julia Jackson (651-757-3074)
Leave a Comment » | Action Opportunity, cap and trade | Tagged: cap and trade, climate-change, federal | Permalink
Posted by leahgardner
August 27, 2009
Last week, the Minnesota Council of Nonprofits hosted a Convening on Climate Change to bring together a diverse range of nonprofits and other advocacy groups to talk about the impacts of climate change on low-income communities and people of color. This is an urgent conversation since there is pending federal legislation that could have both positive and negative impacts on Minnesota’s low-income families.
Over 50 people attended the convening, representing environmental groups working to reduce global warming, faith groups speaking up about climate-related social justice issues, labor and equal rights groups working for adequate access to green jobs, community groups working to oversee proper implementation of local investments in home weatherization, and a variety of low-income service providers concerned about provisions for adequate consumer relief to counter rising energy prices. Attendees got a chance to learn from one another about how climate change itself impacts low-income people disproportionately and the many ways that legislation may provide both opportunities and concerns for disadvantaged populations.
The convening, however, wasn’t just about learning…it was also about action.
Organizations in attendance had the chance to discuss and commit to a variety of action items that will allow us to work on this issue in a more collaborative spirit.
One important action that many groups committed to that day was to sign-on to a letter to Senator Klobuchar asking her to take the lead in shaping strong and fair climate legislation with low-income Minnesotans in mind.
It is not too late to add your organization to the list of those supporting strong and fair solutions to climate change! E-mail me by Monday, August 31st at leah@mncn.org if your organization can sign-on and strengthen our joint work on behalf of disadvantaged populations.
I’d also encourage you to call me at 651-757-3063 soon if you would like to discuss additional ways to get involved or learn more about this important issue. Remember, time is of the essence as we expect the U.S. Senate to take this issue up in September!
-Leah Gardner
Leave a Comment » | Action Opportunity, Environment, Poverty, cap and trade | Tagged: cap and trade, climate-change, Environment, low-income | Permalink
Posted by leahgardner
August 17, 2009
If you have an interest in environmental, low-income or social justice issues, there is an important conversation taking place this Tuesday that you should be part of. The Convening on Climate Change will provide a great deal of information about the many ways that climate change and related legislation will impact low-income communities. The convening - which will take place at the Minneapolis Urban League this Tuesday, August 18, from 1:00 – 3:00 p.m. - will give you the chance to learn from the diverse perspectives of our speakers:
- Consumer Relief, Minnesota Budget Project
- Weatherization of Homes, Minnesota Community Action Partnership (CAP)
- A Labor Perspective, Minnesota American Federation of Labor and Congress of Industrial Workers (AFL-CIO)
- Climate Justice and Green Jobs, Environmental Justice Advocates of Minnesota (EJAM)
- A Faith Perspective, Lutheran Coalition for Public Policy in Minnesota (LCPP)
With climate change legislation already moving in Congress, there will also be time to connect with other local organizations to talk about priorities, common interests and easy ways to get involved. If you have a particular interest in consumer relief, green jobs or weatherization there will be an opportunity to learn more about one of these issues in detail during break-out sessions. The event is free and open to all, but RSVPs are requested. If you have questions, you can contact me at 651-757-3063 or leah@mncn.org.
I hope to see you there!
Want more background on this issue? Read some of our previous blog posts:
-Leah Gardner
Leave a Comment » | Environment, Poverty, cap and trade | Tagged: cap and trade, climate-change, consumder relief, green jobs, weatherization | Permalink
Posted by leahgardner
July 16, 2009
We’ve been talking about climate change legislation on our blog for some time. Now we are seeing real movement on this issue at the federal level. The American Clean Energy and Security Act (H.R. 2454) took a huge step forward on June 26th when it passed the U.S. House of Representatives. This important climate legislation impacts low-income households in many ways, but perhaps most significantly in that it provides a starting point for addressing serious climate change issues - like pollution and extreme weather – that disproportionately effect vulnerable, low-income communities.
A major element of the legislation is that it institutes a cap-and-trade system which will set a limit on the amount of greenhouse gases that businesses are allowed to emit, creating emissions allowances. The bill uses revenues from the sale of 15 percent of the emissions allowances to directly reimburse lowest-income households for their increased expenses as prices for energy and energy-intensive goods are expected to rise.
