US GHG bill clears big hurdle; foes vow fight

New York, 6 December: For the first time, US climate legislation has passed out of committee and heads for a vote by the full Senate, where opponents promise “an enormous floor fight”.

On 5 December, the Senate Environment & Public Works Committee passed the Climate Security Act (S.2191), which would reduce GHGs in the power, gas, industrial and upstream oil sectors. The bill would cap emissions at 2005 levels in 2012, then reduce them 20% by 2020 and 70% by 2050. The measure would allow emitters to trade allowances to emit carbon dioxide, methane, sulphur hexafluoride, hydrofluorocarbons and perfluorocarbons. It would allocate some free allowances to industry at first, but gradually shift to auctioning all allowances.

No previous climate bill has ever passed the committee, which must review environmental legislation. However, the balance changed when Democrats won control of the Senate in 2006 elections.

Committee chairwoman Barbara Boxer of California called the vote “a historic moment for our country”. But the victory was narrow at 11-8, with bill co-sponsor John Warner the only Republican voting in favour. The committee’s ranking Republican, James Inhofe of Oklahoma, promised “an enormous floor fight”, saying: “This bill will strike a devastating blow to American families, American jobs and the American way of life.”

Inhofe chastised Democrats for rejecting an amendment to promote nuclear plant construction through tax credits and loan guarantees. “You simply cannot ignore the world's largest source of emission-free energy if you plan to cut carbon emissions and still keep the lights on,” he stated. Republicans also criticised the lack of incentives for producing natural gas, which will be needed in greater quantities if power plants switch from coal.

Environmental groups generally praised the development, though most seek stronger restrictions and a more accelerated schedule. “Finally, there’s a path to real action on global warming on the floor of the Senate,” said Environmental Defense, though the NGO will seek more aggressive reductions in the final bill.

The Natural Resources Defense Council said the news “will reverberate around the world to Bali, where delegates from 190 countries eagerly await signs that the United States will return to a position of leadership regarding climate change”.

But Friends of the Earth blasted the bill because “it rewards pollution with up to $900 billion in special interest giveaways”, in the early allocation of free allowances.

The House of Representatives is expected to pursue a GHG bill in early 2008. John Dingell, chairman of the Energy & Commerce Committee has called for 60-80% reductions by 2050.