Global warming is the increase in average temperature of the Earth’s surface air. It is a major concern of the Senate this coming year and new plans are in place to manage it. There is a new proposal on the table to curb global warming and it promises to return about ,100 annually to American consumers. It comes as a bill labeled “cap and dividend.” It would require natural gas, oil, and coal companies to buy monthly permits to sell their goods. Seventy-five percent of the money would be returned to the public every month in the form of a dividend check and the remainder of the money would go towards renewable energy studies and conservation programs.
Supporters of the new bill
The bill’s supporters believe raising the costs of fossil fuels will make renewable energy more competitive. Senator Maria Cantwell said, “The act provides businesses and investors with a simple, predictable mechanism that will open the way to clean energy expansion while achieving America’s goals of reducing carbon emissions.” It is hoped that the cap-and-dividend move manages to spur a greater nationwide trend of moving to energy-efficient ways of life. Cantwell added, “If the government is behind major changes and so are fuel companies, many consumers will follow suit with smaller, everyday changes they can make.”
Those who don’t like it
Despite its supporters, there are still some who aren’t as partial to the new “cap-and-dividend” bill. Critics are worried that the new bill could potentially thwart innovation. By restricting Wall Street’s trading of carbon credit, they believe new technologies won’t be seen as potential for investment. They are citing the lack of investment capital from communities as a major disadvantage.
The plan for Cap and Trade
Heretofore, the most popular idea had been that of cap and trade. Cap and trade plans are of annual permits that must be purchased by power producers and businesses that emit carbon from the government. The number of permits would slowly be decreased in order to get large polluters to behave better. The industries could then either pay to clean up their facilities, or trade permits amongst other facilities. A preliminary version of the cap-and-trade plan has already passed the House and has now moved on to the Senate floor.
What the numbers mean
Senator Susan Collins is a sponsor of the cap-and-dividend bill. She purports consumers will get about ,100 in an annual rebate check, but the higher costs of gas or other fuel costs would only put them 0 ahead as an estimate. Costs are obviously going to fluctuate, but they estimate that the plan will save each household about 5 a year. Collins said, “Climate change legislation must protect consumers and industries that could be hit with higher energy prices.”
So what’s next?
There are a lot of hurdles before it becomes law. It isn’t going to be easy, either. Even the Senate Democrats are having a hard time finding support. Many believe it is too costly for voters. Only time will tell if the bill gains the needed momentum to be passed, but even if it isn’t legislators are still focusing on aiding the world’s global warming problem.
