Cap and Dividend

  • The CLEAR act was designed to avoid a carbon trading platform susceptible to market manipulation and price volatility. (Photo courtesy of FutureAtlas CC-2.0)

A new study looks at how big of a check you might get under a bi-partisan climate change bill. The CLEAR Act (Carbon Limits and Energy for America’s Renewal) is better known around Washington as the cap-and-dividend plan. Lester Graham reports:

Transcript

A new study looks at how big of a check you might get under a bi-partisan climate change bill. The CLEAR Act (Carbon Limits and Energy for America’s Renewal) is better known around Washington as the cap-and-dividend plan. Lester Graham reports…

This plan would tax fossil fuels at the source, whether a tanker or foreign oil coming into port or coal coming out of a mine. 25-percent of that money would be used to invest in cleaner alternative energies. The other 75-percent… would be paid at a flat rate to each person in the nation in a monthly check to offset higher energy prices.

James Boyce at the University of Massachusetts-Amherst is one of the authors of the new report. He says for most people that monthly check will more than cover the higher costs of fossil fuels.

“So for the typical family, they’ll be paying more in higher prices on the one hand and they’ll be getting back a dividend check on the other hand.”

Boyce says since people in the highest income brackets tend to use a lot more energy, they’ll actually come up a little short on the deal.

This cap-and-dividend plan also has fewer loopholes to be exploited by special interests.

For The Environment Report, I’m Lester Graham.

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No Tax Credit for Biomass

  • Biomass power is produced from organic waste such as wood chips or grass. (Photo courtesy of the National Renewable Energy Laboratory)

When Congress approved production
tax credits for renewable energy,
not every industry got the same
treatment. Lester Graham reports
biomass power is not getting the
subsidies that other alternative
energy sources get:

Transcript

When Congress approved production
tax credits for renewable energy,
not every industry got the same
treatment. Lester Graham reports
biomass power is not getting the
subsidies that other alternative
energy sources get:

Biomass power – produced from organic waste such as wood chips, grass or stuff that would otherwise just be thrown away – got half the tax credit that wind and solar did. And, instead of the tax credit lasting ten years like the other renewable energy sectors, biomass power got five years.

Bob Cleaves is the president of the Biomass Power Association. He says that tax credit for biomass is now gone.

“And our industry, frankly, is in crisis at the moment because Congress has let expire existing production tax credits we were only given five years for and if those are not brought back to life, then I’m afraid we’re not going to be growing the baseline, we’re going to be losing the baseline.”

Cleaves says without the tax credit, some states will be at a disadvantage in meeting the federal government’s requirments for more electricity to come from renewable energy.

For The Environment Report, I’m Lester Graham.

Related Links