FOR IMMEDIATE RELEASE
April 29, 2008

Contact: Erika Masonhall, 202-224-4041

Latest Government Analysis of Lieberman-Warner Climate Bill Shows Lowest Costs Yet

WASHINGTON, D.C. - U.S. economic growth under the proposed Lieberman-Warner Climate Security Act would be virtually identical to growth in the absence of the law, according to an Energy Information Administration report released today. The agency is the official economic forecaster of the US Energy Department.

In EIA's analysis of the market-based climate bill authored by Senators Joe Lieberman (ID-CT) and John Warner (R-VA), the cost to US businesses of tradable allowances to emit greenhouse gas came in below even the modest figures projected by the Environmental Protection Agency last month.

"Two separate government analyses have now come to the same conclusion," said Lieberman. "Our bill curbs global warming without harming the US economy."

According to EIA, US GDP under the legislation would continue to grow. In 2030 it would hit a level just 0.3% lower than under a business-as-usual scenario. Even when EIA picked alternative, pessimistic assumptions regarding the cost and availability of clean energy technologies, the agency pegged the difference in 2030 GDP at less than one percent.

"I am pleased that the Energy Information Administration has confirmed what Senator Lieberman and I firmly believe: Americans can make significant reductions in our greenhouse gas emissions in a manner that does not harm the economy," said Warner. "Today's release of this latest analysis will only serve to validate our interest in moving a bill through the U.S. Senate as soon as possible."

EIA found that the Lieberman-Warner program would expand wind and solar energy use in the US and cause carbon capture and storage technology for coal-fired electricity to come online by 2015. As a result, EIA found, the Lieberman-Warner bill would not cause electric power companies to increase their use of high-cost natural gas.

EIA also confirmed the EPA finding that increases in US electricity prices would materialize slowly and gradually over time. EIA found that electricity rates would be only 5% higher in 2020 and 11% higher in 2030.

The Senate Environment and Public Works Committee voted to report the Lieberman-Warner Climate Security Act favorably to the full Senate last December. Majority Leader Harry Reid (D-NV) announced recently that the Senate will begin debating the measure in early June.