Senators Warner, Lieberman Introduce Climate Change Bill

U.S. Senators John Warner (R-Va.) and Joe Lieberman (I/D-Conn.) yesterday introduced their much anticipated economy-wide cap-and-trade legislation, “America’s Climate Security Act of 2007,” or
S. 2191. 

The bill calls for capping U.S. emissions at 2005 levels by 2012 and then, gradually cutting emissions to 70 percent below those levels by 2050.  The bill would create a national greenhouse-gas registry, requiring any facility that emits more than 10,000 tons of carbon per year to report their emissions on a quarterly basis.  Such facilities would first be required to submit their emissions report for the years 2004–2007 to the U.S. Environmental Protection Agency Administrator by March 31, 2009. 

Initially, the bill would distribute allowances, or credits, to industry, but this would decrease during the next several decades in favor of an auction of remaining allowances.  Companies can generate credits through investment in carbon sequestration and storage technologies, as well as investment in reducing emissions from non-covered entities (such as the agricultural industry).

The revenue generated from the auction of allowances would be used to mitigate increased energy costs for low-income families and deploying and investing in advanced technologies for reducing emissions.   Proceeds also would be used to fund a climate-change worker-training program for employees displaced by the act. This would be accomplished by providing temporary wages, healthcare, and training for the new jobs that will be created as a result of this legislation. 

To encourage global efforts to reduce emissions, the bill sets up a system where non-domestic industries would be required to buy and submit allowances to import products into the United States.  Those countries classified as still developing under the World Trade Organization definitions, or those that have a cap-and-trade program similar to the act would be exempt.  The bill also sets up a Carbon Market Efficiency Board, which would monitor and act when necessary against significant economic impacts resulting from its enactment. 

Senators Norm Coleman (R-Minn.), Elizabeth Dole (R-N.C.), Susan Collins (R-Maine), Tom Harkin
(D-Iowa), Ben Cardin (D-Md.), Robert Casey (D-Pa.) and Amy Klobuchar (D-Minn.) are all original co-sponsors of the bill. 

Sen. Lieberman’s Environment and Public Works’ Subcommittee on Private Sector and Consumer Solutions to Global Warming and Wildlife Protection is scheduled to hold a hearing on the legislation next week. 

Click here to view the language of the bill.

Contact David Hubbard or Andy O'Hare.

Senate Committee Approves Bill to Bail out Flood Program

The U.S. Senate Committee on Banking, Housing, and Urban Affairs on Wednesday approved legislation to reauthorize the federal government's flood insurance program.

The committee voted 21-0 for the bill that would forgive the program's $18 billion debt and require the gradual phase-in of actuarially-correct rates for vacation and second homes.  It also would increase premiums on properties that have suffered repetitive losses. 

Unlike the House bill that contains language directing the Federal Emergency Management Agency to consider whether building codes can help reduce flood losses, the Senate bill does not address what is perhaps the most significant underlying cause for the flood program’s insolvency, namely substandard construction.  Also unlike the House bill, the Senate measure does not contain language that would add optional wind coverage to the program. Senators Mel Martinez (R-Fla.), and Charles Schumer (D-N.Y.), were prepared to offer an amendment to provide optional wind coverage but withdrew it to move the bill out of committee.

The Senate banking committee unanimously approved a similar measure in the 109th Congress, but that bill was blocked from floor consideration by Louisiana Senators Mary Landrieu, a Democrat, and Republican David Vitter, who feared that Senate bill would price many of their state's residents out of the program. It is not certain whether either Senator will place a hold on this year’s bill, although Sen. Landrieu has stated that she believes that the House bill will do a better job of stabilizing the property-and-casualty insurance market along the Gulf Coast.

Contact Robert Sullivan.

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