Waxman-Markey Cap and Trade Will Pay For Itself, CBO Finds
The Waxman-Markey Climate Bill uses Cap and Trade to get our current 6 billion tons of CO2 a year down to just over 5 billion tons a year by 2020 (20% by 2020) and continuing down further by 2050.
The Congressional Budget Office has estimated that the auction proceeds of the current Cap and Trade bill would increase Federal revenues by about $846 billion by 2019.
That would more than fund the $821 billion in renewable energy spending that it will take (per the CBO) to reduce the national carbon footprint by almost a billion tons a year on deadline, and would leave $25 billion in the bank for additional renewable energy projects.
This revenue would fund programs that reduce carbon emissions and that cut the cost to individuals and businesses. Some examples over the jump:
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- Provide energy tax credits or energy rebates to small business and low and middle income families to offset the impact of higher energy-related prices.
- Require utilities to buy an increasing percentage of energy from renewable power and provide assistance like loan guarantees for clean energy projects.
- Fund research and development of technologies related to carbon capture and sequestration.
- Fund $25 billion in DOE loans to automobile manufacturers and component suppliers under the current Advanced Technology Vehicle Manufacturing Loan Program.
- Establish a Clean Energy Deployment Administration (CEDA) within the Department of Energy (DOE), which would be authorized to provide direct loans, loan guarantees, and letters of credit for clean energy projects.
- Authorize the Department of Transportation to provide individuals with vouchers to acquire new vehicles that achieve greater fuel efficiency than the existing qualifying vehicles owned by the individuals.
- Authorize appropriations for various programs under EPA, DOE, and other agencies.
According to the Congressional Budget Office, Waxman-Markey would cover about 72% of US emissions initially and by 2020 that would be up to 86 percent. The initial auction reserve price for carbon would be $10 a ton; stepping up to $15 by 2020 (and on up to $64 a ton by 2050.)
Cap and trade offers maximum flexibility, clear and feasible goals, and a predictable time-line:
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