Date: 01-Jul-09
Country: US
Author: Timothy Gardner
The climate bill that the U.S. House of Representatives passed on Friday contains several elements that could begin to push the energy industry away from fossil fuels and toward renewable energy.
The bill, which was introduced by U.S. Reps. Henry Waxman and Edward Markey, seeks to reduce U.S. emissions 17 percent by 2020 and 83 percent by 2050, from 2005 levels. Its future is uncertain in the Senate.
Below is a list of how the climate legislation could help spur new energy markets:
-CAP AND TRADE
* National cap and trade market covers 85 percent of carbon dioxide and other greenhouse gas emissions by 2016.
* Would auction 15 percent of emissions permits at start of program with the percentage gradually increasing over time.
-COAL PLANTS
* By 2025 all coal plants built after 2009 must capture half of their carbon emissions.
* Coal plants built after 2020 must capture 65 percent of their carbon emissions.
* Power plants that invest early in carbon capture and storage would be rewarded.
-RENEWABLE ENERGY
* Forces power utilities to generate 6 percent of their electricity from renewables like wind and solar power by 2012 and 20 percent by 2020.
* Energy efficiency can be used to meet 5 percent of the target, which can be raised to up to 8 percent by states that determine they cannot meet the goals.
-OFFSETS, or pollution credits generated by investments outside the cap and trade program by polluters in clean energy projects or forests, which soak up carbon dioxide.
* Account for up to 2 billion tons of emissions reductions per year.
* Half would come from domestic offsets and the other half from international programs.
-CLEAN ENERGY FUNDING TOTALING NEARLY $200 BILLION
* $90 billion to clean energy and energy efficiency.
* $60 billion to carbon capture and storage from fossil fuel fired power plants.
* $20 billion to electric vehicle programs.
* $20 billion to research and development.
-NUCLEAR
* Not mentioned widely in text of bill, but could be a big winner as it is virtually emissions free.
* More on nuclear could be hashed out in Senate.
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