Senate to begin deliberating cap and trade legislation

With Congress heading back into session this week, the Senate agriculture committee is set to review HR 2454, the American Clean Energy and Security Act of 2009. The act sets limits on the amount of greenhouse gases emitted by entities that generate electricity and from other industrial activities and provides credits for entities that convert greenhouse gases into other gases with little or no carbon dioxide equivalent value. For example, by 2012, the quantity of greenhouse gas emissions should not exceed 97% of the quantity of United States greenhouse gas emissions in 2005. By 2020, the limit should be 80% of the quantity emitted in 2005.

HR 2454 will also provide energy tax credits and rebates to certain low-income families to off-set the impact of higher energy prices.

FreedomWorks, a conservative think tank and grassroots lobbying organization, estimates that energy costs per American household would increase between $800 to $1500 a year by 2015. FreedomWorks also argues that HR 2454 would be ineffective as policy to combat climate change. By their estimate, maximum drop in the Earth's temperature would only be .07 degrees Celsius by 2050. In addition, FreedomWorks argues that Europe's efforts at capping greenhouse gas emissions have not worked, with 12 out of 15 European Union member countries failing to meet greenhouse reduction targets.

The Congressional Budget Office estimates that between 2010 and 2019, HR 2454 will increase federal revenues by $846 billion while direct spending needed to enact the legislation's requirements will increase by $821 billion. The CBO expects budget deficits by 424 billion over the same period.

HR 2454 passed out of the House on July 7, 2009. The Senate agriculture committee's review will take place Spetember 9, 2009 at 10:00 am.