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Legislation
H.R. 2454, The American Clean Energy and Security Act of 2009, introduced by Representatives Waxman (D-CA) and Markey (D-MA) passed the U.S. House of Representatives in late June. The more than 1,400 page piece of legislation now moves to the Senate where hearings have already begun on the issue of energy and climate change.
The Waxman-Markey legislation went through the House in a rather unique manner. Only one committee, the Energy and Commerce Committee, out of nine with jurisdiction actually marked up the legislation. All other committees waived their jurisdiction and sent the bill to the House floor. Tuesday evening the week the bill passed an agreement was struck with House Agriculture Committee Chairman Collin Peterson (D-MN) that was beneficial for agriculture. The language of that legislation was available early Thursday morning. The Peterson language was wrapped into a larger amendment (referred to as the manager's amendment). The language of the 300 plus page manager's amendment became available early Friday morning. The vote took place just after 7:00 PM Friday evening. Michigan's Congressional delegation voted party line (all of the Democrats voted "Yes" and the Republicans voted "No").
Cost analysis of the legislation varied greatly. American Farm Bureau economists stated that at minimum it will increase cost by 5%. The non-partisan Congressional Budget Office reported in May that the cost would average $1,600 per household but revised that number to $175 per household after some of the legislation's provisions changed. The USDA did not report an economic impact of the legislation. Agriculture Secretary Vilsack testified that they were waiting on other agencies to complete analysis before USDA did one.
Overall Farm Bureau opposed the legislation, but supported the Peterson amendment.
The Peterson agreement was part of the Manager's amendment that was adopted as part of the legislation. The amendment contains the following provisions for agriculture:
- Expanded definition of renewable biomass
- There are several different definitions of biomass but the amendment clarifies what can be considered as biomass for the purposes of this legislation.
- Explicitly states that agricultural can participate in the offset program
- Offset projects include altered tillage practices; forestation; livestock emissions reductions programs (including diet); methane digesters; and a number of conservation projects.
- States that the Secretary of Agriculture is in charge of agricultural offset program.
- Allows projects that date back to January of 2001 to be included in the offset program.
- Delays for five years EPA's decision to use indirect landuse when calculating the lifecycle of biofuels.
Farm Bureau remains concerned about several provisions including:
- International trade concerns
- The lack of comprehensive energy solutions (nuclear is not included as part of the solution)
- The structure of the cap and trade system
- USDA analysis of the legislation and the impacts on agriculture.
Farm Bureau is opposed to H.R. 2454.
The legislation contains four titles:
Title 1: Clean Energy
The title increases renewable fuels used to generate electricity establishes by establishing a Renewable Electricity Standard of 20% by 2020 (20% of electrical generation must come from renewable fuels); Carbon Capture and Sequestration; Clean Transportation; and Smart Grid issues.
Title 2: Energy Efficiency
This title increases energy efficiency in buildings (building codes required to increase energy efficiency standards by 50% by 2016) ; increases lighting and appliance efficiency; transportation efficiency (non-road vehicle and motor emission standards), utility energy efficiency, and industrial energy efficiency.
Title 3: Reducing Global Warming (Safe Climate Act)
The title would provide for the reduction of greenhouse gases (GHG) by adding a new Title VII to the Clean Air Act. It would implement greenhouse gas reductions through a cap and trade program. To achieve reductions it would cap emissions and gradually reduce the emissions cap. Businesses unable to meet the cap would have the opportunity to purchase offset credits from entities that are able to sequester carbon (reduce GHG). Agriculture is not specifically included in the offset program.
Title 4: Transitioning to a Clean Energy Economy
This title provides rebates to industries that suffer losses as a result of entities moving to other countries as a result of this legislation, or that suffer losses resulting from imports from other countries that do not have the same or similar carbon costs. This title primarily applies to manufacturing and industrial sectors.
Details of the legislation can be found at http://energycommerce.house.gov/ or directly at http://www.eenews.net/public/25/11457/features/documents/2009/06/23/document_daily_03.pdf
Renewable Fuel Standard (RFS)
The 2007 Energy legislation included an RFS. The RFS is a biofuels mandate broken down into the following categories.
The current RFS includes several schedules for biofuels: conventional, advanced, cellulosic and alternative diesel.
- The conventional biofuels RFS schedule begins at 9 billion gallons in 2008, increases to 15 billion gallons in 2015 and includes only corn starch-based ethanol.
- The advanced biofuels schedule begins at 0.6 billion gallons in 2009 increasing to 21 billion gallons in 2022. The advanced biofuels schedule is further divided between cellulose and biodiesel. Any other renewable fuels will fall into the advanced schedule.
- The cellulosic biofuels schedule begins at 0.1 billion gallons in 2010 and increases to 16 billion gallons in 2022.
- The alternative diesel schedule begins at 0.5 billion gallons in 2009, and concludes at 3 billion in 2022.
