Cap & Trade

Dear Mr. X:

Thank you for sharing your thoughts about the American Clean Energy Jobs and American Power Act (S. 1733). I understand your concerns about the impact such legislation will have on Americans. At the same time, I believe that global warming is real and needs to be addressed. The good news is that S. 1733 can be a cost effective way to address this threat and help us develop a clean and sustainable economy.

Senators John Kerry (D-MA) and Barbara Boxer (D-CA) introduced S. 1733 on September 30, 2009. In addition to addressing greenhouse gases and energy use, legislators worked hard to address many of the concerns that you raised, including costs to consumers. The bill includes provisions to provide reimbursements to households, particularly low-income ones, to offset any higher energy costs. As a result, the Congressional Budget Office estimates that the legislation will cost each household less than 50 cents per day in 2020. On October 27, the Consumers Union, AARP, the National Consumer Law Center and Public Citizen all wrote to Chairman Boxer saying, "S.1733 includes several significant consumer protection provisions advocated by our organizations."

Chairman Boxer went through great efforts to make the legislative process of this bill as open and as transparent as possible. She held numerous hearings and heard from dozens of witnesses. In addition to working with all members of the committee for months to incorporate their concerns into the bill, she made the legislation available to all senators 10 days before the start of the legislative mark up.

I believe that this bill will help America rebuild its economy by providing incentives for businesses to invest, create new, good paying jobs, and save Americans billions of dollars in the long run. Investments in clean energy will generate approximately 3 times as many jobs as the equivalent amount spent on carbon-based fuel.

A recent report released by the Union of Concerned Scientists found that if emissions are reduced by 56 percent by 2030, the resulting savings on energy bills would produce net annual savings for households, vehicle owners, businesses, and industries of $255 billion. The Political Economy Research Institute estimates that the passage of a climate and energy bill would produce 1.7 million new jobs - 26,605 in Maryland alone. These jobs will be permanent, good paying, and will help rebuild our manufacturing sector.

Many of America's leading companies support this move to a new energy economy. The United States Climate Action Partnership is an alliance of major businesses that have come together in support of strong national legislation to require significant reductions of greenhouse gas emissions. This partnership includes major companies such as General Electric, Ford Motor Company, Shell, John Deere, DuPont, and PepsiCo.

If left unchecked, the impacts of global warming - increased hurricane damage, real estate losses, and energy and water expenses - could cost our economy an estimated $1.9 trillion annually by the end of the century. The stakes are particularly high for Maryland, where scientists predict that warming will cause sea level to rise by as many as three feet before the century's end. Warmer seas will produce more severe tropical storms and hurricanes-causing damage to towns along the Chesapeake Bay and more floods throughout the state.

A central element of S. 1733 is a cap and trade program to control harmful carbon dioxide emissions and lower costs of the overall bill. Unlike a carbon tax, the cap and trade model provides businesses and corporations with the most flexibility, enabling market-driven forces to minimize overall costs and achieve maximum efficiency in reducing emissions. This model has been successful in curbing other pollutants in the past.

The Environmental Protection Agency under President George W. Bush estimated the benefit-to-cost ratio of the sulfur dioxide cap-and-trade program at 40-1. Praised by businesses and environmental groups alike, cap-and-trade programs offer a pragmatic approach that meets both our economic and environmental goals.

Again, thank you for sharing your concerns with me. Please do not hesitate to contact me about this or any other issue of concern to you.

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