Frameworks for Environmental Policy (Final Paper Main Points)

1).We are coming to a point where reform and action must be taken in order to preserve national security of our nation, decrease our amount of carbon emissions, and preserve our world’s environmental well-being. Issues such as air quality, water quality, and environmental preservation have been among those discussed among various political actors. However, energy consumption and use has been added to these debates connecting the very source of these problems. Also, numerous proposals, solutions, and initiatives have been drafted, enacted, and implemented only to witness incremental and gradual change over the course of three decades.

The oil industry will slowly decline and become a minimal presence in the realm of energy. Jobs will most likely be lost or phased out in this area, however many more will expand within development of renewable energy and green technology. The potential of the renewable-energy mandate on utility companies will result in placing additional burdens on ratepayers and consumers. However over time, the price of efficiency will pay off, merely it is perception and possibly impatience by the public that could cause potential problems. Most economists will agree that, in order to reduce our dependence on petroleum we must make the price of using it more expensive than the alternative.

2).The bill is sponsored by Democratic Congressman Henry Waxman (CA-30) who has along with co-sponsor Representative Ed Markey (D-MA). The bill was introduced last spring and was passed in the U.S. House of Representatives on June 26 by a vote 219-212. It has been sent to the Senate and possibly voted on with comprehensive debate this spring or summer. However, there have been talks of the Senate developing their own version or type of bill for debate. The Obama Administration, along with the Democratic controlled Congress are notable victors if legislation would become law.

Several utility and energy companies (Shell, Exelon, BP Solar, Entergy, and Renewable Fuels Association) have shown support for the bill along with manufacturing, labor, and agriculture companies. There are provisions in the bill that incrementally benefit these companies and industries, especially with the pollution offsets it outlines. Traditional environmental interest groups such as the Sierra Club have demonstrated strong support for ACES too. However, one notable organization, Greenpeace is against it stating that they disagree on the amount of minimal reduction required through the bill of emissions reduction. Many of the oil industry vehemently oppose this bill due to its threat to their profitable business.

3). The four main areas within the legislation that are yet unknown or speculative discussed by the EPA, DOE, and other private entities. One the EPA is not sure how advanced and developed nuclear technology will be, something to which is crucial for this legislation to be successful. Secondly, there is question to how many international offset projects will be available over the course of the next decade; this has the potential to skew benefits stated in emissions and agricultural offsets. Also, the exact amount of reduction of greenhouse gases during the course of the next 15 years is not solidified and could be altered by other unintended consequences. Lastly, and quite possibly one of the most important factors according to the EPA is the impact of the output based rebates to energy intensive and trade exposed industries.

This has consequences attached to that of the global economy, not only the United States. Moreover, the cost associated with funding for projects with ACES might not cover problems occurring during implementation, or may view policy in a normative perspective (accounting for issues in an ideal setting, instead of a realistic setting). One of the most debated aspects of the bill is that projections of future costs and pollution levels are very difficult to predict. Also, there is uncertainty about the future direction of the basic drivers of greenhouse gas emissions and the responsiveness economically, technologically, and behaviorally.

4). There are many things which the legislation looks to achieve through its language, these include renewable energy investments, new regulations, and programs dealing with climate change. Roughly $846 billion in new federal revenue will be generated over the next decade, while a projected $821 billion will be needed to meet the bill’s mandates. The bill contains numerous clean energy provisions such as stricter renewable electricity standards, more investments in clean energy, support of private investment in clean energy, and a modernization of our electrical grid. This mandates the entire nation to have at least 20 percent of energy use stem from renewable energy by the end of the decade. Also, roughly $200 billion will be allocated through the next 15 years towards state programs in energy efficiency, carbon capture technology advancement, and more research and development for renewable energy.

One of the more important and larger projects with the American Clean Energy and Security Act is the investment and expansion of transmission lines for smart grid technology for our nation. Additionally, there are energy efficiency provisions such as building, appliance, and vehicle standards listed within the bill which attempt to make our building structures more efficient by 50 percent towards the end of the decade. Furthermore, the legislation seeks to take a preemptive and proactive stance of combating climate change such as capping carbon emissions from major polluters, prevention of tropical deforestation, emission and agricultural offsets, cost-containment measures, and lastly carbon capture programs. The extensive nature of these programs strives to reduce carbon emissions by 30 percent in 2020 and 80 by 2050 of the 2005 pollution levels.

5). The primary government entities responsible for implementation of the legislation if signed into law would be the Environmental Protection Agency, Department of Energy, Department of Transportation, along with minimal roles from Department of Education, and Department of Labor. Much of these organizations will perform enforcement, inspection, and implementation of programs outlined within the bill. New technologies in energy are available in both private and public sectors, and are vital to the bill’s success.

There is funding through some of the programs listed in the bill provided by the federal government in credits, grants, and loans. In dealing with these sources of funding local governments will be vital in distribution and assurance that money is being properly utilized. Along with new funding will be the creation of new intergovernmental organizations and entities such as the new USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee, the International Climate Change Adaption Program, and Energy Efficiency and Renewable Energy Worker Training program. U.S. government institutions, as well as state and local governments have some experience in dealing with this type of issue stemming from environmental legislation in the 1970s and early 1990s adopting new regulations and standards. Due to its large scope of addressing several issues, it may take some time to witness successful implementation though.