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Government Contracting Accounting and Compliance Developments Conference
June 7&8, 2012
8:00 AM
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Senators John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) Wednesday unveiled a new approach to climate change legislation they say can achieve the 60 votes necessary to pass the Senate. However, no Republicans have expressed support for the package and today all six west coast Democrats came out in opposition to provisions they feel did not restrict off shore drilling enough. The 987-page American Power Act promises to cut U.S. emissions of greenhouse gases by 17 percent from 2005 levels by 2020 and 80 percent by 2050, consistent with President Obama's pledge to the international community in December 2009. It would still allow the EPA to regulate stationary sources under the Clean Air Act.
The Kerry-Lieberman bill will lead to higher costs for energy produced by fuels that produce carbon emissions. It has yet to be formally introduced, but to mitigate higher energy costs for all users, the bill would provide more generous distribution of free greenhouse gas emissions allowances to electric utilities and U.S. industries than in previous climate change bills. These allowances are designed to soften the impact of higher energy prices on consumers and U.S. manufacturing, and would preempt states and the U.S. Environmental Protection Agency (EPA) from using some of their existing authority to regulate stationary sources of greenhouse gases.
The bill would also require federal contracting agencies and other agencies receiving federal funding for construction of projects authorized by the bill to comply with President Obama's Executive Order and subsequent rulemaking on PLAs, which was finalized in April 2010 and took effect yesterday. The order "encourages" federal agencies procuring construction projects greater than $25 million to "consider" the use of a PLA on the project.
In addition, the bill includes new transportation planning requirements that would require states and metropolitan areas to develop strategies with EPA approval to reduce greenhouse gas emissions through the transportation sector, including from reductions in vehicle miles travelled.
