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Cap and Dividend

The best hope for climate change legislation?  Thinking CLEARly.

(June 2010)  Recent disasters such as the oil spill in the Gulf of Mexico and the deaths of coal miners in West Virginia have highlighted the urgency of passing effective climate legislation that moves America away from dependence on fossil fuels and reduces greenhouse gas emissions. Amidst these disasters, Sen. John Kerry (D-MA) and Sen. Joseph Lieberman (I-CT) are circulating draft wording for a new “cap and trade” bill called the American Power Act (APA). Despite their efforts, comprehensive climate and energy legislation is still stalled in the U.S. Senate.  The primary reason for the lack of progress is that much of the focus has been devoted to complicated “cap and trade” proposals such as the APA and a similar bill that narrowly passed the House of Representatives last year. Both proposals are more than 1,000 pages long, and are criticized for relying too much on financial markets and offering too many giveaways to polluting industries.

Congress’ Summer recess and the upcoming mid-term elections leave the Senate with only a small window of time to move forward with climate legislation this year. But passing effective climate legislation in the Senate this year requires starting with the right framework.

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MEIC executive director Jim Jensen with WA Sen. Maria Cantwell, sponsor of the CLEAR Act now before the Senate.


The most promising proposal is the CLEAR (Carbon Limits and Energy for American Renewal) Act sponsored by Sen. Maria Cantwell (D-WA) and Sen. Susan Collins (R-ME). The 39-page bill involves a “cap and dividend” approach and has gained positive attention from both Democrats and Republicans. The bipartisan CLEAR Act is fairer, simpler, and much easier to understand than the APA and would be much more effective at controlling carbon emissions. Therefore, it should have a better chance of passing Congress. As such, it should be the foundation of any Senate climate bill. 

Clear Act mapWhat is the Economic Impact of CLEAR in Montana?

(Click on the map for a graph that shows how all Montanans with low-middle incomes will get more money in dividends than they pay in higher energy prices as a result of CLEAR’s “cap and dividend” approach. This means that 80% of Montanans will come out ahead as a result of this climate policy.)

For more information about the CLEAR Act go to www.supportclearact.com.

The chart below (click for larger version) is a summary comparison of the CLEAR Act and the American Power Act (APA).

CLEAR Act chart icon

 

 

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