Cheap at Twice the Price: EPA’s New Analysis of House Climate Bill
Posted June 23, 2009 in Solving Global Warming
With the American Clean Energy and Security Act (ACES) poised for an historic vote in the House of Representatives on Friday, the Environmental Protection Agency released a new analysis of the costs of implementing the legislation. This analysis finds that the bill would be even more affordable than indicated by EPA's preliminary analysis released in April. Highlights include:
- The overall cost of implementing the bill will average $80-$111 per household per year--less than $10 per month. EPA's preliminary analysis had estimated $98-$140 per household per year.
- Allowance prices will be only $13 per ton in 2015, rising to $16 per ton in 2020. EPA's preliminary analysis had estimated $13-17 in 2015 and $17-22 in 2020.
- A 10 year delay in the availability of international offsets would only increase allowance prices by 3 percent. This is an important new finding because EPA's preliminary analysis had been criticized as overly optimistic about the prospects for quickly scaling up the offsets program.
- Household electricity and natural gas expenditures are reduced by 7% in 2020 due to the energy efficiency and consumer protection provisions of the legislation. This is consistent with the conclusion of NRDC's analysis which shows that the legislation will reduce consumer's electricity bills in most states.
EPA's analysis, along with the CBO estimates released on Monday, totally discredit opposition claims about the high cost of this critical legislation. And neither EPA nor CBO attempt to account for the economic benefits of reduced environmental damage stemming from the pollution reduction achieved by ACES and the international leadership it would enable for President Obama.
This is a bargain that we truly can't afford to pass up.
updated 6/24 at 11:34 with added fourth bullet and link
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