The House legislation is sponsored by Commerce Committee Chairman Henry Waxman (D-California) and Rep. Ed Markey (D-Massachusetts). Click here for a summary of the legislation.

The legislation has four titles –  1) a “clean energy” title that promotes renewable sources of energy and carbon capture and sequestration (CCS) technologies, low-carbon transportation fuels, clean electric vehicles, and the smart grid and electricity transmission; 2) an “energy efficiency” title that increases energy efficiency across all sectors of the economy, including buildings, appliances, transport and industry; 3) a “global warming” title that places limits on the emissions of greenhouse gases; and 4) a “transitioning” title that protects US consumers and industry and promotes green jobs during the transition to a clean energy economy.

Highlights of the proposed legislation
    * Renewable Energy – a national target of 6 percent of electricity from renewable energy in 2012 rising to 25 percent in 2025;
    * CCS – an early demonstration program and performance standards for new coal-fired power plants;
    * Smart Grid – encouragement for federal and state government and the utility industry to promote smart grid technology;
    * Energy Efficiency – programs to establish higher energy efficiency standards for industry, public buildings and transport. On May 19th, President Obama announced new efficiency goals for cars and light trucks.
    * Reducing greenhouse gas emissions – the draft establishes a cap-and-trade program for reducing greenhouse gas emissions from electric utilities, oil companies, large industrial sources, and other entities that collectively account for 85 percent of US greenhouse gas emissions. Under this program, emitters must have tradable allowances for each ton of carbon released into the atmosphere. The program reduces the number of available allowances issued each year to ensure that emissions are reduced over time. The targets are 3 percent below 2005 levels in 2012; 20 percent below 2005 levels in 2020; 42 percent below 2005 levels in 2030; and 83 percent below 2005 levels in 2050.

Comments
Speaking for myself, Congress has taken an enormous step forward by starting this discussion on climate change action. After years of denial, the US has decided to take action, which must come sooner rather than later. US leadership will be essential in the run up to Copenhagen.

President Obama praised House Democrats for “extraordinary progress” in their negotiations on global warming and energy legislation at the center of his domestic agenda.

“This is a major step forward in building the kind of clean energy economy that will reduce America’s dependence on foreign oil” he said. Obama added: “I once again call on Congress to send me legislation that places a market-based cap on carbon pollution, which will then drive (...) the kind of innovation and dynamic, new, clean energy economy that can create jobs and new businesses all across America.”

Jonathan Lash, President of the World Resources Institute said “ Chairmen Waxman and Markey and members of their committee have broken the federal logjam on global warming legislation. Their long overdue, common sense policy addresses not only the global threat of climate change, but the economic vitality and national security of our nation. We are particularly pleased with the timing of this legislation. It sends an important signal to the world’s nations, who gather for climate talks in Bonn next month, that the United States is ready to play a full part in crafting a new treaty to reduce greenhouse gas emissions.”

Dan Lashoff, Director of the Climate Center for the Natural Resources Defense Council said “Comprehensive clean energy legislation is now poised to advance a clean energy future for America (...) As the bill moves forward, we will urge Congress to ensure that the legislation is as strong and effective as possible to deliver safe, clean energy to America, increase energy efficiency, and protect the planet for future generations.”

The next steps will include passage of the legislation by the full house, followed by the passage of a bill in the Senate. There is no timetable set for Senate consideration of the bill.

Jonathan Temple is the director of Bellona USA