Heeding President Obama’s request to bring him a cap-and-trade bill to limit and lower global warming pollution, Congress is turning up the heat on federal climate policy. For the first time in history, comprehensive energy policy that includes a cap on carbon emissions has passed out of committee in the U.S. House of Representatives, and is moving quickly toward a vote on the floor.

Minnesota’s elected leaders in Washington will soon have the opportunity to vote on this landmark legislation, but right now it’s in danger of being weakened. While the key ingredients of the bill—renewable energy and efficiency standards and a cap on carbon—will save consumers money, boost investment in cleaner sources of energy, and help speed the transition to a new energy economy, these elements must be strengthened to provide the most benefit—for Minnesota, and for the rest of the nation.

Cutting emissions will save consumers money

According to a new report by the Union of Concerned Scientists (pdf),  the United States can dramatically cut global warming emissions and reduce consumer and business energy costs at the same time with a smart federal plan.

The two-year, peer-reviewed analysis shows that combining a strong federal cap on emissions with other essential energy policies would allow the United States to meet science-based emissions reductions targets by 2030 while saving the average household $900 a year on electricity, heating, and transportation costs.

Businesses are expected to see a collective net savings of $129 billion, while consumer savings would add up to $126 billion across all regions of the country—even in coal-dependent areas like the Midwest. This comprehensive policy approach provides much bigger savings than a cap on carbon alone, and has the potential to reduce the country’s energy demand one third by 2030 and save the nation $1.7 trillion between 2010 and 2030.

National plan for carbon reduction a good first step, needs strengthening

The American Clean Energy and Security Act (ACES), sponsored by Representative Waxman, chairman of the House Energy and Commerce Committee, and Representative Markey, chairman of the subcommittee on Energy and Environment, establishes the nation’s first market-based cap-and-trade program (pdf) to reduce global warming emissions economy-wide.

The bill, which passed out of Waxman’s committee on May 21, also establishes a national renewable electricity standard (RES) (pdf) requiring that 20 percent of the nation’s electricity come from renewable sources by 2020 in combination with energy efficiency requirements. ACES also establishes standards for building efficiency, requiring new buildings to be 30 percent more efficient than business as usual in 2012 and 50 percent more efficient in 2016. The bill will also provide $20 billion to promote electric vehicles and other advanced technologies to reduce global warming pollution from our nation’s transportation sector.

While ACES is an important first step, a number of the bill’s provisions need to be strengthened in order to create the greatest savings for consumers and businesses. The RES should be strengthened to 20 percent by 2020 with additional separate standards for energy efficiency. In addition, pollution allowances under the cap should be sold to industries rather than given away for free. Revenue from selling the credits would be returned to consumers to help ease the transition to a low-carbon economy.

Governors’ climate coalition presses for national action

Adding to the momentum surrounding the federal climate bill, the governors of more than 30 states have formed a new alliance called the Governors’ Energy and Climate Coalition. The multi-state leadership effort is aimed at working with Congress to solidify a strong national energy strategy for action on global warming.

Many of the states have long been leaders in promoting the use of renewable energy and calling for significant reductions in global warming pollution, an increasingly important role for states given the lack of federal action on global warming to date. Midwestern governors from Illinois, Iowa, Kansas, Michigan, and Wisconsin have all signed the coalition’s Statement of Principles, which includes a comprehensive energy policy plan that will create millions of clean energy jobs, decrease our dependence on foreign oil, and reduce the impacts of global warming. Minnesota has yet to add its voice to the call for action.

Heeding President Obama’s request to bring him a cap-and-trade bill to limit and lower global warming pollution, Congress is turning