June 3, 2008

The Climate Security Act Will Spur Innovation and Create Jobs

The Climate Security Act will help America transition to a green economy by spurring innovation in renewable energy and energy efficiency technology. This growing economic sector already sustains millions of good-paying jobs here in America, and this legislation will create millions more. Senate Republicans should join with Democrats to reduce our emissions and lessen our dependence on oil while creating jobs and strengthening our economy.

Investment in renewable energy creates jobs and grows America's economy:

Investments in Renewable Energy Will Stimulate the Economy By Creating Jobs. According to a landmark 2004 study, a $300 billion investment in America’s economic and energy future over 10 years would produce 3.3 million jobs and a $1.43 trillion gain in GDP. Authors of the study from the Apollo Alliance found that 932,000 of the jobs would be in energy diversity, 900,000 would be in industries of the future, such as hybrid cars, energy efficient appliances. The report estimated 827,000 would be created in high performance buildings and 679,000 jobs would be created in infrastructure investment. [Apollo Alliance, “New Energy for America,” 2004]

Study Found Investing $30 Billion Per Year Over 10 Years Would Create 3.3 Million New Jobs and Boost GDP by $1.4 Trillion. According to the Apollo Alliance, a labor-environmental partnership, investing $30 billion per year over 10 years would create 3.3 million jobs and boost the nation's GDP by $1.4 trillion. [Apollo Alliance, “New Energy for America,” 1/04]

In 2006, Renewable Energy Sector Created 8.5 Million Jobs. In 2006, the renewable energy and energy efficiency industries generated 8.5 million jobs and nearly $970 billion revenue in America. [National Wildlife Federation: Recharging America’s Economy, May 2008]

The Climate Security Act will spur innovation, transition America to a green economy and create jobs:

AFL-CIO Executive Director Testified that the Climate Security Act Can Serve Dual Purpose of Environmental Protection and Economic Development. “We believe that S. 2191 can serve a dual purpose: environmental protection and economic development. The legislation needs to make explicit the implicit economic development goals embodied in the bill's investment strategy and its stated purpose of ‘preserving robust growth.’ It is in the national interest to assure that the investment dollars generated by this legislation are reinvested in our domestic economy. We urge the Committee to adopt language to direct the Climate Change Credit Corporation that ‘the financial resources of the corporation shall be dedicated to domestic investments.’ In addition, we suggest that ‘domestic economic development' be identified as a finding of Congress and that domestic investments in technology development, production and construction be identified as a purpose of the legislation.” [Testimony of Robert C. Baugh, Executive Director AFL-CIO Industrial Union Council Before the Environment and Public Works Committee of the U.S. Senate, 11/13/07]

The Union of Concerned Scientists Believe Climate Security Act Will Allow the Economy to Grow and Create New Domestic Jobs While Reducing Emissions. “More than 1,700 scientists and economists released [a] statement last week through the Union of Concerned Scientists, which urges policymakers to require immediate and deep reductions in the emissions that cause global warming… We stress that these reductions are absolutely critical if we are to have any real hope of limiting the worst consequences of climate change. And these cuts can be made in an economically sound manner. Smart strategies, like those in the Climate Security Act, will allow the economy to grow and generate new domestic jobs, while protecting us from climate change. There are human and social and economic costs associated with increases in severe weather events, drought in agricultural regions, wildfires, sea level rises, as well as the damage to irreplaceable natural landscapes and the communities that depend on them.” [Statement of Catherine Norman, Economist at the Johns Hopkins University, on Behalf of the Union of Concerned Scientists, 06/02/08]

The Climate Security Act Provides Training and Assistance to Workers Displaced By Global Warming Mandates. The bill provides a total of $190 billion through 2050 to fund the Energy Efficiency and Renewable Energy Worker Training Program, and a new Climate Change Worker Assistance Program. [Summary of Substitute to S. 2191, 5/21/08]

NRDC Estimates Climate Security Act Will Provide $127 Billion in Tax Relief and Worker Training to Protect Consumers and Workers in First 10 Years. According to the Natural Resources Defense Council, during its first ten years of implementation, the Climate Security Act will provide $127 billion in tax relief, worker training, and other programs that support and protect American consumers and workers. [Natural Resource Defense Council, 5/08]

NRDC Estimates Climate Security Act Will Invest $222 Billion to Promote Energy Efficiency in its First 10 Years. According to the Natural Resources Defense Council, the Climate Security Act will provide $222 billion in investments and programs that promote energy efficiency in America’s businesses and industry in its first ten years of implementation. [Natural Resource Defense Council, 5/08]

The Climate Security Act will not seriously hurt our economy or raise costs for families and businesses:

Bush Administration Study Found Climate Security Act Would Have Minimal Negative Impact on Economic Growth. “The BAU (Business as Usual) or reference cases in the various models show that overall U.S. GDP doubles by 2030 and more than triples by 2050. Thus, decreases from future GDP are quite small compared to the overall economic growth over the time period considered. For example, in EIA’s analysis, GDP grows 183% from 2005 to 2030 in the S. 2191 core (policy) scenario compared to 184% in the reference case. For context, this means that the economy would be less than 2 months behind BAU levels in 2030 with GHG caps.” [In Brief,  A Report from the Pew Center on Global Climate Change, 05/08]

NRDC Analysis Concluded Climate Security Act Would Not Cause Significant Increases in National Energy Costs and Overall Economic Impact Would Be Small.  “An analysis of the proposed Lieberman-Warner legislation prepared for the Natural Resources Defense Council (NRDC) shows that the global warming pollution reduction targets established by the bill can be achieved without a significant increase in the country’s total energy costs. The overall economic impact is small because increased investment in new, more efficient appliances and equipment and low-carbon technologies is offset by savings from decreased expenditures on fuel and electricity. The analysis also shows that there are opportunities in the major transition to new technologies needed to achieve these reductions.”  [Natural Resource Defense Council, 5/08]

The Bush Administration Itself Concedes the Climate Security Act Will Have a Nominal Impact on Gas Prices. According to the latest modeling from the Environmental Protection Agency, the Senate Global Warming bill could raise gas prices by 53 cents by 2030. [EPA Analysis of S.2191, 3/14/08]

• The Measure Provides Billions in Tax Relief For Consumers. The bill sets aside a nearly $800 billion tax relief fund through 2050, which will help consumers in need of assistance related to energy costs. The measure calls on the Senate Finance Committee to develop the details of the relief. [Summary of Substitute to S. 2191, 5/21/08]
• The Climate Security Act Provides Relief to Consumers Through Their Local Electric and Gas Utilities. The bill provides $911 billion through 2050 to consumers through local electricity and gas utilities (local distribution companies) to ensure that consumers are protected from increases in energy costs, and to promote low carbon energy, and energy efficiency. [Summary of Substitute to S. 2191, 5/21/08]
• Families Will Be Spending Hundreds Less on Fuel by 2020 Under the Climate Security Act. Analysis by the National Resources Defense Council found that annual household spending on gasoline and other vehicle fuel will be less than consumers spent in 2007, under the Senate Global Warming bill. The NRDC report found the average yearly household fuel bill in 2020 is likely to be up to $530 lower and in 2030 is likely to be $590 lower. The lower total fuel bill is primarily a result of higher fuel efficiency and greater use of alternative fuels that more than fully offset any higher fuel prices that would result from the law. [NRDC: Household Transportation Fuel Bills and the Climate Security Act Including Savings for 2020 and 2030, June 2008]

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