This relief would be provided on a monthly basis to the lowest-income 20 percent of the population, or roughly those below 150 percent of the poverty line, through an existing mechanism known as an Electronic Benefit Transfer (EBT). A small amount of additional relief is provided through an expansion of the Earned Income Tax Credit (EITC) for low-income workers without children, a group that is difficult to reach through the EBT system. You can learn more about how low-income households would benefit from the bill in a new report from the Center for Budget and Policy Priorities, “How Low-Income Consumers Fare in the House Climate Bill.”
There are many elements of the current legislation that are strong positives for low-income communities. This act will make strides in cleaning up the air to create healthier low-income communities, and it will do so without harm to the budgets of the lowest-income households. It also provides for new economic opportunities such as green jobs and increased funds for weatherization programs.
There are many vocal opponents of this legislation, so it is important that the Minnesota members of Congress that voted for H.R. 2454 (Reps. Ellison, McCollum, Oberstar, Peterson and Walz) hear from low-income advocates thanking them for their support. Find out more about how to contact your representative and please call today.
However, as action on the bill shifts to the U.S. Senate, there are some elements of the bill that we believe can be improved:
- Consumer relief in the House bill phases out completely at 160 percent of the poverty line (about $35,000 for a family of four). We urge the Senate to extend relief to all moderate-income families.
- In the House bill, relief is provided based on what the Energy Department calculates as a household’s average reduction in purchasing power. Given the high heating costs in our state, some Minnesota families will face higher than average reduction in purchasing power if energy costs increase. Funds should be allocated to the existing Low-Income Home Energy Assistance Program (LIHEAP) which provides assistance to low-income consumers who face utility shut-offs or other hardships.
You can learn more about our position on how to improve the bill in the Senate by reading “American Clean Energy and Security Act: Impact on Low- and Moderate-Income Minnesotans.” The Senate is expected to take action on this bill in September.
-Leah Gardner
1 Comment | Action Opportunity, Environment, Poverty, cap and trade | Tagged: cap and trade, climate-change, low-income, federal, Congress, EITC, greenhouse gases, energy assistance, LIHEAP | Permalink
Posted by leahgardner
June 24, 2009
As some of you may realize, climate change policy is in motion at the federal level right now. The American Clean Energy and Security Act (HR 2454, authored by Reps. Waxman and Markey) is currently being amended in the House (expected to hit the floor before the July 4th break, and potentially as soon as Friday, June 26) and hearings on the legislation have already begun in the Senate (expected to begin serious work on the bill closer to fall).
What you may not realize is that the proposed cap-and-trade policy designed to reduce greenhouse gases has important implications for low- and moderate-income households.
Need a refresher on what cap-and-trade is? Cap-and-trade sets a limit on the amount of greenhouse gases that businesses are allowed to emit, which creates a new commodity by auctioning allowances for polluting. Energy companies will probably need to pay for allowances, an expense they will likely pass along to their consumers. That includes low-income families. This price increase will affect not just utility bills (which accounts for less than half of the overall hit to a low-income household’s budget), but also goods and services with significant energy inputs, such as food and gasoline. Low-income consumers spend a larger portion of their budgets on such basic necessities and often do not have the ability to reduce their energy usage by doing things like buying energy-efficient appliances or weatherizing their homes. It is critical that they receive consumer relief.
Although implementing a cap-and-trade system will have a financial impact on lower-income consumers, the alternative is worse. If we do nothing, low-income communities will continue to be hurt by the negative effects of climate change, such as pollution and extreme weather. Low-income communities are particularly vulnerable to these changes.
Thankfully, the current federal legislation has a solution: consumer relief for the lowest 20 percent of the population to hold them fully harmless from increased costs. Although the delivery mechanisms for providing this relief are frequently being tweaked, the bill currently uses an existing mechanism (the Electronic Benefit Transfers, or EBT) to provide efficient delivery of adequate relief to the lowest income households.
Although HR 2454 currently includes protections for low-income households, this legislation has a long way to go before it is finalized. Policymakers are beginning to express that they are not hearing enough from low-income consumers and service-providers. If we want to see these important provisions for low-income households remain intact, or even improve, then those who are concerned about low-income communities need to speak up.
