Global Climate Change
The fundamental question with global warming is no longer whether Congress should act, but instead how soon and how best does Congress act. There is a mountain of scientific data and evidence demonstrating climate change, and we must act responsibly by taking the necessary steps to curb global warming where it is possible.
Climate change represents a tangible threat to the communities we represent and to the United States as a whole, and to that end I encourage and support the efforts to address this critical issue. I support science-based legislation that imposes an economy-wide cap-and-trade program to reduce domestic greenhouse gas emissions by 80% below 1990 levels by 2050. The United States must be a leader in this global issue.
We must be faithful and wise stewards because at this point we all know we have a problem that could truly affect the way we live our daily lives. It is my hope that Congress will soon put forward some carefully constructed and sound policy that addresses the issue of global warming.
As the legislation is crafted, there are some specific concerns I want to see addressed in the following areas:
Consumer Protection
Low- and middle-income households spend a greater share of their budget on energy costs than higher income households. A cap-and-trade system will undoubtedly raise the cost of energy for all households. To prevent this policy from being unfairly burdensome on these households, I recommend:
- A climate rebate equal to the loss in purchasing power should be extended to the lowest quintile, the second quintile, and partially extended to the third quintile. For households that file no tax return, the rebate will be administered through the Electronic Benefit Transfer (EBT) system. For all others, the rebate should be extended through a higher Earned Income Tax Credit (EITC). These rebates should be funded annually using revenue generated through auction of 35% of emissions credits. It should be scaled to family size, and increased over the life of the program.
- Further investments into the Low Income Home Energy Assistance Program (LIHEAP) and the Weatherization Assistance Program using 1% of the total value of auctioned emissions credits.
Leakage Protection
Many manufacturing jobs in this country produce goods that compete in global markets. Under a domestic cap-and-trade program, these industries will face undue pressure from increased costs due to direct regulation of their emission as well as higher energy costs. If left unprotected, these industries will be forced to close or move operations to countries without such emissions regulations, producing the leakage of American jobs and emissions to foreign countries. To protect the jobs of workers in the energy-intensive trade-exposed industries, the I recommend:
- Free allocation of emissions credits to qualifying industries compensating for direct allowance costs as well as indirect costs brought about by higher energy costs. These allocations should be based upon actual output as opposed to historic output.
- Further, the EPA should incentivize efficiency improvements using the average energy efficiency of a sector or subsector as a benchmark.
- The free allocation of emissions credits should be phased out with the enactment of an international climate agreement.
International Adaptation
Regardless of our success in curbing greenhouse gas emissions, the global temperatures will continue to rise in the coming decades. The result includes rising sea levels, increased tropical storm activity, more precipitation in wetter areas and less in drier areas, and increased spread and range of tropical diseases. This will affect communities domestically and abroad, and low-income communities will be at the greatest risk. Providing appropriate adaptation measures for these eventualities is imperative in this legislation to insure regular and predictable funding. I recommend that funds equal to 5% of the emissions credit revenue be reserved for:
- Ecosystem-based adaptation both domestically and internationally, investing in conservation techniques to preserve wetlands, tropical forestland and critical ecosystems. Thriving ecosystems produce healthy communities, which can sustainably manage their households.
- Agricultural adaptation for areas experiencing shifting weather patterns. Subsistence farmers will need aid to manage the temperature change and its effect on their growing season.
- Medical adaptation is needed to prepare and prevent the spread of disease. As temperature rises, tropical-borne diseases such as malaria will proliferate in previously unaffected areas. Preventing this through vaccinations, habitat manipulation, and other options should be a priority.
Investment in the Green Economy
Fundamentally, a cap-and-trade program will revolutionize our economy and energy infrastructure, forcing us to become more innovative and efficient. The growing “Green Economy” presents numerous opportunities for all Americans to be engaged, involved and employed in this revolution. It is critical that we invest in accelerating the growth of green industries through public/private partnerships, investments in education and tax incentives to businesses that promote green industries. I recommend the following:
- Development of Green Energy Centers of Excellence at Historically Black Colleges and Universities (HBCU’s) to research and develop new green technologies as well as train implementers in the deployment of green innovation. HBCU’s maintain unique relationships with communities of color, and we should implement their ability to educate these communities on the opportunities in green industries and the techniques needed to succeed into a larger energy strategy. Funding for this effort should be generated annually from auction revenue.
- Tax incentives to minority-owned businesses that create green jobs are critical to encouraging growth of this emerging sector.
