Clean Energy Jobs and American Power Act Passes First Committee

This morning the Senate Environment and Public Works (EPW) Committee reported out the Clean Energy Jobs and American Power Act (CEJAP). Due to the absence of Republicans from the markup, the Committee was unable to consider amendments to the bill before voting on it. Read the Alliance's summary of the legislation's energy efficiency provisions, or view our press release praising the bill's progress.

Committee Held Spate of Hearings on the Bill

In the lead-up to this week's markup, EPW Committee Chairman Barbara Boxer (D-Calif.) held several hearings last week in an attempt to familiarize the Committee with the Chairman’s Mark of CEJAP. From Tuesday, Oct 27 to Thursday, Oct 29, a total of nine panels were held in an effort to give voice to a myriad of witnesses with expertise or interest in a cap-and-trade program to reduce greenhouse gas (GHG) emissions.

Administration Witnesses: The first panel comprised witnesses from the Obama Administration, each of whom made an effective case for the passage of strong cap-and-trade legislation. U.S. Environmental Protection Agency (EPA) Administrator Lisa Jackson cited the EPA’s finding that implementing CEJAP would cost the average American household less than 50 cents per day in 2020, and that regional differences in cost would be small. Secretary of Energy Steven Chu stressed the role than a cap-and-trade program could play in reviving American economic leadership.

U.S. Federal Energy Regulatory Commissioner John Wellinghoff described a cap-and-trade program as one way to correct the market failure of GHG emissions’ externality cost. Once the cost of emissions is reflected in the price of energy, he said, alternatives like energy efficiency would become even more cost-effective. He emphasized the role that investments in energy efficiency could play in reducing the cost of a cap-and-trade program.

Transportation Secretary Raymond LaHood followed with testimony that focused on the necessity of addressing vehicle miles traveled in order to reduce transportation emissions. He cited the recent Moving Cooler report, released this summer by a group of advocacy organizations, which found that a combination of transportation strategies could reduce transportation emissions by 15 percent by 2050.

Utility, Regulatory Commission and NGO Witnesses: Later that week, the EPW Committee heard testimony from a number of energy utilities, public utility commissions and environmental advocates. Utility witnesses disagreed on the benefits of a cap-and-trade program, while regulatory commissions requested more flexibility in the uses of allocations that would be provided to regulated utilities. The Environmental Defense Fund’s Nathaniel Keohane testified that the best distribution of allocations would direct them toward clean energy investments, preventing carbon leakage to other countries and protecting consumers through a flat monthly rebate. Since the rebate would not be in proportion to consumers' energy consumption, it would not discourage them from investing in energy efficiency and conservation.

Revisions to the Bill

After three days of hearings on CEJAP, the Committee released a revised version of the bill on Friday night. The bill includes technical changes, as well as limitations to the EPA’s ability to regulate GHG emissions under certain provisions of the Clean Air Act. It also revises the details of energy efficiency allocations somewhat, permitting the use of state energy-efficiency-and-renewable-energy funds for programs administered by non-state entities and permitting states to put some of their funds toward the State Energy Program and the Weatherization Assistance Program.