Call your Congressman and ask for their vote in support of HR 2454 and the critical provisions of consumer relief for low-income households. To learn more about our stance on the current legislation or how you can take action, contact me at 651-757-3063 or leah@mncn.org.
-Leah Gardner
1 Comment | Poverty, cap and trade | Tagged: cap and trade, revenues | Permalink
Posted by leahgardner
April 27, 2009
Congressional Democrats and senior Obama administration officials have reached a tentative agreement on the President’s $3.5 trillion proposed budget according to a story in last Friday’s Washington Post.
The House-passed budget resolution cut $7 billion from the President’s request for non-defense domestic discretionary spending while the Senate-passed budget resolution spends $15 billion less than the President’s request. The tentative budget agreement proposes cutting $10 billion from the President’s request. The non-defense discretionary portion of the budget includes annual funding for a broad range of federal spending, including affordable housing, education, environmental protection, health care, medical research, economic support to keep people out of poverty, services for people with disabilities and more.
In a closely-watched decision, the tentative agreement does not permit the use of a budget procedure known as “reconciliation” for President Obama’s proposed cap-and-trade climate change initiative. This means that such legislation may be subject to a filibuster by opponents in the Senate and would effectively need 60 votes to pass. If reconciliation had been applied to the climate change legislation, it would have needed only 51 votes to pass the Senate. The Obama administration’s climate change initiative is controversial in both the U.S. House and Senate. One of the key concerns is whether revenues that would be raised from any auction of carbon emission permits would be used to provide relief to low- and moderate-income families that would be faced with higher utility bills. (We blogged on this issue last week.)
On taxes, the tentative agreement would continue to exclude millions of taxpayers from the alternative minimum tax for three more years, but only if the House moves to adopt budget rules to prevent the deficit from increasing.
Budget conferees from both the House and Senate are expected to meet next week. No members of Minnesota’s Congressional delegation have been appointed to be conferees. When agreement is reached and a conference report is issued, it goes to the House and Senate floor for final approval. No amendments are permitted on conference reports. The final budget conference report is not signed by the President because it is not a law, but it will set the framework for all spending and tax bills this year.
-Steve Francisco
Leave a Comment » | Federal Budget | Tagged: Budget Process, cap and trade, Federal Budget, Taxes | Permalink
Posted by Steve Francisco
April 22, 2009
What’s cap-and-trade? Well, cap-and-trade policies set a limit or “cap” on the total amount of greenhouse gases that businesses are allowed to emit, essentially creating a new commodity by distributing allowances for polluting. Cap-and-trade policies are getting attention at both the regional and federal level. For example, President Obama’s recent budget proposal would implement a cap-and-trade system where 100% of emissions allowances would be auctioned off to pollution sources such as power plants, industries and refineries. Auctioning off these allowances, or permissions to pollute, could generate billions of dollars in new revenue.
Obviously, there is an urgent need to find ways to limit greenhouse gas emissions. However, we should be careful to protect low and moderate-income consumers from the potential burden of higher energy prices. For those in the lowest income quintile with an average annual income of below $27,500, even a 15% reduction in emissions could cost an average of $750 in increased energy costs.
The good news is we can both decrease greenhouse gas emissions and protect vulnerable consumers.
The Center on Budget and Policy Priorities, for example, recently recommended one option: a “climate rebate.” A climate rebate can be funded with revenues raised from auctioning off emissions allowances. For low-income families, the rebate can be distributed using existing systems including the Electronic Benefit Transfer (EBT) systems and the Earned Income Tax Credit (EITC). For middle-income families, a climate tax credit would be a more appropriate vehicle.
Of course, there are also other options. The key, however, is that we must auction allowances to raise revenues to help mitigate the financial impact on low- and moderate-income families. If we just give those allowances away to the pollution-generating businesses, we won’t have the resources to help.
The debate on cap-and-trade policy is really heating up, so it is important for people who are concerned about low- and moderate-income families to start taking notice and start actively supporting greenhouse gas policies that will both protect the environment and protect vulnerable families.
You can contact me for more information at 651-757-3063 or leah@mncn.org.
-Leah Gardner
Leave a Comment » | cap and trade | Tagged: cap and trade, climate rebate, emissions, greenhouse gas | Permalink
Posted by leahgardner
