[StBernard] Landrieu, Graham, Lincoln, Warner Introduce Bill to Reduce Economic Impact of Climate Legislation

[Westley Annis]

Landrieu, Graham, Lincoln, Warner Introduce Bill to Reduce Economic Impact
of Climate Legislation

 

WASHINGTON - United States Senators Mary L. Landrieu, D-La., Lindsey Graham,
R-S.C., Blanche Lincoln, D-Ark., and John W. Warner, R-Va., today introduced
bipartisan legislation that will protect consumers and businesses from the
potential runaway costs and economic instability resulting from climate
change legislation being developed in Congress.

"If we are going to address climate change in a meaningful legislative way,
it is vital that Louisiana businesses and consumers remain protected from an
untested energy market that, without proper controls, could prove to be very
volatile," Sen. Landrieu said. "The Carbon Market Efficiency Board will be
the new market's watchdog and will ensure that climate change legislation
will effectively reduce the dangers of global warming without destabilizing
the economy or hurting consumers. I am proud to have developed this
bipartisan, commonsense legislation with Senators, Graham, Lincoln and
Warner."

"We need leeway and flexibility to be built into any cap and trade system,"
Sen. Graham said. "I am concerned about the potential costs of climate
change legislation.  Our approach will bring much-needed balance to any
future system and ensure that the businesses and utilities in South Carolina
have some certainty in which they can make decisions surrounding investment
and compliance." 

"For a state like Arkansas, which is disproportionately rural, it is
important that someone be at the helm making sure the greenhouse gas
emissions market does not hurt our consumers or local businesses," Sen.
Lincoln said. "This proposal provides the necessary oversight that will
ensure the market remains healthy and will encourage the development of new
technology, while keeping energy prices from going too high and posing a
heavy burden for many Arkansans."

"In my 28 years in the Senate, I have focused above all on issues of
national security, and I see the problem of global climate change as fitting
within that focus," Sen. Warner said. "As we proceed to legislate on climate
change, we need to be careful to protect our economy in the process.  I
intend to include this legislation in the climate change bill that I am
drafting with Senator Lieberman, and hope that it will help allay the
concerns of some Senators who are concerned about the economic impacts of
cap-and-trade legislation."

Cap-and-trade legislation, which is currently being reviewed in the Senate,
will reduce greenhouse gas emissions by creating a new market where permits
for emitting greenhouse gases will be traded and sold. The new market could
be worth hundreds of billions of dollars, offering tremendous opportunity
and significant risk.  

The bipartisan measure introduced today works to mitigate the economic
impacts of any cap-and-trade law.  It creates a Carbon Market Efficiency
Board, modeled on the Federal Reserve Board of Governors, to ensure the
market for allowances, or tradeable permits to emit greenhouse gases, will
be efficient, stable, and transparent. The Carbon Market Efficiency Board
will exert strong market oversight, and protect consumers and businesses
from economic instability and severe price spikes. 

When necessary, this independent panel can control adverse economic impact
of the new cap-and-trade market by:

*         Increasing the amount of allowances that industries can borrow
from allocations in future years;

*         Expanding the amount of time allotted to borrowers to repay their
allowances; 

*         Lowering the interest rate for borrowing allowances;

*         Expanding the total amount of allowances allocated in a given year
by borrowing from the total number of allowances that will be granted in
future years.

The case for the legislation is reinforced by research conducted at Duke
University's Nicholas Institute for Environmental Policy Solutions. The
Institute's Director, Timothy Profeta, will testify about the legislation at
a hearing held today by the Senate Environment and Public Works Private
Sector and Consumer Solutions to Global Warming and Wildlife Protection
Subcommittee. The hearing, titled "Economic and International Issues in
Global Warming Policy" will be held at 2:30 p.m. in room 406 of the Dirksen
Senate Office Building. 

 

 

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