Reaction to Boxer-Kerry Climate Change Discussion Draft

For Immediate Release

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Reaction to Boxer-Kerry Climate Change Discussion Draft

Statement of Andy Wilson, Global Warming Program Director, Public Citizen’s Texas Office

WASHINGTON - The Boxer-Kerry draft includes some important measures to address climate change and create new green jobs, it is simply not sufficient to solve climate change or create the green jobs revolution we need. While an improvement in some ways over Waxman-Markey and its billions in giveaways to polluting special interests, the discussion draft put forth by Sens. Barbara Boxer (D-Calif.) and John Kerry (D-Mass.) still punts on many of the most contentious issues, such as how and to whom emissions allowances will be allocated or auctioned. Waxman-Markey started off similarly strong and vague but was weakened as it went through the committee hearing process. Sen. Boxer must work to strengthen the bill as she guides it through her Environment and Public Works Committee hearings.

The discussion draft calls for a 20 percent reduction in greenhouse gas pollution from 2005 levels by 2020. This is a slight improvement over the 17 percent called for by Waxman-Markey, but is far short of the goals our best science tells us we need to make. Specifically, the Nobel Prize-winning Intergovernmental Panel on Climate Change tells us in order to avoid the worst of global climate catastrophe, we need to cut our pollution levels 25 to 40 percent below 1990 levels.

Japan will cut its emissions 25 percent by 2020; the EU has signaled it may meet or beat that goal. Why would we set ourselves to lag behind the rest of the world? We must win the technology races in manufacturing advanced energy technology so we do not replace importing oil with importing solar cells.

The draft should be applauded for including strong language to protect consumers and protect the Environmental Protection Agency's (EPA) authority to regulate emissions in the future.

Among the changes we recommend to the draft are alterations to address these problems:

Allowances should be auctioned 100 percent. President Obama's budget continues to show revenues from a 100 percent auction and EPA analysis of Waxman-Markey found this to be the least regressive method of implementation.

Subsidies for nuclear should be removed. Despite recent findings by Federal Energy Regulatory Commission Commissioner Jon Wellinghoff that the United States will never need to build another traditional power plant, the bill spends considerable space on (Subtitle C, Sec 131) and would allocate significant resources to nuclear power. Nuclear is neither as carbon-free nor as safe as the draft language claims. Neither is it cost-effective. The nonpartisan Congressional Budget Office has estimated half of all federal loan guarantees for nuclear loan guarantees will fail, meaning any extension of these guarantees is a pre-emptive bailout of the nuclear industry leaving the taxpayers on the hook for up to half a trillion dollars.

The draft still relies on more than two billion tons in offsets - actually expanding permitted offsets from the Waxman-Markey language. This has huge potential consequences. It means that despite the intent of the draft, we could conceivably end up having failed to reduce emissions at all - and with major questions about whether alleged offsets were even achieved. While the offset oversight language is considerably better than in Waxman-Markey, it still is troubling that we are relying on offsets rather than actually decreasing our pollution.

The draft does nothing to improve vague language in Waxman-Markey, which could effectively grandfather more than 40 proposed coal-fired power plants, including up to a dozen in Texas alone. These proposed plants would be exempted from new performance standards in the bill, while a plant built just three years from now will have to reduce its greenhouse gas emissions by half.

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Public Citizen is a national, nonprofit consumer advocacy organization founded in 1971 to represent consumer interests in Congress, the executive branch and the courts.

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