Ag Committee Approves Bipartisan Legislation to Reauthorize and Improve the Commodity Futures Trading Commission
The House Agriculture Committee approved H.R. 4413, the Customer Protection and End-User Relief Act, by voice vote.
The latest update on the costs of the House cap and trade bill (H.R. 2454) comes from the Environmental Protection Agency (EPA). In response to a request by U.S. Senator Russ Feingold (D-WI), EPA has released a new analysis that indicates Midwestern power companies would lose under H.R. 2454. This new analysis, which was highlighted in a news report from Climate Wire, suggests that a cap and trade regime unfairly favors coastal states over Midwestern states because of the Midwest's heavy reliance on coal plants. Ultimately, it means that electricity rates in these states will skyrocket under cap and trade.
Consider the following:
In the news report, a representative from Alliant Energy, a Wisconsin-based utility, is quoted as saying "the EPA document just confirms the formula will disadvantage Midwest states for decades to come while the coast states will hit a 'federal jackpot' every year over the life of the new program."
The report is timely as the U.S. Senate prepares to debate this issue. Last month, Sen. Barbara Boxer (D-CA) and Sen. John Kerry (D-MA) released a Senate version of cap and trade legislation and there are few details regarding allocation of carbon allowances. The Senate Environment and Public Works Committee is expected to hold hearings on the bill later this month with a markup planned for November.