Statement of Emily Figdor
U.S. PIRG Federal Global Warming Program Director
Time
is running out to stop the worst effects of global warming, and only
bold and decisive action will protect our environment, economy, and
future generations of Americans. While this bill is an important
starting point for action, it needs to be strengthened to meet the
challenge of global warming.
We applaud Senators Lieberman and
Warner for introducing this bill and for the tireless efforts of
Senators Sanders and Lautenberg to improve it – but more needs to be
done.
As currently crafted, the bill has these three main
problems. These problems, which are outlined below, would be addressed
by the amendments offered today by Senator Sanders.
The bill
must achieve faster and deeper cuts in pollution, consistent with what
the science demands. According to a preliminary analysis by the World
Resources Institute, the pollution caps in the bill would reduce total
U.S. global warming emissions by 13 percent below 2005 levels by 2020
and by 45 percent below 2005 levels by 2050. These reduction levels
are far short of the reductions the science indicates are needed (at
least 80 percent reductions by 2050) to prevent the worst effects of
global warming. One change to the bill secured by Senator Lautenberg –
adding emissions from burning natural gas – will achieve additional
mandatory reductions, but that specific requirement has not yet been
spelled out. Additional reductions may be achieved through other
policies in the bill, but those reductions are difficult to quantify
and are not guaranteed.
Flexibility mechanisms in the bill
must be tightened to prevent undermining the goals of the bill. The
bill currently allows companies to exceed their pollution limits by
paying sources not covered by the program to reduce emissions.
Ensuring that a ton of pollution from such “offsets” equals a ton of
real reductions is a major challenge. In addition, offsets delay the
transition to cleaner technology that will be needed to achieve deep
future cuts in emissions. Under the bill, a company could
theoretically meet nearly its entire 2020 pollution-reduction
requirement through offsets.
Polluters must be required to
pay for every ton of pollution they put into the atmosphere. The bill
gives hundreds of billions of dollars in the form of emission
allowances to polluters for free, which will create windfall profits,
as have occurred in Europe, and take vital resources away from easing
America’s transition to a clean energy future. These profits come
directly from the pocketbooks of consumers. Under this bill, just
under half (49 percent) of the pollution permits would initially be
given to polluters for free, and it will take 25 years (until 2036)
before we stop handing cash to polluters. More than 100 organizations
and individuals, including former Labor Secretary Robert Reich, the
Consumer Federation of America, MoveOn.org, OXFAM, and U.S. PIRG,
recently released a statement calling for all allowances to be
auctioned in a cap-and-trade system.
We look forward to working with the full committee to strengthen the bill.
