Clean Energy Jobs and American Power Act

While the nation grapples with wars overseas and health care reform at home, climate change legislation is steadily making its way through Congress. The House of Representatives already passed a climate package; the Senate Committee on Environment and Public Works passed their own legislation, dubbed the Clean Energy Jobs and American Power Act.

The legislation would create a cap and trade program targeted at greenhouse gas emissions, push forward carbon capture and storage research, and appropriate funds for a variety of climate and energy-related work at EPA, the Department of Energy, and other agencies. The Congressional Budget Office just completed a cost estimate of the bill to determine budget and deficit impacts. The estimate, worth reading in its entirety here, finds the bill would:

• Increase federal revenues by about $854 billion; and
• Increase direct spending by about $833 billion.

In total, those changes would reduce budget deficits (or increase future surpluses) by about $21 billion over the 2010-2019 period. (All estimated effects would be on-budget.) In years after 2019, direct spending would be less than the net revenues attributable to the legislation in each of the 10-year periods following 2019. Therefore, CBO estimates that enacting S. 1733 would not increase the deficit in any of the four 10-year periods following 2019.