We did a brief summary of our likes and dislikes of the original draft discussion bill.  That was a long time ago in legislative terms!  But today, no normative statements – just some highlights from the summary of the bill.

The American Clean Energy and Security Act:

• Requires retail electric companies to source a percentage of their load from renewable sources, beginning at 6% in 2012 and gradually rising to 20% in 2020.  A portion of this requirement may be met with efficiency savings.
• Provides incentive programs for smaller renewable projects, such as rooftop solar, which are built into the electricity credit system.
• Includes a bunch of stuff on carbon capture and sequestration – since there is currently not a deployable technology, most of this section is geared towards figuring out how to make CCS deployable.  Investigation of state geological protections, creation of an incentive program for commercially deployable CCS, etc.
• Establishes technology standards for coal power plants built after 2020.
• Provides incentives for large-scale electric transportation programs, development of electric vehicles, development of and integration with smart-grid infrastructure.
• Provides incentives for a variety of energy efficiency projects across various sectors.
• Addresses adaptation measures.
• Outlines tons of funding for research.

As far as the climate change/emissions section, we are looking at a cap and trade system that allows offsets.  Distribution will be by both allocation and auction, with a decreasing % of allowances allocated each year.  Reduction targets are from 2005 levels – 97% by 2012, 80% by 2020, 58% by 2030, and 17% by 2020.

The bill also includes an impressive worker adjustment assistance section, with substantial support for workers displaced as a result of the new energy policy and provisions protecting low-income families. 

All in all, not bad.  It’s long, it’s comprehensive, and I’m sure Congress will have lots to fight about.  But isn’t that what Congress does best?

It can be easy to get lost in the sea of technical jargon accompanying any detailed discussion on climate change.  While they are just the tip of the proverbial iceberg, knowing these ten climate change terms will help you to understand what everyone is carrying on about.

Greenhouse Gases (GHGs)

Naturally occurring compounds in the Earth’s atmosphere that allow sunlight to enter the atmosphere.  When sunlight is reflected off the Earth’s surface, these gases trap the heat in the atmosphere.  Six GHGs – carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride – will be classified as pollutants under the Clean Air Act.

CO2

Of the greenhouse gases, CO2 is receiving the most press these days.  Our cars and factories breathe it out.  Plants breathe it in.  The problem is that these days, we have more cars and factories and fewer plants.  There is some debate if other GHGs will be addressed in climate change legislation.  There is no debate about CO2.

Tipping Point

“The levels at which the momentum for change becomes unstoppable.”  In climate change terms, the atmospheric concentration of CO2 at which some scientists argue there will be no chance of preventing negative consequences of climate change.  Some refer to it as a scenario of “irreparable change” – for example, the loss of polar ice sheets that might never be regained.  There is still debate about whether a tipping point exists and, if so, the concentration of CO2 in the atmosphere at which this would occur.  However, some scientists are concerned that we are approaching the tipping point more quickly than originally predicted.

Mitigation

The process by which human beings attempt to prevent or reduce climate change.  Emissions reductions, a shift towards renewable energy, reforestation and prevention of further deforestation, and carbon capture and sequestration all fall under the broader term of mitigation.

Adaptation

The process by which human beings adjust to global changes brought on by climate change.  One extreme example of adaption is can be found in the Maldives, an island nation which is preparing to relocate its entire population in the event that the country is submerged by rising ocean waters.

Business As Usual (BAU)

The current emissions level and trajectory for emissions growth.  Many models have a projection for results based on BAU emissions.

Carbon Capture & Sequestration (CCS)

Also known as carbon capture and storage, CCS is an umbrella term for the theoretical process by which CO2 is collected from the atmosphere or at the emission source, and then stuck somewhere not in the atmosphere.  While this technology is not yet deployable, it is getting a big chunk of money.

Renewables

Add it to your spellchecker, because this new word is here to stay.  Renewables are sources of energy that are continually naturally replenished, such as wind, solar, geothermal heat, rain, and tides.  In contrast, while fossil fuels are natural, they are not naturally replenished in a reasonable time for our species.

Cap & Trade

The type of climate change policy proposed by the draft House bill released in April.  A cap and trade program is based on a government-mandated ceiling of sector/industry emissions with a system of permits allowing companies a certain amount of emissions, generally measured in millions  of metric tons.  (For reference, the average carbon footprint of a U.S. resident is 20 metric tons per year.)  Companies can then buy and sell permits, which should create a market mechanism for the pricing of carbon.

Copenhagen

The Copenhagen Climate Conference in December 2009 is the last meeting of the members of the United Nations Framework Convention of Climate Change before the renewal of an international agreement on climate change.  At this conference, world leaders will come to an agreement to be adopted upon the expiration of the Kyoto Protocol in 2012 – or they won’t.  Only time will tell.

I must disclaim by saying I did not (and probably will not) read the full text of the bill.  It is over 600 pages long, I am preparing for a cross-country move, and I have a day job.  It’s just not likely to happen.  That being said, here is a brief overview of my thoughts on the bill.

Things We Like:

• Aggressive emissions reductions targets – more aggressive, in fact, than President Obama’s.  20% from 2005 levels by 2020 and 83% by 2050
• Smart grid for electricity.  A smart grid would lay the groundwork for so many important developments, including electric cars and increased utility of residential renewable energy sources.
• Green jobs and worker
• It’s a draft bill!  It’s movement!  We’re thrilled!

Things We Don’t Like:

• This bill leaves many questions unanswered.  How will allowances be distributed?  How will revenue generated from the sale of carbon permits be used?
• Free permits to carbon-intensive industries.  While I understand that steps must be taken to cushion carbon-intensive industries from the cost impact of climate change, I don’t know that this is the way.  However, it will make the bill more politically salable, which is important.
• $10 billion for carbon capture and storage.  Wouldn’t it be better if we just produced renewable energy?  I worry that pouring money into CCS technology might encourage the construction of new coal power plants, especially in developing countries.  I think this is a step in the wrong direction.  Again, politics at work here.
• Performance standards for new coal fired power plants.  Can we please not build any more of these?

Things To Note:

• Offsets – this bill provides for them.  There are limits on how many companies may use as well as a scientific advisory board to monitor offset quality.
• Unlimited banking and limited borrowing allowed.
• All regions of the country would be required to source 25% of energy from renewable sources by 2025.
• The United States Climate Action Partnership (USCAP) has called the bill a “strong starting point” for dealing with emissions.

The Waxman-Markey bill is only a discussion draft, and clearly there is much to be done in the way of negotiating specific details, especially in the area of allowance distribution.  But it is a good start.  More to follow later on the individual sections of the bill.