Global Warming
Making it CLEAR: Bipartisan bill cuts emissions and pays dividends to consumers
Last December, Senators Maria Cantwell (D-WA) and Susan Collins (R-ME) introduced the Carbon Limits and Energy for American Renewal (CLEAR) Act (S. 2877), a comprehensive clean energy bill that requires fossil fuel producers to pay for their pollution and returns the revenues back to Americans in equal per-person payments.
This bipartisan bill lays out a system of capping carbon that will reduce greenhouse gas emissions 20 percent by 2020 and 83 percent by 2050 (based on 2005 levels). The bill also sets up monthly auctions to sell “carbon shares” to polluters. And only polluters are eligible to participate in the auctions—no Wall Street traders or speculators will be allowed to influence the price.
By placing predictable limits on carbon emissions from fossil fuels, the bill creates business incentives for clean energy technology. In a press release, Senator Collins stated that “the CLEAR Act would help reduce our dependence on foreign oil, promote alternative energy and energy conservation, and advance the goal of energy independence for our nation. Climate change legislation must protect consumers and industries that could be hit with higher energy prices.”
And the CLEAR Act will do just that—it eases the energy cost burden that producers will pass on to consumers by giving 75 percent of the auction revenues back to American families each month. The remaining 25 percent would be invested in the transition to a clean energy economy, on activities like boosting energy efficiency, getting energy assistance to communities, and ramping up clean energy research and development.
In his State of the Union address in January, President Obama stated that he wants a comprehensive energy and climate bill passed in 2010. The CLEAR Act is good first step, cutting carbon pollution and protecting consumers’ pocketbooks at the same time. Going forward, the CLEAR Act will be heard first in the Senate Finance Committee. For more information, contact J. Drake Hamilton at hamilton@fresh-energy.org.