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Climate Change and Sea Level Rise


Cap & Trade Climate Change Legislation

HR 2454 commonly called “Cap & Trade” is formally called the American Clean Energy and Security Act (ACES) sponsored by Representative Henry A. Waxman (CA) and Edward Markey (MA). The bill would create incentives for renewable energy and clean vehicles, provide funding for energy efficiency, place a limit on greenhouse gases and provide resources to help communities and ecosystems adapt to climate changes.

The bill establishes a cap and trade system for reducing global warming pollution from electric utilities, oil companies, large industrial sources and other entities that collectively are responsible for 85% of U.S. global warming emissions. The companies have tradable federal permits (trade) for each ton of pollution emitted into the atmosphere. The number of permits issued (cap) will be reduced each year so that global warming pollution is reduced by 3% below 2005 levels in 2012, 20% below 2005 levels in 2020, and 83% below 2005 levels in 2050. Each year the allowances would expire and the cap would be lowered with fewer allowances available the next year. This would create scarcity and incentivize innovation and conversion to greener technologies.

Adaptation
Our discussions focused on the Allowance portion of the bill and the creation of a Natural Resource Adaptation Fund. The bill includes measures that would help prepare communities for impacts of climate change already being experienced and enable the U.S. to protect public health, natural resources and wildlife from the harmful impacts of global warming. Both communities and federal agencies will be directed to prepare an adaptation plan, review climate impacts on matters within its jurisdiction, and develop plans for addressing those impacts. The Act also establishes a climate change adaptation fund to provide federal support for state, local and tribal adaptation projects.

The revenue created from the sale of the allowances would be used to reinvest in green energies, with 1% being currently proposed to go to a “Natural Resources Adaptation Fund” to be distributed to state and federal agencies. The remainder of the revenue would go back to business and consumers in rebates for investment in green technologies.

Recommendations
Our Suggestions on the bill included:
  • A requirement that all allowances be auctioned, not given away;
  • Applicants demonstrate a need for the purchase of allowances to eliminate the potential for market manipulation, similar to what speculation did to gas prices the past year
  • A larger proportion than the currently proposed 1% of sale revenue dedicated to the Adaption Fund;
  • Support of the “Capps amendment’ that directs adaptation funds finance projects that employ a natural systems approach prioritizing the restoration of natural systems that provide ecological services which help mitigate the impacts of climate change and sea level rise;
  • A dedicated funding mechanism to eliminate the need for annual appropriations.
There are a lot of issues to debate with this bill but in our visits with the various offices there was agreement that Florida is particularly susceptible to climate change from sea level rise, the frequency of extreme weather events -drought and flood, and impacts on water supply and water quality. There was broad agreement that strong climate legislation is in our countries interest for security, economic as well as environmental and water quality reasons. We just need to work out the details.

The House is hoping to vote on the bill before the August recess and the Senate is waiting to see how the how the bill fares in the House.
Posted 6/15/09