Thursday, July 2, 2009

Cap & Trade

Clean energy legislation (American Clean Energy and Security Act of 2009) passed the US House of Representatives, but not before the House Agriculture Committee ensured that farmers, ranchers and forestland owners would have the ability to participate in a market-based carbon offset program which would be an income earning activity. Legislation that was passed in the house states that the agriculture and forestry sectors are exempt from the bill's greenhouse emission reduction requirements - in other words, they're not subject to the greenhouse gas emissions "cap". "Within the USDA, an agricultural and forestry offset program would work with farmers, ranchers and forestland owners to design and implement plans that reduce or avoid greenhouse gas emissions and sequester carbon on their operations. They can then sell the credits to utilities, refiners, or other firms subject to limitations on greenhouse gas emissions."Chairman Peterson states: "Farmers, ranchers, and forestland owners have been participating in conservation and carbon sequestration programs for many years, working to reduce greenhouse gas emissions, increase energy efficiency, and support a thriving renewable energy industry. This legislation recognizes those efforts and encourages these important activities."

How NC delegation voted:
YES: Butterfield, Miller, Watt, Shuler, Price, Etheridge
NO: Jones, Foxx, McIntyre, Coble, McHenry, Kissell, Myrick

The NC State Grange finds comfort in the fact that the House Agriculture Committee worked extremely hard to advocate on behalf of farmers, ranchers and forestland owners. It is important that there are folks doing their best to consider legislation that positively affects farmers, ranchers and forestland owners. However, the State Grange has opposed H.R. 2454, American Clean Energy and Security Act of 2009 based on the following tenets.
  • The cost of compliance to a "cap and trade" policy will ultimately be passed onto the consumer / A typical family's energy bill would rise
  • Poor and middle income earners spend a larger percentage of their paycheck on fuel, groceries and home heating
  • Rural Americans spend more fuel as a percentage of their income than those living in urban areas because the distance that must be traveled to work and shop
  • 2009 Council of Economic Advisers' Report of the President (see p. 27 of the report): US action alone will not reverse global emission growth or stabilize global atmospheric greenhouse concentrations
  • China & India = home to most polluted cities in the world and they have not committed to reduce emissions
  • American commitment to reduction will place us at a competitive disadvantage

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