On July 17, Jonathan Black, staff to Senate Energy and Natural Resources Committee Chairman Bingaman and Tom Dower, staff to Sen. Specter, discussed with utility stakeholders the senators' "Low Carbon Economy Act of 2007." The Bingaman-Specter bill has the support of some industry and labor organizations, including American Electric Power Corporation, one of the nation's largest coal-fired electric utilities, as well as the AFL-CIO, International Brotherhood of Electric Workers and the United Mine Workers of America.
The bill proposes an economy-wide, market-based plan that, starting in 2012, would require that CO2 emissions be reduced to 2006 levels by 2020. Following that, the bill hopes to achieve reductions to 1990 emission levels by 2030 and at least 60% below current levels by 2050. These reductions are dependent on technological and scientific advancement and international cooperation, staff said.
The Bingaman-Specter bill includes a provision dealing with international cooperation, including five-year reviews to see how other countries are handling the issue. Another unique feature of the Bingaman-Specter bill is the so-called "safety valve" provision, which allows entities to purchase climate change credits at a relatively low cost in early years, to allow time for carbon sequestration technologies to be developed. This feature was recommended by economists in Senate hearings earlier this year as a means of addressing price volatility concerns and may be key to attracting the votes of moderate Republicans.
The environmental community, however, is strongly opposed to the "safety valve," as is EPW Committee Chairman Boxer.
Hearings on the Bingaman-Specter bill are expected in the Fall.