Economy—Energy—Climate: Using the Linkages

The Basics Strong Economy Depends on Energy and Stable Climate Energy Policy that Ignores Climate Protection Will Fail Climate Policy that Ignores Energy Needs Will Fail

Exploiting Linkages Protecting the climate IS an economic growth strategy Protecting the climate IS an energy security strategy Smart energy policy IS a path to economic and climate security

Speedy Timeline House E&C Comm. by end of May Pass House by August recess Senate: multi-committee process with reports by July 4 recess Pass Senate in September Conference in October (November) Signature by COP 15

ACES WILL BOOST OUR ECONOMY According to NEMS-NRDC, ACES will drive an additional investment of $306 billion in low- or no-emissions electricity generation technologies between 2012 and 2030, which includes $103 billion redirected from conventional fossil-fuel generation. ACES will also drive $32 billion of additional investment to increase the efficiency of residential and commercial equipment. Clean energy investments create more jobs for Americans of all skill and education levels than comparable investments in fossil-fuel energy sources –The Political Economy Research Institute (PERI), and independent unit of the University of Massachusetts, found that clean energy investments  Create 3.2 times as many jobs as fossil fuel investments  Create 5.5 times as many jobs for workers with few educational credentials or work experience, and 75% of those jobs provide opportunities for advancement – Recent UC Berkeley analysis finds ACES would produce million additional jobs in

ACES IS AFFORDABLE INCREASE IN AVERAGE MEDIAN ANNUAL INCOME PER HOUSEHOLD FROM 2009 LEVELS AND AVERAGE ANNUAL COST PER HOUSEHOLD VS. BAU OVER Comparing EPA, EIA, and NEMS-NRDC results, the estimates for average annual household cost of ACES range from $52 to $92, which translates to $0.14 to $0.25 per household per day. Meanwhile, median annual income levels per household over under ACES are expected to be, on average, $4,700 to $5,500 higher than 2009 levels.

7 ACES WILL MAKE AMERICA MORE SECURE (1/2) CARBON DIOXIDE CAPTURED FROM ELECTRICITY GENERATION TECHNOLOGIES WITH CCS IN 2020 AND

ACES WILL MAKE AMERICA MORE SECURE (2/2) At today’s oil prices, the cumulative value of these reduced oil imports through 2050 will be more than $2 trillion, significantly boosting the benefit of ACES to the U.S. economy. DOMESTIC AND IMPORTED CRUDE OIL AND REFINED PRODUCTS CONSUMPTIION FROM 2010 TO 2050, IN MARKAL - 7 -

Some Important Climate Players Senate— –“3 B’s”: Boxer; Bingaman; Baucus –Other Committees: Ag; Banking; For. Relations; Appropriations –Others: Reid; Corker; McConnell; Lugar; Specter House— –Waxman; Markey; Pelosi; Barton; Shimkus

Some Important NEW Players Kerry-Graham-Lieberman effort Cantwell-Collins Murkowski

Architecture Issues Auction Investments v. Rebates Offsets Trading Limits Safety Valve Targets Clean Air Act and State Authority

THE PATH TO 60 VOTES Yes 31 Probably Yes 13 Fence Sitters 21 Sen. Warner, VA Sen. Whitehouse, RI Sen. McCaskill, MO TOTAL: Vote Count

Bipartisan Strategy THE PATH TO 60 VOTES TOTAL: 65 Democrats 31 Yes 11 Probably Yes 15 Fence Sitters 57 Republicans 2 Probably Yes 6 Fence Sitters 8

1 Dem, 1 Republican 1 or 2 Dems 1 Republican Fence Sitters THE PATH TO 60 VOTES

Issues in Play THE PATH TO 60 VOTES COST COMPETITIVENESS AGRICULTURE COAL OIL & NUCLEAR

COST Vote Count: 50 Direct utilities to use allowances for public benefit Protect the poor through a rebate program Implement energy efficiency measures to lower monthly electricity bills THE PATH TO 60 VOTES

COMPETITVENESS Vote Count: 54 Direct allowances to energy-intensive, trade-exposed manufacturers Provide assistance to make manufacturing more energy efficient Impose a boarder adjustment if other countries fail to take action THE PATH TO 60 VOTES

COAL Vote Count: 61 Keep coal in the system by offering incentives for carbon capture and storage Ensure costs do not increase excessively for coal dependent utilities THE PATH TO 60 VOTES

The Power of Coal Conrad Dorgan Johnson Nelson, B. Salazar Bingaman Byrd Rockefeller Brown Bayh Levin Stabenow McCaskill Pryor Lincoln Webb

Coal and the Senate West Virginia Indiana Wyoming Utah North Dakota Kentucky New Mexico Ohio Missouri Iowa Delaware Colorado Kansas Wisconsin Georgia Tennessee Minnesota Michigan Nebraska Maryland Texas Pennsylvania Illinois Alabama North Carolina Montana Virginia Arizona South Dakota Mississippi

AGRICULTURE Vote Count: 63 Offset system will generate revenue for farmers New opportunities to profit from renewable energy sources like solar, wind and biomass energy Promote energy efficiency measures to benefit farmers THE PATH TO 60 VOTES

OIL & NUCLEAR Vote Count: 65 THE PATH TO 60 VOTES Worker training Loan guarantees Direct subsidies for new plants? OCS, revenue sharing

Diverse Voices Represented Member Organizations:

Thank You David Hawkins NRDC