Daily Local News: Discussing Clean Energy Solutions

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Daily Local News: Discussing Clean Energy Solutions

By Jessica Corry, Published in the Daily Local News

Amid the heated debate on global warming and energy policy, a clean energy bill slated to be voted on in the U.S. House of Representatives later this week aims to address climate change by reducing carbon emissions through a cap-and-trade policy.

U.S. Rep. Jim Gerlach, R-6th, of West Pikeland, held an energy roundtable discussion Tuesday with leaders in the local business community to address concerns about how the American Clean Energy and Security Act would affect the manufacturing and utilities sector.

"I hope to gain the benefit of learning your thoughts on the legislation and what it would do both economically and environmentally," Gerlach told attendees, including Robert Powelson, a Pennsylvania Public Utility commissioner, and Nancy Keefer, president and chief executive of the Chester County Chamber of Business & Industry as well as representatives from energy companies Exelon and PPL, and various other businesses.

The discussion took place at the Chester County Economic Development Council headquarters on Constitution Drive.

The bill, written by senior House Democrats Henry A. Waxman of California and Edward J. Markey of Massachusetts, includes provisions for clean energy, energy efficiency and global warming in addition to allowance provisions for consumer protection.

It requires electric utilities to meet 20 percent of their electricity demand through renewable energy sources and energy efficiency by 2020.

The item of most concern to utility companies is the global warming provision, which places a cap on large domestic sources of carbon emission, such as electric utilities and oil refiners. These limits mandate that carbon pollution must be reduced by 17 percent below 2005 levels by 2020 and 83 percent below 2005 levels by 2050, a policy that is achieved by a system of tradable permits known as "emission allowances."

Capped sources can increase their carbon emissions if they can obtain offsetting emission reductions from uncapped sources at a lower cost. Furthermore, to ease the transition to a clean energy economy, approximately 80 percent of allowances will be distributed without charge during the early years of the program, phasing out after 2025.

Anne Crowley, of the Union of Concerned Scientists, was in support of the bill. She emphasized the economic benefits and environmental contributions in addition to the growth of green jobs that would result from an investment in clean energy.

"We see this bill as absolutely essential in terms of the scientific data regarding the impacts of global warming. It is not a question of choosing the environment over the economy with this bill but building a new green economy that is stronger in the end," Crowley said.

According to Gerlach, there are a number of positive aspects to the bill, including the incentive for renewable energy and the creation of green jobs. The area of greatest concern, he explained, is the cap-and-trade provision and the substantial cost impact on both businesses and consumers it would incur.

The Congressional Budget Office analysis concluded that by 2020, the overall impact on the average consumer household would be a $175 increase.

"I don't think anyone here today is against clean air and clean water and renewable energy," said Powelson. "However, at the end of the day with this legislation, businesses and residential rate-payers are going to have to foot the bill. This is a bad piece of legislature for Pennsylvania."

Other concerns voiced by business leaders at the meeting were how companies would compete with industries overseas in China and India, which do not have to cope with carbon emissions caps, in addition to the loss of jobs with offshore movement.

"This legislation would impose additional cost on the manufacturing industry and generate a movement offshore. The question is, how are we going to compete?" said Alan Blackburn of Titanium Metal Corp.

A key piece in the discussion was the Supreme Court ruling of carbon dioxide as a pollutant, thereby giving the Environmental Protection Agency power and authority to regulate its emission.

An Exelon Corp. executive asked to attendees whether the best method for reducing carbon output would be a command and control method in which the EPA comes in and mandates reduced carbon emission or should it be determined by demands of the marketplace.

Gerlach said he will base his decision on the final version of the bill, taking into account any changes made that would redress the significant cost impact in addition to any studies that would determine whether there would be a significant international impact on global warming without the involvement of China or India.

"I believe that good open debate and a few productive amendments would perhaps make the bill more effective," Gerlach said. "Suffice to say, we want to address global warming, however, we don't want to do something in a recession that would result in significant costs for both businesses and consumers."

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